WASHINGTON, D.C. – The Conservative government must respond to the Southern Governors’ call on President Barack Obama to take action against Canadian lumber producers, Liberal International Trade Critic Scott Brison said today.
At their Winter Meeting in Washington D.C. on Sunday, February 22, 2009, the Southern Governors Association approved a resolution condemning “unfair” Canadian lumber imports and calling on President Obama to “take whatever action is necessary to fully address Canadian unfair trade practices in the softwood lumber sector.”
“The Harper government insists that the Canada-U.S. softwood lumber agreement has solved the problem of ongoing trade disputes for Canadian lumber producers. If yesterday’s resolution is any indication, the Harper government is wrong,” said Mr. Brison. “Canadian lumber producers need this government to defend their interests and stand up for Canadian jobs. Unfortunately, the Harper government was missing in action yesterday when Canadian producers needed it most.”
The resolution in question was sponsored by Mississippi Governor Haley Barbour. Mr. Brison met with Governor Barbour yesterday to defend Canada’s position.
A copy of Mr. Brison’s letter to the Governor is below.
—
February 23, 2009
The Honorable Haley Barbour
Governor of Mississippi
P.O. Box 139
Jackson, Mississippi
39205
Dear Governor Barbour,
It was good to see you again at the National Governors Association Winter Meeting this weekend. As per our conversation yesterday, I am writing to you to express my deep concern about the resolution on Canadian lumber imports that was approved by the Southern Governors Association at its Sunday, February 22, 2009 meeting.
The resolution condemned “unfair” Canadian lumber imports and called on President Barack Obama to “take whatever action is necessary to fully address Canadian unfair trade practices in the softwood lumber sector.”
I stress, Canada respects and is in full compliance with the Softwood Lumber Agreement between the Government of Canada and the Government of the United States of America (SLA 2006).
Due to recent challenges in the U.S. housing industry, both U.S. and Canadian lumber producers are facing historically low demand and prices. Nonetheless, Canadian producers have assumed a larger share of the reductions in output relative to the U.S. industry. In fact, since the SLA 2006 was signed in April 2006, the U.S. market share of Canadian lumber producers has plummeted from 34 percent to 29 percent.
Annually, 350,000 lumber shipments cross the border from Canada to the U.S. Canada is the largest supplier of imported lumber products to the U.S., and supplies up to one-third of the lumber used in the United States.
In general, lumber is the largest share of the cost of a new home. Given the difficult situation faced by homebuilders across the United States, any action to raise the cost of inputs and increase market uncertainty would only make matters worse. Instead, the United States and Canada should work together to stimulate the North American housing market and demand for softwood lumber products.
I look forward to working with you on this matter.
Sincerely,
Hon. Scott Brison, P.C., M.P.
Liberal Shadow Minister of International Trade
