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Canada Concedes, Will Decrease Exports

Under threat of a tariff, Canada tentatively agreed to reduce softwood lumber exports to the U.S. and allow American producers to recapture their share of the domestic market.

The deal may end a l4-year dispute in which Canada was accused of unfair trade by flooding the U.S. with government-subsidized lumber.

After over a year of negotiations, the countries reached an agreement in principle that would last for five years, beginning April 1, reports U.S. Trade Representative Mickey Kantor.

The pact reportedly allows British Columbia to ship up to 9 billion bd. ft. of softwood lumber annually to the U.S. without penalty. Additional exports are subject to a $50-per-1000 ft. tax for the first 250 million ft. and $ I 00-per- 1000 thereafter.

Quebec, Ontario and Alberta will raise stumpage fees by $100 million, with additional increases assessed if Quebec's shipments exceed 89Vo.

Although Canadian officials have long disputed the U.S. view that its timber producers received government aid. Kantor said the concession will provide "necessary relief and the level playing field that U.S. companies and workers have fought for."

Despite the decrease in the volume of less expensive imported wood, Kantor said, U.S. home builders and buyers would see a "negligible, if any" effect on new home prices since builders are now using more alternative materials in housing construction.

Yet, the restrictions on the amount of cheaper Canadian lumber sold in the U.S. do remove some pressure for

Hedlund To Sunriver

Hedlund Lumber Co., Sacramento, Ca., is changing its name and moving to Sunriver, Or.

The Hedlund name and the name of the parent company, Steiner Lumber Co., are being absorbed into sister company Sunriver Home Center, Inc., Sunriver, Or. which becomes corporate and administration headquarters. Sunriver is also a lumber yard and an 1 1-year-old full-service Ace Hardware retail store that will expand into cedar staining and window and building packages for the central Oregon market, according to Jeff Browning, secretary-treasurer of the corporation.

U.S. firms to keep prices low. And, if Canada exceeds its quotas and must pay tariffs on exports, contractors also end up paying more for that wood.

Kantor said if Canada fails to live up to the terms of the agreement, the U.S. will initiate trade sanctions.

For years, attempts to settle the dispute have been snarled by bitter political debate, litigation and tariffs. Officials from Washington and Ottawa have negotiated sporadically on their own over the last 14 months.

During a transition period, the former Hedlund operation will be known as Sunriver Siding and Windows, becoming Sunriver Home Center, Inc. later this year or next. The pres. of the consolidated firm is Gary Steiner.

The Sacramento retail yard Hedlund operated at 5500 Roseville Rd. has closed. A small sales and warehouse staff continues to service the Northern California and Nevada markets for windows and lumber. Eventually, all lumber sales will be handled out of Oregon headquarters, servicing both old and new tenitories.