It was a case of “Sticks and Stones” versus the “Weaponization of Space” and Goliath lost when our Canadian Ambassador to the US, Frank McKenna, turned the tables and public opinion against Americans when he informed them that, we didn’t dither (on our support for their Missile Defense Shield), they did when they said they would lift their beef ban and didn’t. Note: The USDA had been ready to reopen the border on March 7, but the ranchers lobby group R-CALF convinced a Montana judge to block that decision, arguing that Canada doesn’t adequately test for mad cow disease. The ban was finally lifted several months later on July 14th 2005.
In a related story: Two years ago, a NAFTA decision on August 13, 2003 ruled that the 18 per cent tariff imposed on softwood lumber by the United States is too high. NAFTA decisions are legally binding and must be put into effect within 60 days. Two weeks later, a World trade Organization (WTO) panel concluded that the U.S. wrongly applied harsh duties on Canadian softwood exports. Now, almost 2 years to the day later, on Aug. 10, 2005, an “extraordinary challenge panel” under NAFTA dismissed American claims that the earlier NAFTA decision in favor of Canada violated trade rules. “This is a binding decision that clearly eliminates the basis for U.S.-imposed duties on Canadian softwood lumber. We fully expect the United States to abide by this ruling, stop collecting duties and refund the duties collected over the past three years,” he said. In December, the Americans reduced their duties by almost half to 10.8%. The decision is expected to save Canadian lumber companies $600 million a year; however, it is still unclear how or if the U.S. will refund some of the billions in duties it has already collected … and once again, the U.S. lumber industry signaled it might appeal.