Editorial Uranium could be next on U.S. hit list

Well that was some victory we won(?) in those last-minute negotiat ions to settle that Ottawa-Washington bitter trade dispute over the imposition of U.S.-ordered taxes against our multi-billion- dollar softwood lumber industry. The very wording of the terms of surrender are akin to that of a peace treaty being imposed by a victor over the vanquished.

Little wonder that critics were calling it “an unfriendly act — bullying at its worst.” “We have been beaten”, was another of the daily press headlines. “Canadian sovereignty sacrificed,” was another. Indeed so strong has been the outcry that the federal opposition parties were demanding an early recall of parliament.

Certainly we don’t like to see this gun-at-the-head type of negotiat ing between two friendly nations. But what concerns us even more is what this settlement is likely to lead to. What export industry is next — uranium, natural gas, hydro-electric power? You name it, for this opens the door for countless other U.S. groups to emulate the successful efforts of its lumber industry to limit Canadian competition.

This battle was apparently launched over what the U.S. lumber indust ry perceived to be unfairly low stumpage dues levied on our forest industry. These, incidentally, are imposed by the various provinces — not by Ottawa — each of which strives to make its own industry just as competitive as possible. If not stumpage, the U.S. cry-babies might then come up with any number of pleas for countervail. If any export product in this country were to move on CNR lines, for instance, would that call for the imposition of a U.S. tax, for our government-owned carrier certainly does receive crown largesse? But does Uncle Sam not subsidize the American wheat farmer? Is not this precisely why we are having so much trouble selling our wonderful wheat into the world markets?

Now, just as sure as God made little green apples, beleaguered U.S. uranium miners will be putting more pressure on our $1-billion industry. Fact is, we are the world’s leading uranium producer, accounting for some 31% of the total output (85% of which we export) precisely because we have the best uranium deposits in all the world — richest and lowest cost to produce. These neither need nor receive government assistance. By any standard, U.S. producers are simply not competitive. Sure, Uncle Sam could impose protectionist measures here too. And on iron ore, steel, etc., etc. But it would be the U.S. consumer who would end up paying.

Washington’s mood, obviously, is changing, brought on in part by the frightful financial bind it faces, especially its horrendous trade deficit. (November’s alone was $19 billion in the red.) Reduction of this trade deficit has been the very cornerstone of U.S. economic policy since 1985, yet it continues to worsen. And its direct federal operating deficit keeps soaring, with an up-coming $1 trillion-dollar budget (including still another $100-million give- away to try to overthrow the government of Nicaragua by military force). Little wonder that the U.S. dollar keeps sagging and gold keeps going up. But that’s another story.

However, we do regard these latest trade restrictions as unfriendly and unjustified acts which are disturbing in the context of our broad and long-standing relationship. And they make a mockery of those so-called free-trade negotiations being carried on at the behest of our own zig-zagging federal government. Indeed this lumber deal cedes an unprecedented degree of control over Canadian industry to the United States.