Good news $$ March 28, 2006 March 28, 2006 - With U.S. consumers and Canadian lumber producers poised to achieve a final victory in the cross-border lumber dispute, the National Association of Home Builders (NAHB) today called on the Canadian government to hold firm in pursuing its legal challenges.
“NAFTA panels have repeatedly and unanimously ruled that Canadian producers are not subsidized and that U.S. lumber producers are not threatened with injury from Canadian softwood lumber imports,” said Jerry Howard, executive vice president and CEO of NAHB. “The best way to overturn the duties, achieve free and unfettered access to U.S. markets, and receive a complete refund of the billions of dollars that Canadian firms have paid to date is for
Ottawa to continue to pursue its legal cases to their conclusion.”
Despite Canada’s strong legal standing, Canadian government officials have recently indicated they plan to enter into negotiations with their U.S. counterparts that could involve quotas or other new border barriers on Canadian lumber shipments.
“With free trade in the offing, it makes no sense for Canada to negotiate new trade barriers, particularly one that involves quotas,” said Howard. “Under a quota, Canadian firms would continue to lose market share to suppliers from Europe and elsewhere. And by restricting supplies and causing huge price volatility, quotas would be the worst outcome for American consumers.”
If new trade barriers were to limit Canadian lumber shipments into the U.S., Howard said that builders will naturally seek alternative lumber sources, and that NAHB will work diligently to aid their efforts.
“From a policy perspective, as our members look to access a steady supply of lumber, we will work with builders in all 50 states and with the U.S. government to increase the supply of German and Swedish timber, and we will explore options to import Russian softwood from the Siberian forests. In addition, as builders seek to move from lumber to steel and other building materials and construction techniques, we will assist them in this endeavor.”
The U.S. is expected to exhaust all its legal challenges within the next several months, at which time the Administration will have no alternative other than to roll back the tariffs and refund all duties paid out by Canadian firms.
Furthermore, nearly 50 members of the U.S. House of Representatives sent a letter to President Bush last year urging the Administration to abide by its legal obligations under NAFTA by rescinding the tariffs and returning to Canada all the duties collected.
“Unfortunately, Canada's willingness to return to the bargaining table sends a conflicting message to Capitol Hill – namely that Ottawa is not serious about achieving free trade or insisting on the NAFTA dispute settlement process,” said Howard.
“We stand steadfast in our support of Canada’s legal campaign,” he added, “but resolutely oppose any proposed settlement that would restrict lumber shipments into the American market.”