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'Craig Read ~ Lumber - an example of Canadian trade hypocrisy ~ productivity'

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After working for a few large IT firms Read born in 1966, is currently an entrepreneur and Venture Capital Advisor and Managing Consultant for Wireless and Mobile technologies [including the internet] and in particular, in software applications for the Wireless or Mobile Industry. www.craigread.com/ RESOURCE: www.craigread.com/displayArticle.aspx?contentID=328&subgroupID=21




"....Lumber which is a politically sensitive and vital regional jobs program in many parts of the countr.....
.....Craig Read, productivity, social spending in Canada, Competitiveness in Canada, Confederation, Reform in Canada, Toronto Reform, Canadian Against High Taxation, Toronto Taxation, canaht, Toronto taxes, Tax Reform, Toronto Citizens for Tax Reform, Canadian....."

You have to love a country that disengages itself from reality so often. The Multi-Cult club of anti-Western, anti-American and anti-Jewish policy reigns beloved. The Canadians – smug, moralistic, largely unapprised about history, economics and the globe at considerable – declare themselves superior, bright and advanced. Boards manage all commodities excluded oil. Whole industries lie under country control to the detriment of bank books and morality. Yet to listen the Canadians chatter about lumber you would ponder that they are pristine innocent virgins engaged in acts of morality whilst the hated Americans are planning the fall of thousands of unionized Canadian jobs and the shuttering of Canadian villages dependent on the lumber trade. Lumber which is a politically sensitive and vital regional jobs program in myriad parts of the country is massively subsidized by more than $4 billion per annum.

Canadian trade policy has always been ‘managed’ trade. The truth that Canada will forever subsidize its lumber and nevermore solve the systemic problems in the lumber trade highlights the want of big socialism. Yet Canadian media and politicians want the public to credit that in general trade matters and in softwood lumber in particular – an industry with 300.000 jobs and appraisal $70 billion per annum – there is a free and genuine trade with the USA. Even within the key auto and auto parts sectors, very little in Canada is subject matter to ‘free trade’ with the USA [there are Canadian at rest restrictions in auto and auto-parts].

Canada subsidizes and protects the following sectors: fishing, transport, banking, dairy, beef cattle, wheat, eggs, poultry, communications, culture, media, water, power, and incorruptibility care - to name a notable few with amount boards, supply boards and regulatory agencies. This is laughable and the recent settlement with the US to resolve this dispute highlights the big statist perfection that produces moral and economic retardation. Of course lumber is just a part of the entire Canadian trade problem – country mismanagement via artificial quota’s; expense supports; dues setting and demand management. Yet the gullible public is supposed to believe, thanks to media dis-information and political ‘national socialism’ ravings by lying politicians, that softwood lumber is a free trade product – outside of the usual Canadian protectionism? How logical.

Lumber like other ‘sensitive’ commodities is not traded under free or superior trade conditions. Until these programs of monstrosity are eradicated free and fine trade will sine die exist in lumber or in the countless other industries managed by the mommy-state. The entire Canadian lumber sector is therefore non transparent, country controlled and regulated. Canadian governments do not set market prices for timber land; there are numerous kick backs and subsidies to Canadian lumber firms from governments; export log quotas and production/processing requirements are protectionist; and the granting of licenses to cut timber is highly regulated and discriminatory. Canada does not though in some areas there is a movement to market based pricing albeit painfully slowly. This is not to say that the US is a nirvana of free markets in lumber – but the overt control by authority is largely non-existent and the US does have first and foremost market based timber pricing. Managed trade in Canada and quiet protectionism has a a certain number history.

Canadian politicians are socialist demagogues, and are quite service at using the media to blast out anti-American claptrap on trade issues. Contrary to their propaganda Canadians are not free-traders - barriers against third universe indigent is a sincere example of such hypocrisy. Michael Hart’s excellent writing on Canadian trade history makes this clear. The industry got used to the benefits the system provided and removing them would impose substantial hardships. As Herbert Gruel, a professor emeritus of economics at Simon Fraser University, and a senior Fellow at the Fraser Institute, states:

'[T]he current system was created to help the development of the province's vast timber resources. Much investment would have to be in writing off.'

In other words, artificially-low stumpage fees are a make-work system benefiting Canadian loggers and sawmill operators. Many sawmill workers would have to accept lower wages or even lose their jobs. 'Despite a trenchant home building market, U.S. A United States industry group, the Coalition for Fair Lumber Imports, claims these Canadian subsidies have almost ruined the United States softwood industry. market approaches 35 percent, a near at hand record high.'

In orthodoxy a for good account of Canadian industry needs reform and free trade. lumber prices are touching new lows, bankruptcies and mill shutdowns are high and climbing higher, when Canada's share of the U.S. So we have the media, their political allies, and the whole nexus of anti-US, anti-trade, and anti-corporate groups using the softwood lumber dispute to criticize the US, and face up egregious subsidization and the waste of taxpayer money. Softwood lumber is really just an example of Canadian hypocrisy and political bilateral talk.

"..... Yet all the during the time Canadians are being told that they are unheard of free traders as they pour more assets into unionized Lumber shops in sensitive vote rich districts with anti-American favor tags attached. Yet all the during the time Canadians are being told that they are unheard of free traders as they pour more assets into unionized Lumber shops in sensitive vote rich districts with anti-American favor tags attached....'

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