NY Lumber Distributor Urges Commerce Return to Softwood Lumber Negotiating Table
A New York lumber distributor sent a letter May 11 to the Commerce Department urging negotiations to begin on a new softwood lumber agreement, citing rising prices and market instability since the previous antidumping and countervailing duty suspension agreements expired in October 2015. “While this agreement is not the ultimate solution to price volatility, reenactment of the agreement will contribute to needed stability in the marketplace,” Belknap Lumber said in the letter, which was added by Commerce to the record of ongoing AD/CVD administrative reviews on softwood lumber from Canada on May 12.
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“Under the previous agreement, Canadian softwood lumber shipped to the United States was subject to export charges and quota limitations when the price of U.S. softwood products fell below a certain level,” the letter said. “From 2006-2015, this agreement helped foster a period of stability in the U.S. lumber market and strengthened our relationship with a critical North American trade partner.”
AD/CV duties that resumed following investigations conducted in 2017 “have contributed to concerning cost increases for U.S. small businesses and consumers that rely on a steady supply of softwood lumber from Canada when domestic production cannot meet demand,” the letter said. “The impact of these duties is particularly acute as our economy continues to experience record-high lumber prices and supply shortages which threatens the availability of affordable housing for millions of Americans.”
Ryan Majerus, deputy assistant secretary for policy and negotiations at Commerce, responded to Belknap’s letter on May 11. “Commerce recognizes that prices have remained high during this time of significant and unprecedented demand for lumber in the United States,” Majerus said. “However, the COVID-19 virus' impact on labor forces -- both in terms of people getting sick and those preferring to stay home rather than risk health issues at the mill -- continues to be felt today. Additionally, there is evidence that U.S. lumber production capacity continues to increase.”
Majerus said the Office of the U.S. Trade Representative would take the lead in any new softwood lumber negotiations. He said, “Commerce is currently conducting reviews of both of these orders to determine the actual amount of dumping and subsidization during subsequent time periods and I can assure you that Commerce will consider all information and interested parties’ comments on the record prior to issuing its final results. Commerce will continue to conduct all AD/CVD proceedings in a fair and transparent manner in accordance with U.S. laws and regulations.”