U.S.o Canada Creep Closer On Softwood Dispute

B.C. forests minister Mike de Jong said the recent U.S. proposal to end the softwood dispute could be a basis to restart negotiations.

The U.S. Commerce Department recently called for a "fundamental change" in the way provinces allocate raw timber to companies.

The U.S. suggested that Canada emulate its more market-driven logauction practices. The proposal also called for putting Canadian timber marketing under U.S. monitoring.

As part of the thaw, B.C. forest industry executives, including Canfor

Corp. president and c.e.o. David Emerson, went to Washington in late January to speak with Commerce Department officials.

"I continue to believe there's the potential for a win-win here," said Emerson. "To deal with both the long-term kind of resolution of the trade issues and the long-term resolution of B.C. forest policy."

Despite their optimism, others in Canada feel the U.S. proposal is completely one-sided.

Forestry consultant Russell Taylor said the U.S. plan is based strictly on economic theory and has no relation to business reality.

Taylor agreed that, "Canada has a competitive advantage in the way it prices timber," but emphasized that "it's not a subsidy."

As part of a possible prelude to talks, de Jong has proposed that Canada collect a softwood export tax as a temporary replacement for the 2J7o countervailing duties imposed by the U.S. last spring.

Many in the Canadian industry feel that the U.S.'s recent interest in ending the dispute is a direct result of the suffering of U.S. producers.

"The American producers," said de Jong. "Didn't anticipate the way that British Columbia in particular was going to respond."

Also weighing in with a solution was a consortium of American and Canadian labor unions.

Labor has proposed that each Canadian province have the freedom to make changes to its timber policy, so long as there is a mandatory graduated Canadian federal export tax in place of U.S. duties.

Another alternative is to create a voluntary provincial timber fee that would have the effect of a tax.

Labor leaders say these proposals will allow provinces to keep some independence on local timber issues, while still allowing U.S. and Canadian companies to compete fairly on lumber sales.

The final U.S. position is expected to be ready some time this month. Both sides anticipate a period of feedback to follow and then hopefully negotiations.

Depot Scam Trio In Court

Three Irish nationals arrested this summer in San Leandro. Ca.. for allegedly scamming Home Depots across the country (see Aug. p., 32), have pleaded innocent in an Oakland, Ca.. federal court.

John Patrick Hay, 55; Anthony Davenport, 47, and Linda Broderick, 49, are each charged with one count of conspiracy to commit wire fraud. Hay faces six wire-fraud counts.

According to San Leandro police, the trio replaced Depot bar codes with homemade forgeries that rang up items at a significant discount. They then returned the items for the full price, netting themselves a lucrative cash refund.

The accused were scheduled to be back in court in late January.

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