[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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