Coalition for Fair Lumber Imports Comments On 1st Anniversary of U.S.-Canada Softwood Lumber Agreement
(More news)Washington, DC, October 11, 2007–The Coalition for Fair Lumber Imports today commented on the status of the U.S.-Canada Softwood Lumber Agreement on the one-year anniversary of it taking effect. The U.S. industry continues to believe that this balanced agreement represents the best alternative to the resumption of countervailing duty and antidumping duty trade litigation, and that the agreement can benefit the entire North American lumber industry. This however requires that all parties honor their commitments under the agreement. Unfortunately, Canada has failed to honor key components of the agreement by, among other things, not collecting required surge mechanism export taxes, permitting shipments beyond agreed quota levels, and providing new SLA-inconsistent subsidies to its industry.
"It is extremely disappointing that the list of Canadian violations is extensive only a year after the two trading partners entered into to this seven-to-nine year accord," said Coalition for Fair Lumber Imports Chairman Steve Swanson, adding that "Canada's extensive agreement violations have caused significant harm to U.S. companies, their workers, and communities "This pattern of non-compliance with critical parts of the agreement must stop," said Mr. Swanson.
Canadian government data indicate that Canada's under-collection of required export taxes totals at least US$123 million and that Ontario and Quebec producers have over-shipped their quotas by hundreds of millions of board feet. As the required tax and quota limits on shipments are the minimum necessary to address Canada's unfair trade practices, Canada's agreement violations severely harm the U.S. lumber industry. Significant layoffs have occurred throughout the United States, wages have been reduced, and U.S. mills are running at severely curtailed production levels or even going out of business.
"Full and effective compliance and enforcement of the agreement is necessary for it to be a lasting alternative to litigation," stated Coalition Executive Director Zoltan van Heyningen. "The Coalition remains fully committed to making the softwood lumber agreement with Canada work. But Cannada must realize that it is putting the agreement at risk by failing to comply with its terms. It is simply wrong for Canada to unilaterally and without consultation negate the balance of the agreement. Canada should immediately reverse course by honoring both the terms and the spirit of this important agreement," concluded Mr. van Heyningen.
