Knock on wood

Scripps Howard: Most Americans were probably unaware that there was a long-running dispute with Canada over softwood lumber, but it was a big deal in Canada, was souring trade relations with our largest trading partner and, finally, didn't reflect well on the United States.
The United States and Canada regularly squabble over softwood-lumber prices, but matters turned seriously ugly in 2001 when Washington slapped punitive tariffs, initially as high as 27 percent, on imported Canadian lumber.
The ostensible reason was that artificially low prices charged to Canadian companies for harvesting on public lands constituted an illegal subsidy. And domestic U.S. timber companies didn't like the competition.
Obstinate
The Canadians challenged the tariffs -- under the North American Free Trade Agreement, before the World Trade Organization, before the U.S. Court of International Trade -- and the United States lost virtually every step of the way. But Washington was obstinate, and although the tariff was reduced, it remained in force.
However, personalities in politics matter. According to the Canadian Press, the break in the deadlock occurred with a condolence call over the death of four Canadian soldiers in Afghanistan from President Bush to new Canadian Prime Minister Stephen Harper. The talk turned to the lumber dispute and the two leaders resolved to bring it to an end, something that very likely would not have occurred between Bush and Harper's two immediate predecessors.
Thus in five days, a dispute that had lasted five years was settled and the agreement was announced last Thursday. It's not perfect and falls well short of the ideal of free trade, but it does end the dispute, at least for the seven-year life of the agreement.
If the Canadian exports of softwood lumber exceed its traditional 34 percent share of the U.S. market, export taxes kick in to keep the sales in check. Similarly, if prices drop below a certain level, export taxes kick in to maintain price levels