Wednesday, June 14, 2006

On a loss of control

Think Progress reports on yet another shady side of the softwood lumber deal, as the money to be spent on jointly-agreed "meritorious initiatives" may find itself turned into a Bushco slush fund:
ThinkProgress spoke with a lawyer familiar with the case, who said the following about the agreement:
– The United States is requesting $480 million for “meritorious initiatives” and just $20 million of the joint initiative benefiting the North American Lumber market.
– The agreement contains a complicated escrow system that may allow the $480 million to be funneled from the Treasury Department to the White House.
– It is the position of U.S. negotiators that Congress does not need to have any involvement in the deal.
Now, I'm far from agreeing with Think Progress' take - both in its characterization of the settlement as "obscure", and its focus primarily on internal U.S. controls. From a Canadian perspective, it's hard to share the concern as to any lack of Congressional oversight when the intention of the fund was to allow for jointly agreed initiatives between the U.S. and Canada.

But the flip side is that Canada should have at least some meaningful ability to determine the eventual use of the money to be used for joint purposes. From the sound of things, the deal as structured will give Bushco total control over how the money is spent, and won't likely wind up benefitting the lumber market to any meaningful degree...presumably leaving Harper to beg for some input as to how the money is used, and then to claim victory if Bush so much as listens to Canada's suggestions.

Updates on the softwood lumber talks: the U.S. Commerce Department, apparently not having been told enough times that its tariffs are illegal, has issued a preliminary decision which could boost the tariff to 14% starting in December. Meanwhile, negotiations may soon break off now that the Cons have missed their own needless deadline.

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