2006-04-28

The Softwood Deal

The PM, CPC and National Post are gloating this morning aver the deal reached to end, presumably, the long-running softwood lumber dispute with the USA. Reality check:
  • by agreeing to the deal the PM has undermined NAFTA.  If the trade agreement is not enforceable on softwood lumber, what other sector will challenge it next?
  • all the tribunals which have reviewed the file have ruled in Canada's favour and the US government owes Canadian producers $5 billion.  Why did Canada settle for $4 billion?  Why has the PM agreed to take $1 billion out of the pockets of Canadian lumber producers and forest workers?
  • why has the PM agreed to limit Canadian producers and workers to a market share which is the same - or potentially smaller, depending on exchange rates  - as in the past.  He has told Canadians they should not expect to grow their market under his administration.
For the good optics of having a deal with the Americans and an invitation to The White House (or maybe even the Bush ranch at Crawford, Texas) the PM has sold out Canadian interests.  It's a deal that looks good for the Friday newspaper but which will probably haunt trade negotiations and treaties for years to come.  The PM has taken $1 billion form Canadian forest workers so he can go to a BBQ with President Bush.