Senate Finance Chair Calls for SLA Consultations with Canada
Senate Finance Committee Chairman Baucus (D) wrote a letter to U.S. Trade Representative Kirk calling on him to initiate consultations with Canada to end unfair practices that are harming the U.S. lumber industry.
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Baucus Alleges BC is Circumventing Intent of SLA
In his letter, Baucus states that the Provincial Government of British Columbia is selling government-owned timber used for softwood lumber production at firesale stumpage prices that the Softwood Lumber Agreement (SLA) reserves for salvage-grade timber.
According to the letter, these actions circumvent the intent of the SLA by artificially lowering the cost of softwood lumber production for British Columbia’s lumber producers and effectively nullifying the effect of the export charges that the SLA mandates.
Baucus states that the Government of British Columbia’s recent steps to address the issue by changing its timber pricing system are by its own admission “revenue neutral” and do not adequately address this circumvention.
Baucus Urges Kirk to Initiate Consultations with Canada, Enforce Obligations
Baucus urges Kirk to initiate consultations immediately with Canada under the SLA to remedy this circumvention and to continue enforcing Canada’s obligations under the Agreement.
News release and letter (dated 08/18/10) available via email by sending a request to documents@brokerpower.com