WHEREAS the lack of agreement on softwood lumber and other ongoing trade disputes between Canada and the United States continues to have a negative impact on both our economies; AND WHEREAS there is a need to increase discussions with US counterparts at both the local and national level on the benefits of free trade and an improved Canada-US relationship: THEREFORE BE IT RESOLVED that the UBCM and its members work in cooperation with the provincial and federal governments to strongly encourage US officials to abide by existing trade agreements and work with their Canadian counterparts to improve bilateral trade relations.
Intergovernmental Relations Secretariat Trade with the United States is vital for British Columbias economy. Softwood lumber and other trade disputes are affecting Canada-U.S. trade relations and the future of the North American Free Trade Agreement itself. British Columbia has also been encouraging Canada and the United States to work cooperatively to maintain an open and secure border that facilitates the flow of legitimate trade and travel. The Government of British Columbia is actively pursuing bilateral relationships with neighbouring U.S. states, particularly Washington State, and Alaska, through new memoranda of cooperation to maintain cross-border access for legitimate trade and tourism. The Government of British Columbia has also been working closely with the federal government to encourage the United States to act consistently with its international trade obligations and to rapidly resolve outstanding trade disputes. The Province supports UBCMs efforts to increase understanding in the United States of the benefits of free trade and the importance of improving and strengthening bilateral relations between Canada and the United States.
PRIME MINISTERS OFFICE Liberal Government On behalf of the Right Honourable Paul Martin, I would like to acknowledge receipt of your letter of October 25, with which you enclosed several resolutions of the Union of British Columbia Municipalities UBCM. You may be assured that the view expressed in the resolutions have been carefully considered. As copies of your correspondence have already been sent to the Ministers within whose responsibilities these matters fall, I am certain that they will have appreciated receiving this information. NATURAL RESOURCES CANADA ...Regarding trade, I am pleased that the Union of British Columbia Municipalities is supporting the federal governments objectives in reaching a fair settlement of the softwood lumber dispute with the United States. MINISTRY OF INTERNATIONAL TRADE Liberal Government ...I wish to assure you that finding a resolution to the long-standing softwood lumber dispute with the United States is a top priority for the Government of Canada. Indeed, the Government of Canada, in consultation with Canadian stakeholders, continues to explore every possible option to resolve this dispute, including litigation with the possibility of retaliation, high-level political intervention and advocacy. With respect to the litigation, after a complete three-year North American Free Trade Agreement NAFTA process, an Extraordinary Challenge Committee ECC affirmed on August 10, 2005, that the United States had no basis to conclude that Canadian softwood posed a threat of material injury to U.S. producers. This decision effectively removes the basis for U.S.-imposed duties on Canadian softwood lumber. The United States, however, has indicated that it will continue to collect duties and that duty deposits will not be refunded. Canada considers the U.S. reaction to be contrary to U.S. trade obligations and U.S. law. Canada will challenge the U.S. position before the U.S. Court of International Trade and will vigorously pursue this case to defend Canadian interests. In response to the U.S. action, I spoke with U.S. Trade Representative Rob Portman to register Canadas serious concern with the U.S. response to the ECC decision, and to indicate that negotiations with the United States, which had been tentatively scheduled for the week of August 22, would not take place. Canada has also requested World Trade Organization WTO authority to retaliate against the United States in three separate cases. WTO decisions on these requests for retaliatory authority are expected in mid-2006. In addition, Canada has already imposed retaliatory measures against the United States for its failure to repeal the WTO-inconsistent Byrd Amendment. With respect to your resolutions, I want to especially applaud your resolution on Canada-U.S. trade relations and the initiative that the UBCM members have proposed. I look forward to receiving an update on your organizations efforts at engaging with your U.S. counterparts. As you are aware, the government is committed to increasing our efforts in the United States to persuade key U.S. audiences to adopt a stance favourable to the resolution of this dispute. Across the United States, representatives from the Government of Canada are taking advantage of every opportunity to put our message, and our position, before American decision-makers, and those with influence on the lumber file. I look forward to the UBCM and its members contributing to this effort. Please be assured that Canada is committed to a long-term, durable resolution to the softwood lumber dispute that would provide our industry with stability and certainty. Negotiations, however, will only take place when it is in Canadas interest to return to the negotiating table. In the meantime, we will continue to press the United States to uphold its international trade agreement obligations and seek a resolution to the long-standing softwood lumber dispute.