The CEO Poll: Tit-for-tat
Joe Castaldo
Canadian Business Online
June 15, 2009
Take legal action against the U.S. for its forestry subsidies, say Canadian CEOs.
The U.S. government is providing a multi-billion dollar subsidy for its forestry industry, much to the dismay of the struggling Canadian forestry companies. But a group of Canadian CEOs polled recently by COMPAS Inc. think the federal government is on the right track in terms of planning to take legal action against the U.S. on this matter at the World Trade Organization.
A majority of the 105 respondents believe the Canadian government should offer the domestic forestry industry a similar subsidy to the one offered by the U.S. government, which allows companies a hefty tax rebate for using environmentally friendly fuels. U.S. pulp mills realized they could qualify for the subsidy by adding diesel to black liquor, a byproduct of pulp and paper manufacturing traditionally used for heating and energy.
“You have to match the subsidy for us to remain in the game,” wrote one respondent. “We seem to fall all over ourselves to save auto industry jobs. Time to do something for the forestry industry.” (Shortly after this poll was conducted rumours the feds plan to establish a $1-billion forestry-aid package emerged.)
But even more of the CEOs want to see strong lobbying efforts in the U.S. Congress, and legal action at the WTO. The thought of starting a large-scale public relations campaign to appeal to American citizens received the least amount of support form the respondents.
An anti-American streak ran through some of the comments provided by the CEOs. “It is nauseating to watch the Americans bullying us with illegal tariffs and quotas and then turning around to give their companies subsidies with impunity,” wrote one panelist. “The only cure for any bully is when the victim finally says enough.”
But another respondent saw the dispute as more evidence of why Canada and the U.S. need to work more closely together. “Until the economy improves, every effort will be taken by both countries to protect their economy as best they can,” wrote the CEO. “It is a question of survival. The above is just one other reason to bring the U.S. and Canada closer economically, politically and through a combined fiscal policy.”
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