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Layton urges retaliatory taxes over softwood lumber dispute

Last Updated: Saturday, December 3, 2005 | 8:30 PM ET

NDP Leader Jack Layton says Canada should consider taxing energy exports to the United States if Washington doesn't lift its tariffs on softwood lumber imports.

Layton said trade sanctions might be necessary if the U.S. doesn't dump the import duties that have siphoned $5 billion so far from Canadian producers of softwood lumber.

Layton focused on the softwood lumber issue Saturday during campaign stops in British Columbia, the province hit hardest by the dispute.

Federal NDP Leader Jack Layton speaks at a campaign stop in Vancouver on Saturday. (CP Photo)
Federal NDP Leader Jack Layton speaks at a campaign stop in Vancouver on Saturday. (CP Photo)

"We favour a polite, clear, neighbourly warning that Canada is prepared to impose export duties on oil and gas exports to the United States," he said.

Layton said Ottawa needed to take a tougher stand in the dispute, which is the main trade irritant between the two countries and has been winding its way through a series of dispute proceedings.

The U.S. administration has been refusing to heed several NAFTA rulings supporting Canadian claims that the tariffs were illegal – including a recent one by an international panel whose rulings were to be binding in disputes under the North American Free Trade Agreement.

Svend Robinson, candidate in the riding of Vancouver Centre, in Vancouver on Saturday.
Svend Robinson, candidate in the riding of Vancouver Centre, in Vancouver on Saturday.

The U.S. Commerce Department eventually said on Nov. 22 that it would comply with the NAFTA panel's ruling on softwood lumber, even though it strongly disagreed with it.

Many closely contested races in B.C.

Layton wasn't the only federal leader campaigning Saturday in British Columbia, which is considered a key battleground in the election. Conservative Leader Stephen Harper was also in the province, delivering a message that focused on crime and drugs.

The Tories currently hold the most seats in the province but they're facing a challenge to keep them, with many tight three-way races being fought on the Lower Mainland and Vancouver Island.

While Layton went to Vancouver to talk trade policy, he also used his visit to show support for NDP candidates in the province – including one whose decision to run sparked controversy, Svend Robinson.

In one of the most closely watched races in the province, Robinson is making a bid to unseat Liberal incumbent Hedy Fry in Vancouver Centre.

Robinson is trying to make a comeback after stepping down in 2004 as the NDP's MP for Burnaby-Douglas. He had been charged with stealing a $64,000 diamond ring.

He pleaded guilty to theft and was given a conditional discharge. Robinson later explained that he suffers from bipolar disorder.

"I made a serious mistake," he said. "I paid a price for that and it was a very heavy price. I gave up a job that I love.

"I'm back in public life. There's been huge support for that."

Robinson – who was the first MP to openly declare his homosexuality – garnered a reputation for being outspoken after being elected to the House of Commons in 1979.

NDP House Leader Libby Davies admitted there were some people within the party who questioned Robinson's return – but most, she said, supported it.

Layton barely acknowledged Robinson during his news conference with B.C. candidates. But he defended Robinson's return.

"Svend Robinson took responsibility for what happened," Layton said. "He paid his price in full, respectfully to the whole process."

Liberal foe also faced controversy

Robinson's Liberal opponent is also no stranger to controversy.

Fry, a former secretary of state for multiculturalism, once announced in the House of Commons that racists were burning crosses in Prince George, B.C.

She later said she regretted her statement, which proved false, and apologized to the community.

Meanwhile, Liberal Leader Paul Martin took the day off from campaigning, but was scheduled to fly Sunday night to Newfoundland, the start of a series of East Coast stops.

Bloc Québécois Leader Gilles Duceppe and Green Party Leader Jim Harris were both in Montreal on Saturday. They joined thousands of demonstrators in a march calling for stronger action to tackle global warming.

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