PRNewswire
December 21, 2005


The U.S. lumber industry expressed disappointment today after the U.S. Senate passed the Deficit Reduction Omnibus Reconciliation Act of 2005, which includes a provision to repeal the Continued Dumping and Subsidies Offset Act ("CDSOA" or "Byrd Amendment"). The CDSOA currently provides for crucial distributions of duties paid by those engaged in unfair trade which are collected on imports. The funds are disbursed to partially reimburse domestic industries injured by unfair trade.

The policy is a good one, as evidenced by the fact that the Bush
Administration has put this issue on the agenda in the WTO negotiations to
obtain international approval for this type of compensation for injury related
to unfair trade.

While the final vote is disappointing, the lumber industry appreciates the
efforts of Senator Larry Craig (R-ID) and other Senators to ensure that duties
collected on imports that enter the U.S. market before October 1, 2007 will
continue to be distributed pursuant to CDSOA. The industry would also like to
recognize and extend its appreciation to Senator Byrd (D-WV) and the more than
70 Senators who have repeatedly voiced their support for a continuation of the
CDSOA.

Coalition for Fair Lumber Imports Chairman Steve Swanson commented that
"this development is disappointing, but underscores how important the next few
years are in the lumber industry's fight to level the playing field with
Canadian producers. While this action may eventually end CDSOA, it makes clear
that duties assessed on subsidized Canadian lumber that is imported before
October 1, 2007 are to be paid to the U.S. lumber industry."

The fact remains that Canada's lumber industry receives billions of
dollars in annual subsidies derived from Canadian taxpayer-owned forest
resources. This fact has been, and continues to be, confirmed by the U.S.
Commerce Department as well as the World Trade Organization. Canada continues
to flaunt its subsidy programs, including its most recent announcement of an
additional US$1.3 billion dollars worth of taxpayer-funded subsidies just last
month.

These Canadian lumber subsidies continue to injure U.S. lumber producers
and the more than 10 million landowners and families that invest in
timberlands throughout the U.S. The strong enforcement of our fair trade laws
is a vital response to those Canadian subsidies. The Administration has
pledged to work to offset the harm caused by unfair lumber imports and the
American lumber industry will continue to work with the Administration to
reach an outcome that is fair and equitable to all parties.

"All that the U.S. industry has ever requested is an end to Canadian
lumber subsidies and dumping through open and competitive timber and log
markets," said Coalition for Fair Lumber Imports Chairman Steve Swanson. "As
has always been the case, the U.S. industry vigorously supports the U.S.
government's pursuit of a settlement based on reasonable Canadian commitments
designed to lead to requisite timber policy reform in Canada. Until then, we
will enforce our rights to relief under the U.S. trade laws."

About the Coalition for Fair Lumber Imports

The U.S. Coalition for Fair Lumber Imports is an alliance of large and
small lumber producers from around the country, joined by hundreds of
thousands of their employees, and tens of thousands of woodland owners. The
Coalition is united in opposition to Canada's unfair lumber-trade practices,
including its gross under-pricing of timber. For more information, please
visit the Coalition's website at http://www.fairlumbercoalition.org.