'Deadline day' for industry to accept softwood deal

Canada's ambassador to the United States said Monday the proposed softwood lumber deal is the best the Canadian lumber industry can hope for and should be accepted.

Michael Wilson said years of potential litigation lie ahead if the industry doesn't get behind the new agreement.

"The United States government won't get behind another attempt at a negotiated settlement," Wilson told a House of Commons committee in Ottawa.

"What we have before us today is a deal Canada can be proud of — indeed the best deal possible," he said.

International Trade Minister David Emerson has set Monday night as a deadline for the lumber industry to support theagreement. It's not clear how much industry supportwill beenough for the Conservative government.

The government has asked about 300 companies to indicate where they stand on the deal by the end of Monday's business day.

Emerson's office said on an announcement on softwood lumber is more likely to come Tuesday, as many of the companies to report back are in British Columbia.

Wilson optimistic

Wilson expressed optimism that the government has enough support within the industry to proceed.

"We've talked to a number of members of the industry, so we have a pretty good handle on where people are," he said. "So, bythe end of business today we should be in pretty good shape."

Emerson has warned that he won't introduce a bill that establishes a quota system for softwood exports if the industry won't support theagreement that Canadian and American negotiators hammered out earlier this year.

Industry support is needed because the softwood deal requires companies to withdraw their court challenges and agree to let the U.S. keep about $1 billion US of the $5 billion US in duties the Canadian companies have paid in the last four years.

Many Canadian companies are not happy with the final deal, saying it amounts to a managed trade arrangement that benefits U.S. producers.

Export duties

Bill Van Bergeyk, of the Federated Co-operatives, claimed medium-sized lumber companies like hiswillpay a greater amount in export duties or taxes under the proposed changes.

"How can absorption of a future export charge that exceeds current, unwarranted, illegal duties make for a good deal?" he said.

NAFTA trade tribunals have consistently ruled that Canada does not unfairly subsidize its lumber industry — a claim that American producers and the U.S. government have consistentlychallenged.

The B.C., Ontario and Quebec governments cameon board after the Americans offered late concessionsto the initial deal.

Prime Minister Stephen Harper has signalled thathis government considers the legislation implementing the softwood lumber agreement to be a confidence motion. A defeat could therefore lead to an immediate election.

The NDP has called the softwood agreement a "sellout" to American interests.