(Canadian Press)
A major U.S.
trade group launched a lobbying effort Thursday to repeal the contentious law that allows American companies to profit from penalties levied on Canadian imports, calling it an illegal "corporate welfare
program" that rewards inefficiency.
The so-called Byrd Amendment prompted a legal challenge from Canada in a U.S. court last week. Canada has also just started levying retaliatory surtaxes on
some U.S. products.
Now there's a concerted effort south of the border to convince American legislators to support dumping the law, which has been ruled illegal by the World Trade Organization.
"There hasn't been an organized effort across a major cross section of industry players," said Paul Nathanson, spokesman for the effort by the
Consuming Industries Trade Action Coalition.
"There's no economic or factual basis for this law. The Canadians say, and rightfully so, that the U.S. government has lost every legal case on
it so far," he said.
U.S. retail organizations say retaliatory measures from other countries are driving up the cost of those exports and making businesses less competitive.
Canada, for
instance, has imposed a 15 per cent surtax on live swine, cigarettes, oysters and some speciality fish from the United States.
"Our job is to explain to congressmen and senators that there's a
lot more companies hurt than helped by this," said Nathanson.
"It's costing money every day."
The law, named after its sponsor Senator Robert Byrd, has allowed more than $1
billion US worth of duties imposed on products from various countries to be distributed to U.S. companies.
In addition, the U.S. government has collected about $4 billion in Canadian softwood duties
since May 2002. The money is still sitting with U.S. Customs but may yet go to American lumber companies.
"We intend to fight for repeal of the Byrd Amendment every step of the way," said
Steven Alexander, executive director of the coalition.
"(We'll) pinpoint which companies and regions are the major recipients of Byrd handouts over the years and what they are doing or not doing
with the money. We want to highlight those companies that exist solely for Byrd funds."
The group says only eight U.S. companies have received about half the duties collected so far, not counting
the penalties on Canadian softwood.
Members acknowledged that it will be an uphill battle but hope to repeal the law before the congressional session ends in 2006.
Earlier this year, two
Republican congressmen - Jim Ramstad of Minnesota and Clay Shaw of Florida introduced a bill that would kill the Byrd Amendment.
The coalition is mustering support for that bill and lobbying for a
companion bill in the Senate.
The amendment rewards U.S. firms found to have been injured by imports that the U.S. government rules were subsidized or dumped at prices below production costs. |
