DeFazio, Zinke To Push USTR To Secure Market Cap on Canada Softwood Imports in Ongoing Negotiations

The offices of Reps. Peter DeFazio, D-Ore., and Ryan Zinke, R-Mont., plan to urge U.S. Trade Representative Michael Froman to hold the line in ensuring Canadian softwood lumber imports are capped at a bilaterally agreed-upon U.S. market share, according to a letter the lawmakers plan to send to Froman next month and obtained by International Trade Today. DeFazio and Zinke said ongoing Softwood Lumber Agreement (SLA) negotiations should secure fair competition for U.S. industry, even if negotiations run until October, when a one-year reprieve on trade cases involving Canadian softwood imports expires. “Current Canadian trade practices harm U.S. producers,” the lawmakers said in a notice seeking additional supporters. “Market downcycles accelerate and deepen for U.S. producers while Canadian producers are protected from normal market fluctuations. The resulting low lumber prices force U.S. mill closures -- in effect, Canada exports its mill closures to the United States. Until Canada changes its timber system to operate on open and competitive terms, border measures to offset the Canadian market distortions remain critical to U.S. manufacturers, landholders, and communities.” The government of Canada pays stumpage to domestic companies for exported lumber, which the U.S. executive branch considers to be subsidies.