September 4, 2001
Kamloops Daily News



No wonder the Americans aren't worried about the "tough
talk" of Prime Minister Chretien when he was in Alberta. 
I guess he thought a little macho talk was appropriate in
the land of swagger and oil. There must be a better way.

Chretien told an Alberta audience that he gave US president
Bush "hell" for putting barriers up to Canada's lumber while
wanting our oil and gas.  Chretien's bravado was lost on
Americans.

Most Americans aren't even aware that they get energy from
Canada. They think that all their fossil fuels come from the
Middle East.  And the idea of a threat of Canadians cutting
off energy flow to the US is unthinkable to Americans.  Part
of the problem is that we are seen nice people -- incapable
of doing rotten things like retaliating.   

The idea of cutting off oil and gas exports is unthinkable
to Albertans, too.  They are in no mood to sacrifice the
windfall profits they are making on gas and oil.  After all,
it's those profits that are fuelling the political agenda of
the Alberta government.  Without oil and gas, the right-wing
gospel of the marketplace and low taxes would be hot air.

The unfair American tactics couldn't come at worse time for
the new B.C. Liberal government.  Not only are they faced
with a slowing continental economy, but now this and the layoff
of thousands of B.C. workers.

British Columbia suffers more than any other province from
the 19.3 per cent tariff on softwood imposed by the US. 
Almost half of all Canada's export lumber comes from here. 
To add insult to injury, the Americans are handing the
tariff money over to sawmills in the States.

The federal Liberals have chosen a path that will inflict
maximum damage on B.C.  The feds stubbornly support the
North American Free Trade Agreement and its dispute
resolving committees.  Sure, eventually the Americans will
loose this dispute.   But in the meantime, B.C. suffers.

The federal Liberals could have chosen to keep the money in
Canada as the last federal government did. In the last
dispute with the US over softwood, the then-Conservative 
federal goverenment implemented an export tax that kept billions
of dollars in Canada. 

The effect of both taxes is the same.  Both an export tax by
Canada or import tax by the US drives the price of lumber
up.  The difference is that Canada could collect billions that
would go to help unemployed saw mill workers in B.C.

Former Minister of Trade Pat Carney knows what its like to
deal Texas presidents -- she had to deal with Bush Sr. 
Carney was bluntly told by Bush toadies that "You are going
to loose regardless of how fair or legal your case is."  The
current Minister of Trade, Pierre Pettigrew,  blindly
believes in NAFTA and due process. 

You can't beat bullies by playing fairly.  The only way to
win is to play smarter.  We need to take advantage of our
nice image.  Canada should market its goods through Canada's
good brand name, says professor David Wheeler of the
Business and Sustainability department of York University.

Canada is universally known as promoting fair play, social
and environmental concern, says Wheeler.  Although our
reputation has been tarnished by foot-dragging on the part
of the feds in signing the Kyoto agreement to reduce
greenhouse gases, the Canada brand still has some marketable
value.

We should forget about the mass export of our natural
resources at discount prices.  Canada needs to tap into the
valuable environmental market. For example, the giant
retailer Home Depot will only take lumber with environmental
credentials.  Also, Europeans are prepared to pay more for
paper that has been produced without environmentally harmful
chemicals.

Even after years of wrangling with the US and the softwood
dispute is finally won by Canada, there is still the
perception that our stumpage rates for logs too low. 
Americans have to pay more than Canadian sawmills because
our logs are taken from publically owned Crown land.

Environmentalists on both sides of the border claim that we
are giving our resources away a bargain basement rates.  
And maybe they are right.  We need to regain the high road
so that "made in Canada" means that we care about our
environment.

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