As noted in an earlier release, a bipartisan group of senators has written a letter to President Obama, urging him to encourage Canada to forge a new softwood lumber trade deal. As expected, Canada has responded.
A letter from International Trade Minister, Chrystia Freeland, and Canada’s Ambassador to the United States, David MacNaughton, went out on October 27th to two dozen senators, with a copy to President Barack Obama.
The letter expresses that U.S. lawmakers are being misled by the U.S. Lumber Coalition, their domestic lumber lobby group, about the causes of what is now being seen as “Canada’s foot-dragging” on negotiations. The letter also states that Canada has in fact acted in good faith, meeting wherever possible to get a deal done, and presenting specific proposals that incorporate the conditions that the President and Prime Minister set out.
The letter goes on to accuse the U.S. Lumber Coalition of inflexibility in these negotiations, taking a protectionist stance by demanding a reduction of Canada’s current share in the U.S. softwood lumber market.
Along with estimates of how a disruption would impact U.S. consumers, the letter warns of shortages that may occur in the United States, and the rising prices that would ensue.
They conclude by reiterating that Canadians “…remain determined to reach a fair and reasonable arrangement”.
The gauntlet has been tossed and received. Both parties seem to be hardening on their positions. It appears that negotiations are now nearing an end, and that an agreement is in the offing.