Canada-US Lumber Dispute: Is Litigation Underway?

There have been some recent developments in the decade’s old lumber dispute between Canada and US.The dispute which started in 1982 due to the heavy competition between the Canadian and the US lumber producing companies seems to be entering an important phase in the recent times.

The history of the dispute

The Canadian economy relies heavily on its softwood lumber industry. However, there is one more field, which helped Canada to gain popularity among game lovers. The gambling industry, presented by a wide range of gambling establishment, can boast of its secure sources like ValleyGames web advisor. Here you will find thorough information about best Canadian online casino. As for woods, the land, where all the timber is grown, is owned by the provincial government which leases it out to the harvesting companies on contractual basis once they have agreed on the stumpage rate. This means that the overall cost of timber production is much lesser here. In America the things are different as the timber forests are grown on the privately owned lands. Once the timber is cut, it makes its way into the market after going through several dealers and sellers which escalate the overall price. Not only is American timber production insufficient to meet its demands but is also expensive when compared to Canada. Hence, the US-based companies started the dispute where Canada was blamed for deliberately keeping low prices to dump the market and take it over. The two countries came to a settlement agreement in 2006 and since its expiration in October 2015, the two countries are trying hard to, litigate the dispute between them.

What is the recent progress on the matter?

Although the Canadians are ready to settle for an agreement, the Americans for some reason are hesitant to do so which is leading to undue delay in settlement. If things remain to follow the same course, the Canadian side is ready to take the matters to court to reach a fair settlement between the two like it has been so many times in the past decades as well. But this time it will be a bit different. The case will be handled as a dispute-resolution under the Chapter 19 of NAFTA while the US side is urging Canada to end Chapter 19 altogether.

David MacNaughton, who is the Canadian ambassador in the Washington, blames the US lumber industry for this delay in reaching an agreement of any sort. According to him, they have been falsifying information and misleading the basic facts. They claim that the Canadians haven’t agreed on a cap and are not united on the terms of the deal which is wrong. Canada agrees to cap the exports to 30% of the US market and only wants that they are allowed to expand it when the market is hot enough that the US alone cannot meet its needs. It is important to note that owing to the increased import duties levied on Canadian lumber, the US has increased the imports from Russia. In the first half of 2017, the imports from the Germany alone were increased by 10 times.

The issue, like it has in the past, would need intervention from the political parties and politicians, especially from the American side. To help both sides, not only an agreement but a proper framework is needed to prevent such an issue from rising up again in the future.

Political system in Canada: basics

Canada is one of the largest and strongest economies of the world. It simply means that political issues here affect the rest of the world and its leaders. Here the politicians have to make sure that such steps are taken which make this country politically strong. Canada has a parliamentary system. The elected members of parliament are known as MPs. All these MPs must be related to a specific political party. The party which has the highest number of members in the parliament has the right to get their Prime Minister chaired. The Prime Minister of Canada is the head of state. Every government related department eventually reports him.

Current Prime Minister of Canada Justin Trudeau

The second aspect of the politics of Canada is a constitutional monarchy. Here the Queen Elizabeth II is the head of the state. For each province there are is a Governor General appointed by the Queen. In this manner, the Queen ensures that her political grip remains strong. The Governor Generals report the Queen about any developments and hence also serve as political advisors.  For all the Governor Generals of Canada, there is a head known as the Governor General of Canada. This person takes care of look after the state affairs for the queen. In Canadian political system, the Queen is regarded as the head of state. The viceroy also knew as Governor General of Canada is the second highest place in Canadian political system.

Queen Elizabeth II

The best part is that the executive powers do not lay with the queen. It means that the multiparty political system which runs in the country fosters democracy. These powers lie with the Canadian Prime Minister. The Prime Minister is also known as the head of the government. The viceroy of the state is always appointed on the advice of the prime minister. The term of the state Viceroy is not specific however it is 5 years in general. At the end of elections, the prime minister is nominated by the governor general. The provincial governments in Canada are autonomous not constitutionally but on the orders of the crown. There are total 11 sovereign crowns in Canada, 10 provincial and one central also known as federal. Most of the Canadian laws are made by House of Commons which is also known as the Parliament.

House of Commons

Here the representations are always elected through elections which mean common Canadians. The laws which are made by House of Commons are not immediately implemented. These laws and rules are reviewed by the Senate. Once the Senate approves the laws these are immediately implemented. The senators come from all corners of the country. It is the sole discretion of the Prime Minister to choose senators. The best parts of Canadian political system are:

  • Fostering a very strong Federation
  • Democracy

There are many issues over the period of time which has been faced by the nation. From Federation point of view, there was no opposition. When it comes to democracy the free and fair elections in the country make sure that democracy is never derailed. Quality is the center point of the political system which makes Canada the fastest growing economies of the world.