Chamber gives softwood advice: in Timmins recently, Canadian Chamber of Commerce president Nancy Hughes Anthony said Canada has to present its interests as good for Americans to get noticed in Washington.

Timmins -- "The line in the sand has been drawn."

These words rang loud and clear to a Timmins Chamber of Commerce audience at their 56th annual general meeting and dinner, Oct. 13. As president and CEO of the Canadian Chamber of Commerce, Nancy Hughes Anthony presented her view about cross-border softwood lumber dispute with the United States that are affecting not only Northern Ontario, but regions throughout Canada.

Recognized as one of Canada's most influential leaders according to the National Post, Hughes Anthony says the Canadian Chamber of Commerce has made this a number one issue in discussions with U.S. business leaders, government people and the Canadian embassy in Washington.

As a result, the U.S. Chamber of Commerce, which is very influential in the business community in the U.S. and with the Bush administration, has issued a joint statement with the Canadian Chamber. It expresses support for the rule of law as it pertains to the North American Free Trade Agreement (NAFTA) and says both countries should implement the decisions of the NAFTA panel.

Building political, business and chamber linkages outside of Washington will help increase awareness to congressional leaders and strengthen the importance of north/south linkages in their own communities. In this manner, they can put pressure on their own government.

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Advocating connections in this capacity is necessary, because important Canadian issues, such as softwood lumber tariffs, which contravene the NAFTA agreement, are "completely invisible on the radar screen of U.S. policy-makers," says Hughes Anthony.

Additionally, the Canadian Chamber has been calling on the Prime Minister to intervene at top levels with President George W.Bush.

Prime Minister Paul Martin has demanded the White House pay back the $5 billion of accumulated tariffs the government has collected from Canadian lumber exporters.

Despite the issues that could harm Canadian interests, Canada is not particularly special in Washington, as there are a multitude of interests competing for attention.

"We have to position our interests-Canadian interests-to be as American interests, in their interest and try to ensure there is leverage in this way," Hughes Anthony says.

But how long can this battle, undermining the constitutionality of NAFTA, continue, she asks?

As one of the longest-running disputes between Canada and the U.S., it has now taken on symbolic significance in terms of trade and is overshadowing the 95 per cent of successful trade that occurs with the Americans under the NAFTA rules.

"We know that under NAFTA, our trade with the U.S. has grown exponentially; six per cent annually over the last decade," Hughes Anthony says. "It maintains thousands of jobs, and it is hugely successful. It is something we need to maintain, cherish and broaden."

Due to the lack of response by the U.S. government on the most recent ruling by the ECC (Extraordinary Challenge Committee), Canada has stepped back from negotiations until the U.S. government steps forward with a sign of good faith. They could cease to collect duties at the border, or refund duties owed to Canadian companies. Clearly, it has become a question of credibility as to whether the U.S. will respect the negotiated terms of NAFTA.

Timmins Chamber of Commerce president Tom Laughren says he will support local forestry partners by lobbying individuals and governments within the community.

"As a board of directors, we're going to try to engage five influential people each and hope they will do the same, to try to put pressure on MPs and MPPs, and anyone that has influence with the government."

Hughes Anthony believes people power does work and will help turn up the heat.

At the end of the day, Canada may examine retaliation options, which may provide useful leverage if used correctly, and seek to diversify export markets and upgrade more products.

"We have to hang tough, play hardball and find a way out of this box, because of the collateral damage that this poses, and the precedent that it creates to NAFTA as an institution and our co-operative efforts in North America."

www.chamber.ca

By ADELLE LARMOUR

Northern Ontario Business