PHOTOS BY NORMAN GARCIA

= In May of 2002, IWA members leafleted border crossings across Canada to bring the softwood lumber dispute to public attention in the U.S. and Canada.

Negotiating wit

The United States wants to resolve the softwood lumber dispute ’
with Canada by making our provinces adopt “market-driven”
forest policies monitored by the Americans themselves

BY KIM POLLOCK

NEGOTIATIONS TOWARDS a possible Aldonas suggests, for instance, Canada could

meet U.S. requirements by forcing provinces

settlement of the Canada-U.S. softwood lumber ‘2 institute timber auctions or log markets by

privatizing Crown-owned timber.

dispute have been recessed indefinitely although The American commerce undersecretary was

also critical of measures used by Canadian

most observers expect they will be resumed. The question is: when? provinces to stabilize communities and

support jobs, including such policies as cut

Talks were convened in Washington in February following the January control, minimum processing requirements,

log-export restrictions and mill-closure

release of a U.S. Commerce Department’s proposal by commerce under- _ limitations.

secretary Grant Aldonas.

Although Canadian response to the Aldonas paper was generally cool, stake-
holders and governments agreed to use it as a basis for exploratory talks toward
settlement of the long-standing dispute between the two countries.

However, at the conclusion of two days of talks in February, a negotiated settle-
ment to the dispute was far off.

The U.S. alleges that Canadian governments subsidize firms harvesting Crown
timber, allowing them to sell lumber to American buyers at below market cost.
Canadian governments and industry organizations have rejected the charge,
replying that the root of the Canadian advantage in U.S. lumber markets origi-
nates in more plentiful timber supplies, more efficient mills and a low Canadian
dollar relative to its American counterpart.

Aldonas’ proposal, outlined in a Commerce Department discussion paper dated
January 6, 2003, is the latest salvo in a battle that has now lasted for most of the
past two decades.

Aldonas suggests that the U.S. government could remove tariff and anti-dump-
ing levies against Canada’s lumber exports to the U.S. on a province-by-province
basis in exchange for provincial agreements to change forest management
practices and tenure laws in the direct of more market-responsive policies.

LOSING OUR ECONOMIC SECURITY

“We're not greatly impressed,” responded
IWA Canada national president Dave Haggard. “Timber auctions mean, in sim-
ple terms, that workers and communities will lose any sense of economic secu-
rity they currently have from timber harvesting in their area. If timber can be
purchased by any bidder, the result is instability and unpredictability for compa-
nies, workers and communities.” Haggard urged the Canadian and provincial
governments not to allow the U.S. to use its proposals as a means to undermine
Canada’s position by “picking them off” one-by-one. F
Under the Aldonas plan, Canadian forest-management changes would be
monitored by U.S. observers for compliance in such areas as changes in timber
harvest volumes, sawmill closures, employment levels, investment rates, lumber
output and the prices paid for Crown timber.
“We are extremely uncomfortable with any oversight by the U.S. over Canada’s
or the provinces’ sovereign rights to manage their forests in the interests of
Canadians,” Haggard observed. ‘
In a letter to federal international trade minister Pierre Pettigrew, Haggard also
sought a full role for TWA and other affected unions in the negotiations. oY
“We believe that our broad membership base and years of knowledge of the
forest sector will be an important asset to Canada as it strives to find a reason-

10 | THE ALLIED WORKER APRIL 2003