Well, with a week to go until the deadline for the Canadian industry to get on board and sign the U.S-Canada softwood lumber deal, the deal’s fate is very much up in the air.
News today from the Globe’s Bert Marotte that the layoffs in the forestry sector in Canada this year is now at 6,000 and counting. Simon Tuck, my officemate here in Ottawa, reports that Canada won another World Trade Organization ruling this week and that may stiffen the resolve of some companies to refuse to back the softwood deal.
There are two key aspects of the deal that puts a lot of power in the hands of industry players. First, companies who would collectively stand to receive 95 per cent of the money coming back from the U.S. have to agree to the deal. So far, it’s not clear that companies controlling 50 per cent of that money are on side. Secondly, any company or organization that has a lawsuit over the issue of illegally collected softwood duties has to agree to drop the lawsuit. So, presumably, if just one company refuses to drop a lawsuit, the deal is scuttled.
Simon, in his story, says companies are not being very forthcoming about their intentions in the days ahead of this deadline. I, too, have been wondering what the following companies will do. All of the following firms or organizations are plaintiffs in civil actions with either or both of the U.S. government and the Canadian government as defendants and, as a result, every single one of them has to agree to drop their lawsuits. I’ve listed the name of the company, provided a link where I could find one, put the head office location is (in brackets) and given their responses, where applicable.
- AJ Forest Products Ltd. (Garibaldi Highlands, B.C.) “AJ Forest Products has no comment.”
- Abitibi Consolidated. (Montreal) – No decisions havet yet been made. Company spokesperson said the company’s most senior leadership continues to meet right through the week to assess a course of action for Abitibi. Abitibi is also due about $239–million U.S. in illegally collected duties so it will also be a key decision maker on the the “95 per cent” issue. “What we have said to Mr. Emerson is we need some clarification with respect to the agreement … to reassure [us].”
- Aspen Planers (Surrey, B.C.) —message left—
- Buchanan Lumber Sales (Thunder Bay, Ont.) — message left —
- Canadian Lumber Trade Alliance — making no comments at this time —
- Domtar (Montreal) — making no comments at this time —
- Galloway Lumber Co. (Galloway, B.C.) – representative not available —
- Gorman Brothers (Westbank, B.C.) – representative not available —
- Leggett and Platt (Carthage, Missouri)— — messages left —
- Ontario Forest Industries Association (Toronto) — representative not available until the end of the week —
- Teal-Jones Group — messages left —
- Tembec (Montreal) — messages left —
- Terminal Forest Products (Richmond, B.C.) — messages left —
- Tolko Industries (Vernon, B.C.) — messages left —
- West Fraser Timber Co. (Vancouver) — messages left —