The Globe and Mail reports in its Monday edition that Natural
Resources Minister Jim Carr last week mentioned loan
guarantees to help the softwood industry, which some fear the United
States will see as subsidies
and will simply hike the tariffs
more.
A Canadian Press dispatch to The Globe reports that White River Forest boss Frank Dottori said Friday, "We want a loan guarantee."
He says the idea of loan guarantees
as a subsidy has been
debated and reviewed by international
trade panels and rejected.
Still, the last time Canada and
the U.S. engaged in a
softwood battle, the $1.5-billion
aid package, including loan guarantees,
was immediately called a
new subsidy by the U.S. trade
representative.
In the end, it did not matter
then because the U.S.
and Canada were already most
of the way finished negotiating a
settlement on softwood that was
finalized just four months after
the package was offered.
Mr. Dottori says his company is
paying $500,000 a month in
duties, a punishing amount he
can withstand only because the
market is incredibly hot and the
Canadian dollar is low.
He says a loan guarantee will help his
company keep people working
until Canada and the U.S. get a new deal.
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