Canadian Lumber Tariffs Delayed But Lawmakers Vow To Retaliate If There’s No Agreement Soon

The United States will wait at least two weeks before retaliating in a lumber dispute with Canada, Trade Representative Mickey Kantor said Thursday.

Meanwhile, U.S. timber industry officials said they would seek a tariff on the imports from the north if an agreement isn’t worked out by Feb. 15.

Sens. Larry Craig, R-Idaho, and Max Baucus, D-Mont., said Kantor assured them of swift retaliation if Canada failed to agree this month to slow the flow of cheaper-priced wood across the U.S. border.

“Ambassador Kantor promised me today that if the Canadians refuse a fair agreement or drag the talks out much longer, he is prepared to take tough action on his own to make sure we are treated fairly,” Baucus said.

“I am willing to wait another week or two if it is absolutely necessary,” he said.

Kantor told reporters he had agreed to postpone any possible retaliation at least until after he meets here with Canada’s new trade minister, Art Eggleton, on Feb. 12 or 13.

“The negotiations are continuing to make significant progress,” Kantor said in announcing talks would continue beyond the previous deadline on Wednesday.

However, Kantor said U.S. sawmills continue to be “hard hit by an increasing and high level of Canadian lumber imports resulting from unacceptable government subsidies.

“It is time to resolve this issue in a way that provides the needed relief and the level playing field that U.S. companies and workers deserve,” he said.

“The consultations have been ongoing since March and during that time the damage caused to the U.S. industry from Canadian lumber imports has increased sharply,” he said.

Canada’s share of the U.S. softwood lumber market has grown from about 27 percent to an unprecedented 36 percent since a U.S.Canada dispute panel ordered the United States to repeal a 6.5 percent tariff on Canadian lumber imports 18 months ago.

The value of the Canadian lumber imports has risen from $2.5 billion in 1991 to $5.6 billion in 1995, at a cost of 29,000 jobs in U.S. sawmills, Kantor said.

Kantor had warned in December he would seek an import tariff if the Canadian provinces didn’t make an acceptable offer.

The Coalition for Fair Lumber Imports announced its plans for a Feb. 15 filing of a complaint for a countervailing duty.

“The subsidies are driving efficient U.S. mills out of business,” coalition chairman Mack Singleton said.