It looks now like the softwood lumber deal recently trumpeted as a victory by the Conservatives will fall apart due to industry dissatisfaction.
Separately, Canfor chief executive officer Jim Shepherd said he doubts the July 1 softwood lumber deal will be implemented unless it is reopened and amended to address industry concerns -- even though his company is prepared to live with the current agreement.
"Common sense would say that if there are no changes to the deal, it is highly problematic that this deal will go ahead," Mr. Shepherd said during a conference call that was made to discuss the firm's second-quarter results.
"I think an awful lot of work will be done to see if we can salvage this thing, but at this point it seems very discouraging that this will happen."
Canadian softwood producers have what amounts to a veto over the deal.
It can't proceed unless this country's companies withdraw about 30 lawsuits filed against the U.S. government in connection with the five-year-old dispute.
Mr. Shepherd's comments were the latest in a series of predictions by industry and provincial players who warned the deal could die if it's not sweetened.
But Mr. Emerson rejected calls to amend the deal, repeating the Tory government's month-old position that "negotiations have ended."
Actually, that is misleading. Negotiations never took place. The Canadian team was given a series of demands by American producers, who went though the motions of giving ground while actually getting everything they wanted, and a billion dollars in illegal tariffs to boot. Good on the industry for refusing be one more victim of U.S. intransigence.
But I am not here to discuss the softwood lumber agreement, but rather what it represents. What is truly illuminating about the softwood lumber dispute is that it is a microcosm of Canada's trade relationship with the United States, which is essentially the surrendering of our national sovereignty to binding (for us, not the Americans) agreements that benefit corporations and limit the ability of our own governments to respond to national issues in ways that work best for all Canadians.
Canadians are told time and time again that there are no other options. We must pursue free trade or stagnate, as if the possession of vast intellectual and resource wealth does not give us both international leverage and the tools for substantial propserity within a framework designed for our own benefit. The Canadian media stands fanatically opposed to any fundamental change in how we deal with international trade. Free trade is considered to be a positive end in and of itself, and we get precious little commentary or intellectual effort focused on what other approaches might work better for us.
However, a recent article from the Canadian Centre for Policy Alternatives posits that, by and large, NAFTA, and the many other "free trade" agreements we have entered into with the United States, have proven to be detrimental to most Canadians, while disproportionately benefiting the super rich.