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explained that the tit-for-tat duties imposed on U.S. books, computer parts, semiconductors & Xmas trees were being repealed because the U.S. tariff on cedar shakes & shingles "did not enhance the competitiveness of the U.S. shakes and shingles industry, although it increased costs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 As a result, the export controls are staying, but the extra duties on the other products were repealed effective today.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 -- { seismo!mnetor cbosgd!utgpu watmath decvax!utcsri ihnp4!utzoo } !lsuc!dave