US Lumber Companies File Suit Against NAFTA
The lumber industry, which filed a similar complaint in 1994, has an uphill fight, analysts said. The U.S. government, which is named as the lead defendant in the complaint, said it would contest the lawsuit. The Canadian government said it's prepared to do the same.
At issue are rulings by NAFTA panels that said the process the U.S. used in applying tariffs on $7.6 billion a year in Canadian lumber imports violated trade rules. The panelists ordered the duties to be reworked or removed.
The lumber coalition argues in its complaint that NAFTA allows independent and sometimes foreign judges to interpret U.S. law, a move it claims is unprecedented and "violates fundamental constitutional principles."
The constitutional challenge "is an old turkey. It's got very few legs to stand on," said Andreas Lowenfeld, a professor at New York University. "If such a suit succeeded, that would be the end of NAFTA." [JR: Because NAFTA IS UNCONSTITUTIONAL!]
The lumber coalition, which includes dozens of companies, said its goal isn't to end NAFTA.
In its 47-page filing, the group states it wants rulings made under the dispute-settlement provisions of NAFTA, called Chapter 19, to be deemed illegal.
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