[Congressional Record Volume 147, Number 82 (Wednesday, June 13, 2001)]
[House]
[Pages H3126-H3127]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    INTRODUCTION OF BIPARTISAN SOFTWOOD LUMBER FAIR COMPETITION ACT

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Oregon (Mr. DeFazio) is recognized for 5 minutes.
  Mr. DeFAZIO. Madam Speaker, I would certainly echo the comments of 
those that preceded me in the well about the contributions of organized 
labor to all working people in the United States and join them in 
supporting their efforts. But I come to talk about a specific sector of 
the economy and specific workers, that is, people who work in the 
lumber and wood products industry.
  Back in the 1980s, the United States Department of Commerce found 
that Canadian lumber is heavily subsidized.

                              {time}  1700

  The Reagan, Bush I and the Clinton administrations have all found the 
Canadian lumber is subsidized. Numerous Canadian sources, including the 
BC Forest Resources Commission, Canadian Private Wood Owners 
Association, Maritime Lumber Bureau have also found those subsidies. 
That is not in question.
  The subsidies come in three primary forms. The provincial government 
owns 95 percent of the timberland in Canada and administratively sets 
the price of timber one-quarter to one-third of its market value.
  Agreements allow Canadian mills long-term access to timberland in 
exchange for cutting to subsidize the timber. No matter what the market 
conditions are, they are required to harvest and process the lumber, 
and they lose their licenses if they do not do that.
  Finally, they are really back 50 years ago or more in terms of their 
environmental practices. They regularly violate principles set by the 
Canadian national government in terms of streamside buffers; drag logs 
through the streams and destroy precious salmon habitat. The results of 
that are being reflected in crashing salmon runs off of Canada and 
Alaska.
  In response, in 1996, the United States and Canada negotiated a 
softwood lumber agreement. Unfortunately, that has expired and 
negotiations to extend or revise the agreement have not occurred 
despite the fact that many of us have contacted the current 
administration and asked them to make this a high priority.
  We have seen statistics that say a mere 5 percent increase in lumber 
imports, subsidized lumber imports, from Canada could cost 8,000 jobs 
in the Pacific Northwest. So we feel this is of the utmost priority.
  I am introducing legislation tomorrow with the gentleman from Georgia 
(Mr. Norwood), bipartisan legislation, the Softwood Lumber Fair 
Competition Act, and I really appreciate the fact that the gentleman 
from Georgia (Mr. Norwood) has joined me as the chief Republican 
sponsor. It also will have support and introduction of a number of 
other Democrats and Republicans from various parts of the United 
States.
  If Canada will not do the right thing and come back to the 
negotiating table and the Bush administration will not take the 
initiative, then Congress must force the issues through enactment of 
such measures as the Softwood Lumber Fair Competition Act.
  Our legislation is based on the import relief provisions of the Steel 
Revitalization Act, which has 212 bipartisan cosponsors. The 
legislation requires that the President take necessary steps by 
imposing quotas, tariff surcharges, negotiate voluntary export 
restraint

[[Page H3127]]

agreements or other measures when softwood lumber imports from Canada 
exceed the average volume imported monthly during the 24-month period 
preceding December 1995.
  This will help ensure that the U.S. industry and workers are not 
harmed by unfair dumping of subsidized Canadian lumber.
  The job losses and mill closures will accelerate if the United States 
does not stand up for our working families and demand that Canada trade 
fairly.
  With the sluggish U.S. economy, we simply cannot afford to sacrifice 
more U.S. jobs and U.S. industries to unfair trade by the Canadians.
  The President has repeatedly assured Congress that his administration 
will vigorously enforce U.S. trade laws. I was pleased with his recent 
decision to pursue a Section 201 case on steel dumping. Now it is time 
for the President to do more on softwood lumber issues. It has been 
nearly 3 months since the agreement expired, and 3 months since a 
number of us contacted the administration to tell them how urgent it 
was that they pursue these negotiations. He needs to bring the 
Canadians back to the negotiating table and work out an agreement which 
both sides can live with similar to the 1996 agreement.
  The choice is clear. Canada needs to come back to the negotiating 
table with a good faith effort or Congress must take action.

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