Delays in Canadian Softwood Lumber Agreement

October 2, 2006

Random Lengths' Woodwire reported that U.S. lumber producers are incensed over what they say is a flood of Canadian lumber entering the U.S. duty-free in the wake of a month-long delay of implementation of the Softwood Lumber Agreement.  Dick Bennett, western chairman of the Coalition for Fair Lumber Imports, said coalition members are in Washington, D.C., seeking support from Congress for retaliation against Canadian lumber producers.  In a press release, Coalition Chairman Steve Swanson said, "Canada should implement its obligations under the agreement effective October 1st, even if it must do so retroactively.  Government action must be taken." Swanson concluded by saying, "The situation is intolerable and threatens the settlement."

The Canadian government announced it has extended the implementation of the Softwood Lumber Agreement to no later than November 1st.  Originally, the pact was to be implemented October 1st.  The limited extension comes after close consultation with and in direct response to requests from industry.  One prerequisite to revoking the current lumber duties and imposing an export tax on lumber shipments to the U.S. involved all Canadian companies withdrawing lawsuits filed against the U.S. regarding the lumber case.  Some companies have yet to end their legal cases.  In the meantime, the 10.8% duties will continue to be collected.

Submitted by Frank Stewart, the FLA contract lobbyist; if you have questions or comments please direct them to him at FMS@Washington-Resource.com