N.B. premier takes NAFTA issues to Washington
Gallant to push province’s case to be exempt from softwood lumber duties
FREDERICTON New Brunswick Premier Brian Gallant is heading to Washington for a meeting Wednesday with United States Secretary of Commerce Wilbur Ross Jr. to talk trade.
Ross is a senior member of U.S. President Donald Trump’s cabinet, and is responsible for negotiating the Softwood Lumber Agreement.
Gallant says the meeting will focus on softwood lumber and the North American Free Trade Agreement.
“New Brunswick is Canada’s most export-oriented province, so robust trade between the United States and Canada is crucial for our economy,” Gallant said in a statement.
The premier wants New Brunswick excluded from countervailing duties on softwood lumber exports to the United States.
Last month, the U.S. Department of Commerce hit Canada with an additional 6.87 per cent in preliminary average antidumping tariffs, leaving the industry facing average duties of about 27 per cent.
The decision exempts the other three Atlantic Provinces, but New Brunswick — exempt from such tariffs in the past — is not.
Softwood lumber contributes more than $1.45 billion to the New Brunswick economy each year and employs more than 22,000 people.
While most softwood lumber exporters in New Brunswick would be paying a combined rate of about 27 per cent, it would be about 10 per cent for J.D. Irving Ltd., which was hit with a three per cent countervailing duty in April’s preliminary ruling.
Former U.S. ambassador David Wilkins has been hired as New Brunswick’s special envoy on the softwood trade dispute. He will be part of Wednesday’s meeting.
Gallant and other premiers were in Washington in early June to meet with government officials on the softwood lumber issue.
Quebec Premier Philippe Couillard expressed cautious optimism after a separate discussion with the U.S. commerce secretary about various traderelated irritants late last month.
Meanwhile, Quebec’s representative in the softwood lumber dispute between Canada and the United States says that dossier needs to be settled before talks begin on renegotiating the North American Free Trade Agreement.
Raymond Chretien, Canada’s former ambassador to the United States, says it would be difficult to have two sets of delicate negotiations going on simultaneously.
“We have to settle softwood before the NAFTA discussions begin,” he said in an interview. “Is that possible? I don’t know. There’s not a lot of time left. We’re almost in mid-July.
“The Americans aren’t ready, so we’re waiting for them. It’s up to them to get their house in order.”
The Trump administration will unveil its negotiating positions for a new North American Free Trade Agreement next week.
Negotiations are slated to begin in about a month.