Outlook For Timber Agreement Improves

Inland Northwest sawmills may see a ray of hope in breakthrough negotiations over lumber imports between United States and Canada.

Idaho Republican Sen. Larry Craig joined other senators and representatives in a meeting with Trade Ambassador Mickey Kantor Tuesday. Kantor said that the Canadians put two concessions on the negotiating table Friday.

The two sides have been negotiating for 11 months, meeting more than 30 times, Craig said from Washington, D.C. The U.S. dropped a tariff on Canadian lumber imports 18 months ago after a three-member trade panel ruled it illegal. Two of the panel members were Canadian.

Sawmills in the Northwest have suffered as the Canadians have upped their share of the U.S. market to 35 percent from 27 percent since 1991.

Timber producers large and small point to cheap Canadian lumber as a cause of their economic troubles. From Colville, Wash., to Grangeville, Idaho, mills have shut down or dramatically shrunk operations in the past two years.

Kantor told Craig that the two sides hope to have a new agreement in writing before the end of January.

“If that could not materialize within a month, there would be a deadline set,” Craig said. “After that, Kantor said the U.S. would move ahead to impose trade restrictions on Canada.”

The sanctions would likely affect the pricing of Canadian lumber, Craig said. But he remains optimistic that a trade deal will come together.

“If we do impose sanctions against them unilaterally, the trade laws are such that it will take them 9-10 months before the Canadians can do much about it,” Craig said. “It is to their benefit as well as ours to come to a long-term solution to this problem.”

Logs coming from salvage operations approved by President Clinton have benefited some Inland Northwest mills, Craig said.

Clinton has said he will try to amend the bill that allowed those logging operations to take place. The law suspends environmental provisions that usually apply to logging, and Clinton wants to change that.

“We’ve told Clinton that’s off the table,” Craig said. “We’ve fought hard to bring some relief with that act.”

, DataTimes