Is the Canada/U.S. softwood lumber dispute getting any play whatsoever in the U.S. media? It's pretty big news here.

For those who don't know, the short of it is that the U.S. imposed tariffs on Canadian softwood lumber quite some time ago. Canada filed a complaint under NAFTA. The U.S. lost and was told to lift the tariffs. The U.S. appealed. Every avenue of appeal was exhausted and the U.S. was still told that the tariff was illegal under NAFTA. The U.S. has essentially said, "Oh well. We want the tariffs, so we're just not going to honour our obligations under that treaty." Of course, they fully expect Canada and Mexico to continue to follow the rules. It's just the U.S. who gets to pick and choose when they follow the rules and when they don't.

Regardless of your views on NAFTA, doesn't the entire concept of international treaties start to break down if the U.S. feels that only other countries have to comply with them, and not the U.S.? First, selective compliance with human rights treaties and conventions (Geneva Convention anyone?) and now with trade treaties? Where's this all going?

Well, where this is going depends on who is inaugurated in 2009. Makes me nostalgic for the good old days of Nixon.

Bear

My Dad is a commodities reporter for Dow Jones newswire. One of his areas is lumber. He said there is one more appeal left like at the WTO level. He says the tariff was meant to try to help American lumber mills but has actually backfired and now the every-last-appeal thing is just a face saving exercise. He says the US is totally wrong but likely won't give in until the absolute drop dead last. Once the tariff is lifted the Canadians who have gone into lean mean fighting shape during the tariff years will overwhelm the fat dumb and happy American mills.

BTW - I would argue that every country has a biased media. I've been in a number of other countries and news is always presented from their viewpoint. I know the US does more than its share of spinning but we are not alone. Canadian media not excluded.


Jason A.