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Rice tries to soothe Canadian fears on softwood
Rice tries to soothe Canadian fears on softwood By Randall Palmer and Sue Pleming
Tue Oct 25,12:34 AM ET
OTTAWA (Reuters) - Canadian Prime Minister Paul Martin attacked U.S. trade policy on Monday as U.S. Secretary of State Condoleezza Rice made her first official visit to Canada and played down a long-standing lumber dispute.
"Friends live up to their agreements," Martin said bluntly in calling on the United States to respect a North American Free Trade Agreement ruling.
Canada says the NAFTA ruling means Washington should return billions of dollars in duties on Canadian softwood lumber. The United States says the ruling was much more limited.
Rice tried to soothe trade tensions between the neighbors and said there was still time to negotiate on the lumber issue.
"I don't think the time for negotiation has passed," she told reporters en route to Canada for a one-day visit. "We have to keep this in perspective. We are very large trading partners and there will be disputes."
"We would like to see this one resolved," she added.
When Martin took over as prime minister in December 2003, he pledged to improve relations with the United States, but he has taken off the diplomatic gloves in criticizing Washington's imposition of import duties on Canadian softwood.
"Good relations with the United States does not mean that the prime minister of the country should not defend Canada," he said.
Martin pressed the trade issue over dinner with Rice, and a State Department official said the top U.S. diplomat reiterated Washington's desire to negotiate.
"She pledged to relay to President (George W.) Bush the prime minister's views on the issue and the importance to Canada of resolving the dispute," the State Department official said after the dinner.
A Canadian official said Martin reinforced Canada's position it needed a demonstration of commitment on the rules of NAFTA.
The U.S. position has been that while NAFTA has ruled in Ottawa's favor, the World Trade Organization recently ruled for Washington, saying subsidized and dumped Canadian lumber was threatening U.S. producers.
But Martin said earlier of the WTO, "NAFTA trumps it" and that he would not negotiate on a trade panel victory.
Rice has been the top U.S. diplomat since the beginning of this year and has traversed the globe several times over as she visited more than 40 countries, but this is her first visit to Canada since then. A visit in April was scrapped after Canada decided not to join the U.S. missile defense plan.
Asked how Washington felt about Ottawa opting out of the missile defense shield, Rice said the United States would like to have Canada participate, but it was Canada's decision.
"It is a defensive system and if you are not threatening anybody, then you should not fear a missile defense system," she said of Canada's refusal so far to join.
During their three-hour meeting, Martin also pressed Washington to help reduce the northward flow of illegal guns he said were becoming a growing problem in Canada.
Canadian Justice Minister Irwin Cotler said he would explore the idea of Canada's provinces suing U.S. gun manufacturers.
Cotler spoke to reporters just four days after the U.S. House of Representatives passed legislation giving the domestic gun industry protection from civil lawsuits.
Tue Oct 25,12:34 AM ET
OTTAWA (Reuters) - Canadian Prime Minister Paul Martin attacked U.S. trade policy on Monday as U.S. Secretary of State Condoleezza Rice made her first official visit to Canada and played down a long-standing lumber dispute.
"Friends live up to their agreements," Martin said bluntly in calling on the United States to respect a North American Free Trade Agreement ruling.
Canada says the NAFTA ruling means Washington should return billions of dollars in duties on Canadian softwood lumber. The United States says the ruling was much more limited.
Rice tried to soothe trade tensions between the neighbors and said there was still time to negotiate on the lumber issue.
"I don't think the time for negotiation has passed," she told reporters en route to Canada for a one-day visit. "We have to keep this in perspective. We are very large trading partners and there will be disputes."
"We would like to see this one resolved," she added.
When Martin took over as prime minister in December 2003, he pledged to improve relations with the United States, but he has taken off the diplomatic gloves in criticizing Washington's imposition of import duties on Canadian softwood.
"Good relations with the United States does not mean that the prime minister of the country should not defend Canada," he said.
Martin pressed the trade issue over dinner with Rice, and a State Department official said the top U.S. diplomat reiterated Washington's desire to negotiate.
"She pledged to relay to President (George W.) Bush the prime minister's views on the issue and the importance to Canada of resolving the dispute," the State Department official said after the dinner.
A Canadian official said Martin reinforced Canada's position it needed a demonstration of commitment on the rules of NAFTA.
The U.S. position has been that while NAFTA has ruled in Ottawa's favor, the World Trade Organization recently ruled for Washington, saying subsidized and dumped Canadian lumber was threatening U.S. producers.
But Martin said earlier of the WTO, "NAFTA trumps it" and that he would not negotiate on a trade panel victory.
Rice has been the top U.S. diplomat since the beginning of this year and has traversed the globe several times over as she visited more than 40 countries, but this is her first visit to Canada since then. A visit in April was scrapped after Canada decided not to join the U.S. missile defense plan.
Asked how Washington felt about Ottawa opting out of the missile defense shield, Rice said the United States would like to have Canada participate, but it was Canada's decision.
"It is a defensive system and if you are not threatening anybody, then you should not fear a missile defense system," she said of Canada's refusal so far to join.
During their three-hour meeting, Martin also pressed Washington to help reduce the northward flow of illegal guns he said were becoming a growing problem in Canada.
Canadian Justice Minister Irwin Cotler said he would explore the idea of Canada's provinces suing U.S. gun manufacturers.
Cotler spoke to reporters just four days after the U.S. House of Representatives passed legislation giving the domestic gun industry protection from civil lawsuits.
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