Prime Minister's announcement on softwood lumber

NEWS RELEASES

PRIME MINISTER'S OFFICE

ONTARIO MINISTRY OF NATURAL RESOURCES

SAULT MP TONY MARTIN

********************* Prime Minister announces Canada and U.S. reach softwood deal

Prime Minister Stephen Harper announced today that Canada and the United States have reached a long-term agreement that resolves the longstanding softwood lumber dispute between the two countries.

The United States has agreed to Canada's key conditions including:

- stable and predictable access to the U.S. market: there will be no quotas and no tariffs at current prices

- repayment of duties: at least four billion dollars will be paid out to Canadian producers

- provincial flexibility: there will be different compliance options in response to varying operating conditions across Canada

- certainty: the deal runs for a minimum of seven years with options for renewal at a later date

"Canada’s bargaining position was strong; our conditions were clear; and this agreement delivers," said the Prime Minister. "It's a good deal that resolves this long-standing dispute and allows us to move on."

The Prime Minister said today's agreement was the product of intense engagement on the part of the Canada and noted the agreement is supported by British Columbia, Quebec and Ontario, Canada's three main softwood-producing provinces.

"We have a deal that defends Canada's national interests and helps Canadian communities and workers," said the Prime Minister. "I commend Premiers Campbell, Charest and McGuinty for their support."

******************* Arrangement better reflects Ontario's interests

TORONTO, April 27 - Ontario is pleased with the announcement of a framework that would lead to the resolution of the current softwood dispute, Natural Resources Minister David Ramsay said today. "A lot of work went into negotiations that have led to this framework, and we have steadfastly defended Ontario's interests throughout the process," said Ramsay. "While this arrangement would require each jurisdiction to make some concessions, Ontario got a critical element - a more reasonable share of softwood exports."

Ontario had opposed an initial version of the proposed framework that would have reduced the volume of lumber that the province could export to the U.S. to levels well below historical levels. "We will lend our support to this arrangement as it will help end a long-standing dispute that has severely affected our forest industry," said Ramsay. "I would like to thank Ontario's team in Washington, led by Mr. Michael Kergin, for their efforts in representing our province." Ontario looks forward to working with the federal government and other provinces to finalize the formal agreement and develop an implementation process. ******************** Softwood lumber deal bad for the North

Layton denounces sell-out

OTTAWA – Today, NDP Leader Jack Layton denounced the Harper government for betraying Canadian interests by brokering a softwood agreement that permanently compromises Canadian producers.

Layton says communities and hard working Canadians have been waiting for years for Ottawa to get our money back. "New export charges are a sell-out, new quotas are a sell-out, accepting 80 cents on the dollar is a sell-out. When is the Canadian government going to stand up to U.S. bullying and say no to this slap in the face?"

The softwood framework agreement would commit Canada to seven years of a self-imposed export tax on Canadian lumber and varying quotas, which would undermine Canada's repeated victories through the NAFTA dispute settlement process.

Under the terms of the framework the U.S. will keep over $1 billion of illegally collected duties from Canadian lumber companies.

Sault Ste Marie MP Tony Martin says successive NAFTA panels have consistently ruled in favour of Canada. "Northern Ontario cannot be sacrificed for the betterment of relations with the United States. The Harper government has to get serious about protecting Canadian interests and the interests of communities and workers in the north."

Timmins-James Bay MP Charlie Angus says the Americans are stealing our money while mills in Smooth Rock Falls and Opasatika, for example, shutdown. "They took $5 billion in softwood duties. Now they offer to pay us back $4 billion. Where's the other $1 billion? The north continues to get kicked in the teeth."

Canadian taxpayers have paid $100 million to lawyers who won the case on the NAFTA dispute settlement, and now this Conservative government is throwing in the towel.

Under NAFTA the Americans are obligated to provide Canadian softwood exporters with free entry for softwood, remove any punitive duties and return the $5.3 billion collected in illegal import duties to the Canadian companies that paid them.

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