| WASHINGTON, DC -- The nation's home builders last week applauded the efforts
of U.S. trade officials and former Montana Governor Marc Racicot, the
special U.S. representative for lumber issues, for their determination in
working with Canadian trade negotiators to seek a resolution to the
U.S./Canada softwood lumber trade dispute that protects the interests of
consumers and home builders.
"The Canadian government has taken a range of steps to make their system
more transparent and eliminate questions about whether it is market-based.
Now it is time for the U.S. producers to show that they are ready to compete
fairly," said Bobby Rayburn, a home builder from Jackson, Miss. and vice
president/secretary of the National Association of Home Builders (NAHB).
As a result of the ongoing talks, Canada's four major lumber-producing
provinces - British Columbia, Quebec, Ontario and Alberta - have all made
initial offers to modify and reform their forest management practices. Of
special note, British Columbia and Quebec, the two largest exporters, have
offered to open a portion of their provincial land to public auctions, a
system that is similar to the U.S. Talks between the two nations are
expected to resume shortly.
"We believe these actions serve the best interests of all parties -
consumers, domestic lumber producers and the Canadians," said Rayburn.
"First, they do not involve any border measures, such as quotas or tariffs,
which would only disrupt the lumber market and harm consumers by increasing
price volatility. Second, the alternative is a lawsuit that could drag on
for years. Canada has already filed suit to overturn the tariffs with the
World Trade Organization. Historically, in past lumber duty cases taken to a
final decision, the U.S. lumber industry has always lost its case."
The U.S. Commerce Department has issued preliminary rulings calling for
tariffs on Canadian softwood lumber imports amounting to 32 percent. The
department is expected to make a final ruling on the tariffs in the spring.
If the Commerce Department's final ruling calls for tariffs, and the
independent U.S. International Trade Commission also rules in favor of
tariffs, Canada could appeal to U.S. courts, a NAFTA panel, and/or the World
Trade Organization.
"A 32 percent duty would add up to $1,500 to the cost of building a new
home, acting as a hidden tax on American home buyers, renters and consumers.
This is clearly unacceptable," said Rayburn. "NAHB has opposed past
negotiated settlements that invoked any border measures such as export
taxes, quotas or tariffs because they are contrary to the interests of
consumers and the national economy. We continue to urge the two governments
to hammer out a resolution that repeals the duties and does not include any
border measures that would harm U.S. consumers and housing affordability."
This eUpdate posting by: Donna Reichle
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