TIMELINE - The Softwood Lumber Dispute

2002

The Bush administration imposes tariffs on Canadian softwood lumber, accusing Canada of unfairly subsidizing its lumber industry and leaving American companies unable to compete in a free market. Canada accuses the US of practicing protectionism and breaching the Free Trade Agreement. Canada has since lost over $5-billion in punitive tariffs.

December, 2004

After years of negotiations, the U.S. Department of Commerce reduces tariffs on Canadian lumber from an average of 27.2 percent down to 22.1 percent. The tactic is not enough to appease Canada.

Wednesday, August 10th

A NAFTA Extraordinary Challenge Committee sides with Canada in the softwood lumber dispute, ruling that there was no justification for US tariffs on Canadian lumber. Canada demands a swift repayment of the roughly $5-billion collected by the U.S. in tariffs.

Trade Minister Jim Peterson hails the NAFTA ruling as “a binding decision that clearly eliminates the basis for U.S.-imposed duties on Canadian softwood lumber.” He further adds, “We fully expect the United States to abide by this ruling, stop collecting duties and refund the duties collected over the past three years.”

The United States disregards the NAFTA ruling, responding that it will continue imposing tariffs on Canadian lumber and go back to the bargaining table with Canada.

Tuesday, August 16th

In response to the United States’ refusal to acknowledge NAFTA’s ruling, Canadian ministers protest by scrapping plans to meet their American counterparts the following week for lumber-dispute talks.

"Following consultations with provincial governments, and in light of the U.S. response to the August 10 decision of the NAFTA Extraordinary Challenge Committee, the government of Canada has decided to not proceed with the negotiations planned for next week," said Trade Minister Jim Peterson in a statement.

Tuesday, August 23rd

Canadian Ministers Ralph Goodale, David Emerson and Jim Peterson hint that Canada may considers retaliatory trade measures against the U.S., slapping tariffs on some US products just as the United Stated had done with Canadian softwood lumber. One potential target is California wine.

Friday, August 26th

In an interview published in the Ottawa Citizen, U.S. Ambassador David Wilkins is quoted as saying that Canada should cease its “emotional tirades” and return to the negotiating table. The comments ignite a war of words, with scores of Canadian officials slamming back at the U.S.

Industry Minister David Emerson suggests that Canadians should prepare for a trade war with the U.S.

"Are we going to be stronger than the sum of our parts or are we going to be endlessly bickering amongst ourselves and allowing the bully to basically mop the floor with us?,” asked Emerson.

Minister of International Trade Jim Peterson says that Washington “should not confuse emotion with commitment and determination by Canadians to ensure the NAFTA is respected."

Prime Minister Paul Martin responded to Wilkins’ comments, saying "It's not emotional to state the facts.”

Martin said that he could call President Bush to discuss the issue after further consultating with members of the lumber industry, as well as seeking input from the original negotiators of the North American Free Trade Agreement from 1989, such as former PC Prime Minister Brian Mulroney.

Saturday, August 27th,

Stephen Harper calls Wilkins’ comments “way out of line,” adding, "But a big part of the reason this has happened is the Liberal government has allowed communications with the Americans to break down entirely."

Sunday, August 28th

NDP leader Jack Layton accuses the Liberal government of being all talk and no action. "We've heard words, we've heard some sabre-rattling…But we haven't seen a real plan," the Canadian Press reported Layton as saying.

Parul Martin mulls recalling parliament early from summer recess to address the softwood lumber issue—an ideas the Tories dismiss as unnecessary.

Monday, August 29th

An interim ruling from the World Trade Organization (WTO) sides with the United States’ claim that the U.S. lumber industry is suffering undue injury because of unfairly subsidized Canadian softwood lumber exports. The decision essentially renders Canada powerless to use retaliatory trade measures against the United States unless the decision is overturned upon appeal. Although interim decisions are subject to appeal, they are rarely overturned.

Tuesday, August 30th

US officials prod Canada to return to the negotiating table, but Canadian Trade Minister Jim Peterson refused to back down, stating that Canada intends to appeal the WTO decision, and threatening that Canada will not return to negotiations until the US was prepared to offer a "long-term, durable solution."

"It is only an interim decision. We are examining it very carefully,” remarked Peterson. “We were disappointed, of course, we would have liked to have won. But over all, our thrust remains, the U.S. has to live up to the NAFTA.”

Canadian officials redirect their attention to a case before the U.S. Court of International Trade in New York. The case is expected to be a protracted legal battle, which may eventually have the U.S. refund the tariffs taken from Canada.

Wednesday, August 31st

New Brunswick's, Bernard Lord, expresses his concern about all the “macho” talk between Canada and the U.S., saying he was worried it could hurt other Canadian exports. hoping to remind Canadians premier said Tuesday he's worried that "macho" talk in the softwood lumber dispute between Canada and the United States could hurt exports from his province.

"We can all talk tough, but in the end we have to make sure that we maintain access to our biggest market that represents 90 per cent of our exports to the U.S.," said Lord.