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Paul Martin Responds To U.S. Ambassador's Warning; Vows To Defend Canadian Interests Print E-mail
Written by LPC   
Wednesday, 14 December 2005
Prime Minister Paul Martin today said the trade dispute with the United States over softwood lumber demands national leadership.

“The softwood lumber dispute matters to the people of Canada. This dispute with the United States demands leadership at the national level in Canada,” the Prime Minister told reports during a press conference following a visit to Terminal Forest Products Sawmills in Richmond, B.C.
“I'm going to defend Canadian interests on softwood. I'm going to stand up for Canadian values on climate change. And I will make sure that Canada speaks with an independent voice now, tomorrow and always, and you should demand nothing less from your Prime Minister.”

The Prime Minister made clear that his comments were in response to the warning U.S. Ambassador David Wilkins delivered to Canadians yesterday during a speech in Ottawa. Wilkins urged the Martin government to refrain from criticizing the policies of U.S. President George W. Bush’s administration, or risk damaging relations with the U.S.

“I’m sure that many of you have heard the comments yesterday from the American Ambassador – a man for who I have a great deal of respect. But that does not change one vital fact: when it comes to defending Canadian values, when it comes to standing up for Canadian interests, I’m going to call it like I see it.”

The Prime Minister also said that workers in Canadian mills should not bear the brunt of the trade dispute with the U.S. over softwood lumber.

“We are not going to let up until Canadian companies are repaid the tariffs that were improperly collected on our lumber and until our neighbours respect the fact that fair trade must be fair trade,” he said

The Prime Minister said his government has introduced a $1.5-billion Forest Industry Competitiveness Strategy.

The Strategy invests in the longer-term innovation and productivity needs of the forest industry to sustain its competitiveness. It also provides new funding to address the challenges facing workers, industry and communities.

The Strategy provides $581 million to support forest-dependent communities, market diversification and incentives for innovation in the forest industry, including incentives for bioenergy production.

The strategy also provides funds to facilitate up to $800 million in loan insurance and provides $100 million for a repayable contribution program for firms affected by the unique circumstances of the softwood lumber dispute.

This announcement builds on the Liberal government’s previous investments in the sector. Through regional economic development agencies and national programs, such as the Softwood Industry and Community Economic Adjustment Initiative, we have reinforced this pillar of the Canadian economy and provided peace of mind to communities affected by the softwood lumber dispute.

The Liberal government has also vigorously pursued their legal case through all available venues.

"We are following a three track approach to see the duties refunded to Canada – litigation, retaliation and high-level advocacy."

Martin went on to say that Canada through litigation had won a significant victory earlier this year when a NAFTA panel ruled unequivocally in Canada’s favour. "Canada is now advocating strongly to ensure the U.S. respects its NAFTA obligations."

"It is clear these efforts are having an effect. Earlier this month, the U.S. cut duty rates on Canadian softwood lumber in half. While this is a positive step in the right direction and shows the Prime Minister’s advocacy is making its mark, Canada will not let up in its efforts to make sure the U.S. respects the NAFTA rulings.We want to see the duties dropped entirely and the more than $5 billion in duties returned to Canadians."

Canada has also pressed its case at the WTO for the right to retaliate if the U.S. did not bring themselves in line with their WTO obligations. On December 5, 2005, the WTO ruled in Canada’s favour and opened the door for Canada to retaliate against the U.S.

"Canada continues to stand behind its industry, the workers and the communities affected by the unjust duties imposed by the United States on softwood lumber exports."
 
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