Free trade in the Americas would be a powerful antidote for poverty — if everyone played by the rules, Prime Minister Paul Martin said here today in a veiled shot at U.S. President George W. Bush.
“The fact is that President Fox, myself, President Bush, all of us believe strongly in the free trade of the Americas. But we know that it’s got to be based on rules — and rules that are listened to,” Martin said.
Martin thanked Fox [not Bush] for vocally supporting the need to respect the process for solving disputes in the North American Free Trade Agreement.
Ottawa has been at odds with Washington over the U.S. refusal to obey a NAFTA ruling that U.S. tariffs imposed on Canadian softwood imports are unjustified. Steep duties have cost producers more than $5 billion.
The U.S. has so far side-stepped a NAFTA ruling that it should repay $3.5 billion.
Martin was expected to raise the issue informally with Bush, but did not have a private meeting planned.
For those of you who are unfamiliar with the softwood lumber situation, here is a rough sketch. Canada “sued” the US regarding the US’ tariffs and duties attached to imported Canadian softwood lumber. Canada took the US to arbitration as required under the NAFTA treaty. Canada won. The ruling required the US to pay Canada the money collected from the tariffs and duties. Now the US wants to talk to Canada about the situation.
Basically, Canada played by NAFTA rules and won. Now the US wants a new sandbox to play in, even though we ratified the treaty thereby agreeing to adhere to its rules.
As a new hockey fan, I have gained a tremendous respect for Canada. And this statement increases my respect.
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