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Unique Free Article:
'Craig Read ~ Trade: Softwood Lumber disputes and Soft Canadian heads ~ 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=206&subgroupID=21

".....Yet Canadian media and politicians want the public to believe that in softwood lumber – an industry ..........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....."
Canada illegally subsidizes its softwood lumber industry.In principle about $4 billion per annum in various taxpayer funded transfers are given to the unionized lumber industry.This is not a surpriseCanadian trade policy has always been ‘managed’ trade.Outside of the key auto and auto parts sectors, very little in Canada is material to ‘free trade’ with the USA.Yet Canadian media and politicians want the public to take on trust that in softwood lumber – an industry with 300.000 jobs and rate $70 billion per annum – there is a free and better trade with the USA.This is laughable.

Any independent study of Canada’s softwood lumber industry reveals the following.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.The entire Canadian lumber sector is therefore non transparent, nation controlled and regulated.This is not to say that the US is a nirvana of free markets in lumber – but the overt control by nation is largely non-existent and the US does have first and foremost market based timber pricing.Canada does not.

Okay so let’s see.Canada subsidizes and protects the following sectors:fishing, transport, banking, dairy, beef cattle, wheat, eggs, poultry, communications, culture, media, water, power, and fitness care - to name a notable few with expense boards, supply boards and regulatory agencies.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. The endure accordance on softwood lumber expired in 2001.Upon that expiry the US levied duties amounting to over C$4 billion per annum – the subsidized annual sum that Canadian taxpayers hand over to unionized lumber firms.Once political relations sour, then trade disputes will surely arise.Yet the moralizing Canadians are spellbound and call outrage.How quaint.

The problem for Canadians is two fold.First anti-US politics, not basic the Iraq war, free riding off the US military, anti-US media nonsense, and successive left wing governments have left US-Canada relations in tatters.Second, softwood lumber does not fall under NAFTA. The industry got used to the benefits the system provided and removing them would impose substantial hardships.

So the actual question is this – why is Canada largely anti-US in its electioneering and market manipulations?Canada has always been left wing – the very notion of US Conservatism has no pedigree in Canada – and Canadian politicians are socialist demagogues, quite goodness at using the media to blast out anti-American claptrap.Managed trade in Canada and quiet protectionism has a for an age history as well.Michael Hart’s excellent writing on Canadian trade history makes this clear.Contrary to their propaganda Canadians are not free-traders - agrarian barriers against third earth short of cash is a unaffected example of such hypocrisy.As Herbert Gruel, a professor emeritus of economics at Simon Fraser University, and a senior Fellow at the Fraser Institute, states:

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

In other words, artificially-low stumpage fees are a make-work system benefiting Canadian loggers and sawmill operators.A United States industry group, the Coalition for Fair Lumber Imports, claims these Canadian subsidies have almost ruined the United States softwood industry. Many sawmill workers would have to accept lower wages or even lose their jobs. lumber prices are touching new lows, bankruptcies and mill shutdowns are high and climbing higher, in the course of Canada's share of the U.S. 'Despite a forcible home building market, U.S.

In principle a plurality inventory of Canadian industry needs reform and free trade.Softwood lumber is really just an example of Canadian hypocrisy and political duplex talk.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. market approaches 35 percent, a close at hand record high.'

Canada does illegally subsidize its lumber industry and the WTO rightfully acknowledges this.However the Canadian reaction to the dispute is perhaps more revealing, than the dispute itself.Canadian politicians and the Canadian Prime Minister have taken to threatening, lecturing and hectoring the Americans.This demagoguery is much easier, and increases poll numbers, than in fact reforming the system.

Even more perversely an extra $1 billion is now being given to the softwood lumber industry to help spread over the of market share and the costs of the US tariffs.Yet all the during the interval Canadians are being told that they are miraculous free traders as they pour more cash into unionized shops with anti-American favor tags attached.Then again what do expect from a country that will re-elect a corrupt Federal side to power, that is managed by a French-Canadian mafia.It all ties into together so wonderfully....'

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Unique Free Article: 'Craig Read ~ Trade: Softwood Lumber disputes and Soft Canadian heads ~ productivity'

Unique Free Article:
'Craig Read ~ Trade: Softwood Lumber disputes and Soft Canadian heads ~ productivity'