NEWS
For Immediate Release
June 30, 2006

Contact: Serena Howarth

(208) 667-4641

Canadian Softwood Deal Reached

Local Timber Association Applauds "Fair Compromise"

Coeur d'Alene—Trade Ambassadors from Canada and the United States have announced agreement on a deal to resolve disputes over Canadian softwood lumber imports. Intermountain Forest Association (IFA), an organization of wood product manufacturers, forestland owners and related businesses in the northern Rockies, applauded the Agreement as a "fair compromise."

"This agreement will prove to be beneficial for forest businesses on both sides of the border," said IFA President James Riley. "It is a fair solution under current circumstances. Although this accord expires in 7 years, I am confident it will also serve as a platform for working on a permanent, long term solution. Importantly, it will also end the ongoing and complicated litigation over subsidized Canadian softwood trade policies," Riley said.

The agreement text was initialed by Canadian International Trade Minister David Emerson and U.S. Trade Representative Susan Schwab today in Geneva, Switzerland, where the two were meeting on business with the World Trade Organization.

The core terms of the agreement were established in April, and both governments have been discussing the details since then. Under the terms of this agreement, both the U.S. and Canada will suspend all lawsuits related to softwood tariffs, and Canada will implement a complicated export tax on softwood shipments to the U.S. Additionally, Canada's export tax will fluctuate based on market conditions. The agreement also governs future dispute resolution, redistribution of the U.S. tariffs to Canadian companies, and potential surges in imported Canadian lumber.

The United States has maintained that Canada currently charges below-market value for timber harvested by Canadian companies from state-owned lands, which has resulted in tariffs on imported Canadian softwood. The U.S. has collected over $4 billion in dues from Canada over the past 4 years.

Headquartered in Coeur d'Alene, the Intermountain Forest Association is an organization of wood product manufacturers, timberland owners and related businesses in the northern Rockies. The Association develops and implements solution-oriented policies aimed at securing a stable and sustainable supply of timber on public and private lands.

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