In an Associated Press article published in the Washington Post today, I was struck by a couple of things.
First off, no matter what your position on it, NAFTA has people everywhere unhappy. A deal was struck yesterday between the US and Canada to settle a trade battle over softwood lumber. The United States has been imposing penalty duties on Canadian lumber for a number of years, contending that Canada is unfairly subsidizing its own producers.
It seems that both Administrations are crowing that this is a great day for relations between the two countries. Not everyone shares that view.
"Unfortunately, it's a great day for American industry, for American policy and for American trade _ and it's a disaster for Canada and free trade," Graham said (Bill Graham, opposition leader of the Liberal Party in the Canadian Parliament).
"This is all organized to keep competition down and prices high for U.S. producers," said Gary Hufbauer, an economist at the Institute for International Economics, a Washington think tank.
Jerry Howard, executive vice president of the National Association of Home Builders, complained that the deal "would provide a massive subsidy to the U.S. timber industry at the expense of millions of American consumers."
I'm just continually struck by the complexity that government involvement brings. Both governments are (apparantly) subsidizing their respective industries, or artificially propping up prices.
People are either complaing that the 'other guy' is getting too much or they're getting too little.
If you have a business, you might want to do everything you can to stay out of the government's way. Especially if they come to you with a smile and a handout!
Comment Preview