Speakout: NAFTA can help resolve lumber tiff Rocky Mountain News: Opinion By William E. Brock
NAFTA also contains the mechanism for resolving disputes between the partners, the type of disputes that inevitably crop up in any trading relationship. On and off over two decades, the U.S.-Canada trading relationship has been strained by a dispute over softwood lumber. The U.S. upped the ante in 2002 by slapping a 27 percent tariff, or import tax, on softwood lumber we import from Canada. Three weeks ago, a NAFTA dispute panel ruled against the United States in the case, the latest in a series of international rulings that have generally supported Canada on the softwood lumber issue.
This long-running dispute matters to the people of Colorado because the state imported $67 million in Canadian softwood last year. Canadian softwood is popular with homebuilders, and is widely used to build new homes and remodel older ones. So the stakes are high, since anything that adds to the cost of a new home is a potential drag on the nation's economic recovery and a threat to jobs in construction and related fields. The tariff makes it more difficult for many people to realize the American dream of homeownership.