dave@lsuc.UUCP (02/19/87)
In the budget yesterday (which I watched carefully due to my interest
in the income tax aspects), Finance Minister Wilson explained that
the tit-for-tat duties imposed on U.S. books, computer parts,
semiconductors & Xmas trees were being repealed because the U.S.
tariff on cedar shakes & shingles "did not enhance the competitiveness
of the U.S. shakes and shingles industry, although it increased costs
to American consumers".
According to the Finance Minister, it was the Canadian tightening
of export controls on cedar logs & bolts which had this effect:
"the export controls have protected the competitive position of
the Canadian industry, which has been able to return to almost
normal production levels".
As a result, the export controls are staying, but the extra duties
on the other products were repealed effective today.
Questions:
1. Why do export controls over cedar logs & bolts prevent the
U.S. tariff on shakes and shingles from helping U.S. industry?
Without knowing more, I'd have to assume that these logs & bolts
are needed to "put the shingles together" or something along those
lines. But surely the export controls have to be hurting the
Canadian cedar-logs-and-bolts industry! And surely, too, these
materials are available from U.S. and other suppliers.
2. Why have I heard nothing about these export controls before?
I didn't know Canada had export controls on much of anything,
except obvious things like military equipment, and goods shipped
to certain unfriendly countries. Have these controls received
any press in B.C.? (I read the Financial Post pretty thoroughly
every week, and don't recall ever seeing them mentioned, which is
surprising.)
David Sherman
The Law Society of Upper Canada
Toronto
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