Lawmakers Press for Cap in Softwood Negotiations with Canada as End of Dispute Ban Approaches
Forty-one House lawmakers on Sept. 28 sent a bipartisan letter urging U.S. Trade Representative Michael Froman ensure bilateral negotiations over Canadian softwood lumber shipments result in imports being capped at an established U.S. market share (here). Led by Reps. Peter DeFazio, D-Ore., and Ryan Zinke, R-Mont. (see 1608050022), the letter said ongoing Softwood Lumber Agreement (SLA) negotiations should secure fair competition for U.S. industry, even if negotiations were to run past Oct. 13, the date a one-year reprieve on trade cases involving Canadian softwood imports will end. The last bilateral Softwood Lumber Agreement, which lapsed in October 2015, dictated a full-year ban on trade cases following its expiration. Froman and Acting Deputy U.S. Trade Representative Matthew Vogel will meet in Toronto Oct. 5 with Canadian Trade Minister Chrystia Freeland and Canadian softwood lumber industry representatives in hopes of concluding a new deal, since the last bilateral Softwood Lumber Agreement has expired. Freeland said Canada is preparing for possible litigation, in case no deal is secured by Oct. 13 (see 1609160015).
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The U.S. Lumber Coalition on Sept. 30 applauded (here) the letter and pointed to the letter’s warning that, absent an effective agreement, U.S. industry could petition for remedies to offset the effects of Canadian “government subsidies.” Canadian officials said they don’t believe their government is subsidizing the softwood industry. “The U.S. lumber industry’s overarching goal is to restore an environment in which it can invest, [and] grow to its natural size without being impaired by unfairly traded imports,” U.S. Lumber said in a statement. “This will allow the domestic industry to better supply the American market and help restore the thousands of jobs lost to unfair trade.”