Smith Urges Ambassador Zoellick to Protect U.S. Lumber Industry Against Unfair Trade Practices

March 5, 2003

Smith Urges Ambassador Zoellick to Protect U.S. Lumber Industry Against Unfair Trade Practices

WASHINGTON, D.C.– Today, Senator Gordon Smith (R-OR) urged U.S. Trade Representative Robert Zoellick to pursue a strong and enforceable trade agreement that ensures fair marketing opportunities for lumber producers. Smith raised his concerns at a Senate Finance Committee hearing. Yesterday, Smith met personally with Ambassador Zoellick to stress the importance of trade laws and remedies with regard to the U.S.-Canadian softwood lumber trade.

"The Bush Administration must reach a quick and acceptable settlement with Canada so that our mills stay open, jobs are protected, and a free market is restored," said Smith "The Canadian government provides anti-competitive supports for its lumber industry which put American producers at an unfair disadvantage. No matter how it is characterized by either side, the U.S. and Canada have very different systems for marketing public timber to private industry."

A 1996 softwood lumber agreement between the U.S. and Canada capped Canadian tax-free exports to the United States at 14.7 billion board feet annually. As part of the agreement, the U.S. government also agreed not to initiate any trade action against Canadian imports of softwood lumber for five years. The agreement expired in March 2001.

Since the expiration of the agreement, Canada has violated the principles of free trade by subsidizing softwood exports and dumping in the U.S. market. The lack of market principles in Canadian forest management systems is highly detrimental to the Oregon forest products industry.

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