Canadian PM blasts U.S. on lumber tariffs

MONTREAL – Paul Martin defended his direct approach with Americans on the bitter softwood dispute Friday, saying they need to get the message that special lumber interests are hurting their pocketbooks.

After nearly a year of complaining to President Bush with no results, Martin said it’s time to tell Americans their government is driving up the price of wood and harming trade relations with Canada.

“We are close friends and you have to be able to tell your close friends the truth,” Martin said at a news conference. “We’ve got to deal directly with the American people.”

Martin set aside diplomatic language this week to deliver a stern message to Americans that their reconstruction costs are higher after two deadly hurricanes because the United States has ignored trade rulings and imposed tariffs on Canadian lumber.

He said the U.S. position is nonsense and a breach of faith.

“It’s basically saying to the American people that this is not just a fight with Canada,” Martin said Friday.

The United States has refused to recognize a final ruling in August under the North American Free Trade Agreement that sided with Canada in the long disagreement, saying Canadian lumber doesn’t pose a threat to American producers.

The U.S. has collected duties worth $5 billion (Canadian) on softwood imports since 2002. Canada wants the United States to stop collecting the duties and refund the money.