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NEWS RELEASE
For immediate release: December
19, 2003
Tolko opposes proposed softwood
lumber settlement
Vernon, BC – Tolko is withdrawing its qualified
support of the proposed softwood lumber agreement. “The events
of the past few weeks have made it clear that our reservations about
the proposed settlement are valid,” said Mike Harkies, General
Manager, BC Operations. “I am convinced that the proposed
quota settlement system will not lead to free trade. It’s
unrealistic to think that an exit from this quota system to the
satisfaction of the US Commerce Department will be achieved within
five years. It is more likely that we will be in an unpredictable
new trade dispute at that time. We also do not see an equitable
formula for quota allocations in Canada, and without one it is unreasonable
to expect broad support by the Canadian industry.”
“We are as interested as everyone else to put this long-standing
dispute behind us,” said Harkies. “But in the absence
of what we would see as an equitable process, we would prefer to
continue with the current legal challenges before the World Trade
Organization (WTO) and NAFTA. Even though the legal process is onerous,
costly and disruptive to our business, we see the future as being
more predictable and fair to all sectors of the industry than the
quota deal. The findings by the ITC earlier this week were not unexpected
and we anticipate these findings will be dealt with by the NAFTA
panel in the same manner as the first findings. We are also encouraged
by the WTO ruling of threat of injury which further strengthens
Canada’s position.
“We encourage the provincial governments to proceed with
their forest policy reforms which will strengthen our position through
the administrative review process and progressively remove barriers
to free trade. This is a longer, slower process, but one we see
as more predictable and fair to all sectors and regions of the Canadian
forest industry.”
“A negotiated solution which recognizes the interests of
all of Canada may still be achievable, but we do not support quota
based systems,” concluded Harkies.
For more information:
Sheila Catlin
Manager, Communications & Public Relations
Phone: 250-549-5326
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