Nafta put the Shata to Canadian Softwood

Filed in archive Doing Business In USA on July 19, 2006

Via Blogcritics.org Richard Marcus writes a relatively balanced update on the progress of the $5 billion US and Canadian Softwood lumber dispute in his "Canadian Politics: Softwood Lumber, The GST, And A Trip To Washington" is important to Canadian Small Business because many of the contractors and sub-contractors that provide services to this industry are small business owners.

He points out that the US is only returning 80% of the $5 billion netting a cool $1 billion making this look to me like the US is taxing the tax they took improperly in the first place.

This dispute has been going on since 2002 (almost 4 years) and yet the proposed agreement allows either country an escape clause after 23 months. Plus 95% of the companies must agree to it for it to be accepted and in BC alone more than 5% of the companies who are affected and it does not look like they are in a mood to accept this proposal.

Four years of unjust tarrifs to get back only 80% and only a guarantee of 23 months of normalized business activity. If I was them I would veto the deal too. Maybe we should find additional markets for our softwood lumber or those providing services to the industry should find new markets? I know Alberta businesses are looking for qualified trades and business people to support the booming oilsands.

What am I thinking? That would mean hard work to reach softwood markets further afield and more expensive to service. Silly me. Oh, and those contractors and small business owners might have to move to Alberta to serve the juggernaut oil industry of Western Canada. Hmm.