Commerce

Economic Impacts of the Canadian Softwood Lumber Dispute on U.S. Industries; Hearing before the Subcommittee on Trade Tourism and Economic Development of the Committee on Commerce Science and Transportation United States Senate One Hundred Ninth Congress Second Session February 14 2006 S. Hrg. 109-380

2006 · 90555 — Washington DC: U. S. Government Printing Office 2006. Presumed First Edition First printing. Wraps. Very good. iii 1 53 7 pages. The Chairman opened the hearing by saying "we’re anxious that this hearing be productive that while we explore these differences between the United States and our neighbor Canada we can better understand what is dividing us. And I think all of us hope for a new beginning with Canada. This is—however is an issue that has bedeviled people on both sides of the border. And a desire to have greater understanding and perhaps open up opportunities for further dialogue is the motive behind this hearing. So today’s hearing is going to examine the economic impacts of the Canadian softwood lumber dispute on the competitiveness and the survival of the American forest-products sector." The Chairman further stated "While I recognize the importance to consumers of an affordable supply of lumber that privilege neither outweighs nor is incompatible with trade laws of this country. Ultimately trade laws and trade agreements are to the advantage of American consumers but free trade assumes fair competition. Neither appears to be fully intact in the North American lumber market. This debate has lasted more than 20 years and we have two options before us. We can continue along a path of patchwork of tariffs and quotas or we can seek to resolve the differences in our lumber systems. We can continue to act as two countries with two markets or we can proceed as one continent with a shared market that abides by the same market rules. I realize that this dispute has strained relations with our neighbor to the north and that is most unfortunate. I deeply value our relationship with Canada which Churchill described once as the lynchpin of the English-speaking world. We share security and our democratic interests on this continent and throughout the world. Canada and the United States also have a very special economic relationship. Indeed we essentially form one large common market. For my part I want to extend to the new Canadian Government my sincere hope of a renewed North American relationship. The prompt resumption of negotiations with the United States on the softwood issue can and should be the inaugural act of that new relationship. The faster we can resolve our differences the sooner companies on both sides of the border can reassert themselves in the world market. If litigation is pursued at the expense of mutual settlement however I fear both countries and both economies will suffer. Mills on both sides of the border will continue to close and other nations beyond this continent will gladly fill in the gap. With respect to the U.S. Government I want to point out that the Canadian lumber dispute is the largest trade case in our history. This Administration and this Senator are both strong proponents of free trade. However my ability to continue supporting free-trade agreements rests upon confidence that U.S. industries are fully protected under U.S. trade law; by that meaning that they and their competitors are playing by the same rules. I applaud our officials at Commerce and USTR for the time and the gray hairs they have invested in this case and I very much look forward to their report." U. S. Government Printing Office paperback