world news - 21.11.2002
U.S.-Canadian timber deal sought
Weyerhaeuser Co. is asking the United States to end duties on Canadian softwood lumber imports, asking Canada to levy a new export tax — and asking the two sides to work with timber companies in negotiating an end to their decades-old lumber dispute.
At a news conference in New York City, Steven Rogel, chief executive of the wood-products company based in Federal Way, offered a proposal to resolve the fight over Canadian softwood lumber, which some U.S. producers complain has an unfair advantage because Canada charges lower fees for timber rights.
But Canadian International Trade Minister Pierre Pettigrew largely dismissed Rogel’s proposal.
“We shouldn’t impose on ourselves border measures (the proposed export tax) that would actually legitimize what the Americans have been doing, which we’ve been saying for a long time is unfair,” he told the Canadian Press news service.
The U.S. Commerce Department declined immediate comment. An industry group, the Washington, D.C.-based Coalition for Fair Lumber Imports, did not return calls for comment.
Weyerhaeuser, which has operations on both sides of the border, called for an end to U.S. import duties on Canadian softwood lumber — which average 27 percent and cost Weyerhaeuser $31 million in its third quarter alone.
Instead, the company wants Canada to adopt its own export tax, with a sliding scale of fees. The Weyerhaeuser plan also calls for the two sides to drop their complaints and appeals to the World Trade Organization and instead negotiate a solution that includes restructuring the way Canada values its uncut timber to bring production costs there into parity with those in the United States.
“We are not wedded to our proposal but we are committed to a permanent solution,” said Rogel.
He contends that “a wall is being built between the U.S. and Canada. … The time has come to tear it down once and for all.”
Weyerhaeuser, one of the world’s largest wood-products companies, operates 18 softwood lumber sawmills in Canada and 27 in the United States. It employs about 10,600 people in Canada.
Rogel said the U.S. duties have done nothing to stem Canadian production, ease the oversupply of lumber nor lift slumping prices.
As a result, companies, employees and communities on both sides of the border are hurting through mill closures and layoffs.
In addition, relations between Canada and the United States — each other’s largest trading partner — are worsening.
The company plans to take its proposal to various parties, including the U.S. Department of Commerce, Canadian national and provincial governments, timber companies and others.
Pettigrew, the trade minister, said Canada will remain open to negotiations but plans to pursue its options through trade tribunals as well.
“Both sides need to work together for an enduring solution,” Rogel said.
See also:
- — Sting's forest lobby attacks 'green' timber trade
- — Environmentalists, unions challenge B.C. raw log export program
- — Ilim Restructuring
- — Small furniture firms battle to keep doors open
- — DREMA 2002: International Trade Fair of Woodworking Machines and Tools