Canada and the US have had an ongoing trade dispute over softwood lumber that has resulted in the collection of $3.6 billion in tariffs from Canadian lumber producers. The tariffs were paid on Canadian lumber imported into the US. The WTO has been hearing litigation from both sides on the issue and if the decision leans in Canada's favor, then the tariffs paid are supposed to be returned to the Canadian lumber companies.
But Max Baucus (D, Montana) has a different idea:
A powerful U.S. senator is set to introduce legislation next week to pay American lumber companies the more than $3 billion in softwood lumber duties the Americans have collected, The Canadian Press has learned.
Why is this important? If the money gets paid out and the WTO decision comes down against the US, then the taxpayers of the US will bear the burden. Corporate welfare in a very pure form.
Under Baucus' bill, the collected tariffs would remain in U.S. Customs' escrow accounts and the cash to pay American lumber producers presumably would come out of the U.S. government's own funds.
US Government's own funds. That's your pocket and mine friends. Direct to Big Timber. $3.6 billion. In a time of record budget deficits, the US government apparently has plenty of money to subsidize timber companies. We will also show the world that trade agreements are meaningless unless they fit the ends of the US interests and we will not play fair in the area of trade.