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Canada report

Canada may sue for $5-billion in lumber duties

By JIM FOX
Published October 16, 2005

Canada's demands for the United States to return $5-billion in "improperly assessed" lumber duties could go before the courts, Prime Minister Paul Martin warns.

In a phone conversation with President Bush, Martin said Canada would wage its battle over softwood lumber in American courts - and in the court of public opinion.

No progress was made on the issue in the 20-minute call Friday, with Bush saying he prefers a negotiated settlement.

Canada has won all the North American Free Trade Agreement challenges to U.S. tariffs and duties, Martin said, adding: "That should be respected."

As the dispute lingers, Canada is looking to other markets such as China for its lumber and other products including oil.

Maverick Member of Parliament Carolyn Parrish has decided not to seek re-election in a federal vote expected within six months.

"In all careers, there comes a logical time to move on - to make room for others who also have a strong desire to serve," said Parrish, of Mississauga, west of Toronto.

First elected in 1993, she was expelled from the Liberal caucus last year after making critical remarks about Prime Minister Martin. She also stomped on a doll effigy of President Bush to protest his ballistic missile defense scheme.

A court has denied an appeal from protectionist U.S. ranchers that could have again closed the border to all live exports of Canadian cattle. The 9th U.S. Circuit Court of Appeals let stand a July 14 ruling to overturn a two-year ban on young cattle imports due to mad cow disease. The Canadian government and cattle industry continue to lobby Washington for trade to resume in older cows and breeding stock.

Canada's military has sent its Disaster Assistance Response Team to earthquake-ravaged Pakistan. A team of Canadian peacekeeping soldiers in Afghanistan went to Pakistan last week to prepare for the aid. Canada has committed $20-million (Canadian) in relief aid.

The Canadian government had a budget surplus of $6.8-billion (Canadian) in the first five months of the fiscal year. That's up $2.2-billion from the same period, April to August, last year. Spending rose by $5.8-billion, largely because of payments to provinces for health care and equalization grants.

Toronto health officials are puzzled why two middle-aged men came down with legionnaires' disease near a seniors home where 17 residents died. The men contracted the pneumonialike illness despite having no connection to Seven Oaks Home for the Aged. A possibility is that the disease was spread by a rooftop air conditioner that sent bacteria through the home, adjoining buildings and to pedestrians on streets below.

The Canadian dollar is lower at 84.26 U.S. cents while the U.S. dollar returns $1.1868 Canadian, before bank exchange fees.

The key interest rate of the Bank of Canada is steady at 2.75 percent while the prime lending rate is 4.5 percent.

Canadian stock exchanges were lower, with Toronto Stock Exchange composite index at 10,488 points; the Canadian Venture Exchange was 2,057 points.

Lotto 6-49: (Wednesday) 11, 15, 23, 34, 35 and 36; bonus 28. (Oct. 8) 5, 13, 15, 17, 24 and 27; bonus 29.

Jim Fox can be reached at canadareport@hotmail.com

[Last modified October 16, 2005, 01:33:15]