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Editorial

A step in the wrcng dircction

NE OF THE sadder battles in life is the neighborhood fight, pitting friend against friend. That unhappy spectacle occurred last month when the U.S. Commerce Department ruled that lumber entering this country from Canada is unfairly subsidized and levied a 15% countervailing duty upon it.

The new ruling contradicts a 1983 decision that Canadian stumpage did not have an unfair trade advantage. This apparent broadening of what our government considers an unfair subsidy has opened up the possibility of far reaching trade restrictions on a number of Canadian exports to this country. Not the least of which is petroleum.

While the duty on incoming Canadian lumber rs now in effect, the preliminary Commerce Department ruling allows a45 day period for negotiations to avoid final duty implementation. A final resolution is expected by December 3O or on a yet-to-be-announced date in Februarv. 1987.

Without arguing the merits or demerits of a U.S. duty on Canadian lumber entering our country, we stlongly feel that this step to expanded trade protectionism is a step in the wrong direction. The direction we should take is negotiation. Canada is our number one trade customer and we are her number one trade customer. To erect ever higher barriers to the free trade we have enjoyed with each other over the decades is a tragic mistake. Our northern neighbor is one of our best friends in the international scene. Since we don't have very many, we ought to make every effort to accommodate her legitimate interests.

Like most neighborhood brawls this one has solid arguments on both sides. We don't dispute that or the fact that Americans in this industry have been hurt financially by the imports - though many have also gained. What's important here is the greater good and we hope that negotiations will lead to a settlement that will allow the tariff to be lifted.