Why is Canada risking a trade war so it can subsidize US forest giants?
Environmentalist Gary Gallon of Montreal advises corporations, organizations and governments. In his e-mail bulletin (The Gallon Report) he lays bare the roots of the softwood lumber dispute that threatens to ensnare the two countries. Gallon says the US is right that Canadian stumpage fees – money paid for cutting public timber – are too low in comparison with the US, and that reforestation rules in Canada are too lax. He points out what should have been an obvious irony – that the forest companies benefiting most from low stumpage fees are primarily US-owned. So in effect, Canada’s low timber dues constitute a multi-billion-dollar subsidy to US industry to exploit our forests at the risk of a major trade war with the US. Good grief. The latest corporate get-rich-quick scheme: According to economic journalist Linda McQuaig this is to sue countries. Under NAFTA, companies can sue nations if they feel a nation is impairing their competitive advantage. That’s what courier company UPS is
