[Congressional Record Volume 147, Number 177 (Wednesday, December 19, 2001)]
[Senate]
[Page S13675]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   SOFTWOOD LUMBER--A CALL TO ACTION

  Mr. BAUCUS. I rise today to focus attention on the ongoing softwood 
lumber dispute between the United States and Canada. I believe we have 
an excellent opportunity to permanently remove this blemish on our 
strong bilateral trade relationship.
  In the past 3 months, the U.S. Department of Commerce found that the 
Canadian Government unfairly subsidizes this lumber industry and then 
dumps those products in the U.S. market, both of which are prohibited 
by U.S. law. These activities have caused unprecedented upsets in the 
U.S. market, resulting in record low prices, disruption in supply, mill 
closures, layoffs, people out of work.
  Good jobs in my State of Montana and across the Nation have been put 
at risk by Canada's foul play. Now is the time to bring this matter to 
resolution once and for all. The U.S. negotiators have a meeting with 
their Canadian counterparts to work out what is a desirable solution.
  As I have stated many times before, this solution must completely 
offset the subsidies and dumping. It must bring true competition to the 
marketplace and must take into consideration the cross-border and 
environmental issues with the objective of a truly level playing field.
  With that said, the offers of our neighbors to the north have been, 
to date, short of the mark. If we are serious about resolving the 
issue, the Canadians need to put something on the table, something that 
reflects a true, open, competitive market for softwood lumber. Some in 
Canada would prefer to let international tribunals decide this matter. 
I think they misjudge both the legal strength of their position and the 
underlying merits of their case. At no other time in history have the 
facts been so squarely in favor of the U.S. industry--no other time in 
the many years this dispute has been ongoing. At no other time have we 
been so close to a detente. Let's not forget, many of the reforms are 
beneficial and cost effective to the Canadian softwood industry as well 
as to Canadian taxpayers.
  That said, the clock is ticking. Unfair Canadian lumber imports are 
hurting our American producers. In a regrettable setback on December 
15, the preliminary countervailing duties expired temporarily. It is my 
understanding that due to a customs reporting loophole, Canada was able 
to avoid paying payment earlier than the duties' temporary expiration. 
This is wrong. It emphasizes the need to close the gap from now until 
final determination.
  The statute does not require that this case drag on until next 
spring. There is simply no reason for further foot dragging. The U.S. 
lumber industry cannot afford to suffer further injury. Neither can our 
remanufacturers, who are at the mercy of Canadian blackmail threats to 
cut off supply if we do not support Canada's position.
  Simply put, if a decision cannot be reached in the next few weeks, 
the Commerce Department should accelerate their final determination.
  That said, I would like to begin 2002 with this matter resolved. 
After two decades of fighting, it is time for a durable solution to the 
softwood dispute. I hope our administration and my Canadian friends 
will rise to the occasion.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Iowa.

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