2002 Legislation
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SENATE JOINT MEMORIAL NO. 113 – Canadian Lumber/subsidy end request

SENATE JOINT MEMORIAL NO. 113

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SJM113.........................................by RESOURCES AND ENVIRONMENT
CANADIAN LUMBER - Stating findings of the Legislature and requesting that
President Bush direct the Office of the U.S. Trade Representative and the
Secretary of Commerce to make the problem of subsidized Canadian lumber
imports a top priority and to take every possible action to end Canadian
Lumber subsidy practices and to offset subsidies pending reform; and to
request that if Canada will not reach an agreement, the U.S. government
should enforce trade laws against subsidized and dumped imports, explore
all options to stop unfairly traded imports and require payment of damages.
                                                                        
03/07    Senate intro - 1st rdg - to printing
03/08    Rpt prt - to 10th Ord
03/11    10th ord - ADOPTED - voice vote
    Title apvd - to House
03/12    House intro - 1st rdg - to Res/Con

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                               SENATE JOINT MEMORIAL NO. 113
                                                                        
                           BY RESOURCES AND ENVIRONMENT COMMITTEE
                                                                        
  1
  2                                   A JOINT MEMORIAL
  3    TO THE PRESIDENT OF THE UNITED STATES, SENATE AND HOUSE OF REPRESENTATIVES  OF
  4        THE  UNITED STATES IN CONGRESS ASSEMBLED, AND TO THE CONGRESSIONAL DELEGA-
  5        TION REPRESENTING THE STATE OF IDAHO IN THE CONGRESS OF THE UNITED STATES.
                                                                        
  6        We, your Memorialists, the Senate and the House of Representatives of  the
  7    State  of  Idaho  assembled  in  the Second Regular Session of the Fifty-sixth
  8    Idaho Legislature, do hereby respectfully represent that:
                                                                        
  9        WHEREAS, the Softwood Lumber Agreement entered into by the U.S. and Canada
 10    in 1996, expired in March 2001; and
 11        WHEREAS, the agreement was originally crafted based on the fact  that  the
 12    provinces of Canada, which own most Canadian timber, sell timber at prices set
 13    below market value by the provincial governments; and
 14        WHEREAS, the Canadian governments unfairly subsidize timber sales to main-
 15    tain full employment at the expense of U.S. softwood lumber producers; and
 16        WHEREAS,  these  practices  have fueled shipments to the U.S. to the point
 17    that subsidized Canadian imports have reached record levels  and  resulted  in
 18    Canadian control over one-third of the U.S. softwood lumber market; and
 19        WHEREAS,  subsidized Canadian lumber imports have gained sales volume from
 20    U.S. lumber companies, depressed U.S. lumber prices, eliminated  thousands  of
 21    U.S.  jobs,  and further undermined the stability of already endangered timber
 22    communities; and
 23        WHEREAS, on April 2, 2001, the U.S. Coalition  for  Fair  Lumber  Imports,
 24    filed  a  petition  seeking  countervailing duties on Canadian softwood lumber
 25    imports, alleging unfairly subsidized and dumped imports; and
 26        WHEREAS, following initial investigation based on the petition,  the  U.S.
 27    Department of Commerce issued a preliminary ruling in August 2001, that Canada
 28    subsidizes  softwood  lumber,  distorting the U.S. softwood lumber market, and
 29    injuring U.S. sawmills and their employees. As a result of this  finding,  the
 30    Department  set  a  preliminary  duty  at 19.31 percent to offset unfair trade
 31    practices; and
 32        WHEREAS, in October 2001, the U.S. Department of Commerce issued its  pre-
 33    liminary  determination  in  the  antidumping investigation, finding that pro-
 34    ducers and exporters of softwood lumber from Canada have  sold  their  product
 35    below  fair  market  value.  As a result of this determination, the Department
 36    imposed an antidumping duty of  12.58  percent  on  Canadian  softwood  lumber
 37    imports; and
 38        WHEREAS, the U.S. Department of Commerce is due to complete its investiga-
 39    tion  into  the  allegations in mid to late March 2002. In the meantime, talks
 40    are proceeding between the U.S. and Canada in an attempt to  reach  a  resolu-
 41    tion; and
 42        WHEREAS,  the  U.S. lumber industry has repeatedly requested that Canadian
 43    provincial governments reform their policies, such as their  stumpage,  tenure
 44    and pricing practices, to permit true open competition; and
                                                                        
                                           2
                                                                        
  1        WHEREAS,  these decisions should send a clear signal to Canada that unfair
  2    trade will not be tolerated and that the Canadian  government  must  begin  to
  3    implement necessary reform.
  4        NOW,  THEREFORE, BE IT RESOLVED, by the members of the Second Regular Ses-
  5    sion of the Fifty-sixth Idaho Legislature, the Senate and the House of  Repre-
  6    sentatives  concurring  therein,  that  we respectfully request that President
  7    Bush direct the Office of the U.S. Trade Representative and the  Secretary  of
  8    Commerce  to make the problem of subsidized Canadian lumber imports a top pri-
  9    ority and to take every possible action to end Canadian lumber  subsidy  prac-
 10    tices  through  open  and competitive sales of timber and logs for fair market
 11    value. In the event Canada will not agree to end  the  subsidies  immediately,
 12    the  subsidies  must  be  offset  pending  reform. If Canada will not reach an
 13    agreement, we ask the U.S. government to continue to vigorously, promptly  and
 14    fully enforce trade laws against subsidized and dumped imports, to explore all
 15    options  to  stop  unfairly  traded  imports,  to limit the injury to the U.S.
 16    industry during the pendency of any further negotiations or  actions,  and  to
 17    require  payment  of  damages  to U.S. companies injured as a result of unfair
 18    trade practices.
 19        BE IT FURTHER RESOLVED that the Secretary of the Senate  be,  and  she  is
 20    hereby authorized and directed to forward a copy of this Memorial to President
 21    George W. Bush, to the President of the Senate and the Speaker of the House of
 22    Representatives of Congress, and the congressional delegation representing the
 23    State of Idaho in the Congress of the United States.