Batt Sends President A Message

Gov. Phil Batt sent a letter to President Clinton on Wednesday calling for action against low-priced Canadian lumber that’s flooding into the United States, depressing timber prices.

Batt’s letter came within a week of a similar letter from Montana Gov. Marc Racicot.

“The Canadian imports are having a pretty significant impact on the timber industry, especially in northern and central Idaho,” said Amy Kleiner, Batt’s spokeswoman. “I think he wants to add some Idaho urgency behind the administration’s attempts to straighten it out.”

Canadian lumber imports made up 27 percent of the U.S. market in 1991. In 1995, the figure rose to 36 percent, partly because of the removal of an export tax.

Batt, in his letter to Clinton, called on the administration to:

Set a Jan. 31 deadline for consultations with Canada over the issue.

Announce a temporary duty on Canadian lumber as of that date, if no new agreement is reached.

Permit duties to be imposed retroactively and prevent any stockpiling in the United States before an agreement is reached.

Renegotiate the dispute resolution portion of the U.S.-Canada Free Trade Agreement.

“Idaho mills are shutting down today,” Batt wrote. “Quick resolution of this issue is vital to our economy.”

Joe Hinson, of the Coeur d’Alene-based Intermountain Forest Industry Association, said his group suggested the letter.

“This is part of a larger effort we think needs to be mounted with governors and state legislatures not only in Idaho, but other timberproducing states, to make sure our trade delegation and the Canadians understand the seriousness of the situation,” Hinson said Wednesday.

Lumber prices have dropped to around their mid-1980s level, Hinson said. But production costs, and the costs Idaho mills must pay for raw logs, remain high.

“We have a lot of very expensive timber under contract, and very low lumber prices brought on by the influx of the Canadian lumber,” Hinson said. “Mills are hurting.”

Kevin Boling, director of public affairs for Potlatch Corp., said his company is “very pleased” that Batt sent the strongly worded letter.

Canada won’t export logs, just finished lumber, he said. Its governmental policies are far more favorable to the timber industry than those in the United States.

Wednesday’s letter was the second Batt has sent to Clinton in a week.

Last Thursday, Batt wrote to Clinton to express disappointment over the president’s decision to veto a welfare reform bill, and urge action on welfare reform.

, DataTimes