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Wyden to Work With US Industry in Legal Proceedings if no Softwood Lumber Deal Concluded

As the Oct. 12 start date for potential litigation between U.S. and Canadian entities over the bilateral softwood lumber trade lingers in the absence of a new Softwood Lumber Agreement (SLA), Oregon mills and workers have expressed concern to Sen. Ron Wyden, D-Ore., about harms brought on by “a flood of subsidized Canadian lumber” being shipped into the U.S., Wyden’s office said (here). “Beginning on October 12, U.S. workers and producers will have the option of bringing new trade cases under U.S. law to address the harmful effects of subsidized Canadian lumber on American producers, workers and communities in Oregon and across the nation,” Wyden said in a statement. “Should new cases be filed, I will continue to fight to ensure that America’s trade laws are fully enforced. That includes strengthened provisions that were included in trade enforcement laws I successfully fought to pass this year.”

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Wyden’s office said Canadian and U.S. negotiators met with U.S. industry members last week in hopes of closing in on another bilateral SLA after the last one expired in October 2015, setting a one-year clock prohibiting case filings related to U.S.-Canada softwood trade, as government officials work on a new deal. Wyden said he hopes Canadian government officials left last week’s meetings realizing that the U.S. negotiating position reflects the perspectives of mills across the U.S. Reps. Peter DeFazio, D-Ore., and Ryan Zinke, R-Mont., plan to send a letter in September to U.S. Trade Representative Michael Froman urging the Obama administration to ensure Canadian softwood imports are capped at a bilaterally agreed-upon U.S. market share (see 1608050022).

A spokeswoman for the Canadian Embassy in Washington said that while "negotiations continue," she couldn't confirm a date for the next round of talks, adding that the softwood issue is "a top priority for the Government of Canada." Last month, a group of 25 senators led by Wyden and Sen. Mike Crapo, R-Idaho, sent a letter to Froman urging the limitation on imports of Canadian softwood products to a certain U.S. market share in any SLA (see 1607190028). Later in July, Canadian Ambassador to the U.S. David MacNaughton challenged the senators’ claims that Canadian lumber imports have hurt U.S. industry over the last several years (see 1607210014). The Office of the U.S. Trade Representative didn’t immediately comment.