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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
|||| 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.