The continuing quota controversy

The idea of a quota on Canadian lumber entering the United States was controversial from the start. The intervening years have made it no less so,

In 1982. the Coalition for Fair Lumber Imports, a group composed of U.S. lumber producers, made the first of three tries to have a tariff imposed on wood from Canada. They contended the Canadian government unfairly subsidized its lumber industry, putting our producers at a disadvantage,

Following the quota's implementation last year, there was confusion, price volatility and bad feelings all around. While the Coalition contends the quota is a reasonable solution to the import situation, some of its lumber customers violently disagree. Many feel the quota is a sham to artifi cially raise lumber prices for the sole benefit of the producers.

Carl Tindell, chairman of the National Lumber and Building Material Dealers Association, says, "It is time to rally our customers and colleagues to send the message that we cannot and will no longer tolerate intervention in the lumber trade to benefit only a handful of U.S. producers. We've come to the point where enough is enough. The power to change the market and affect millions of people can no longer rest in the hands of so few."

To this end. NLBMDA and the National Association of Home Builders recently formed The Alliance for Affordable American Homes, which has been active in lobbying support in Congress and demanding President Clinton repeal or revise the quota agreement.

The Western Wood Products Association disputes that the quota is the sole villain for price hikes. WWPA president Robert H. Hunt points out record Canadian lumber imports in 1996 and that only a very small volume carried the duty. Additionally, Hunt notes that due to environmental restrictions western mill production is off 3070 when demand is high.

At a time when this business faces unprecedented challenges, it's sad indeed that so much time and money is being devoted to an internal battle. rather than the business at hand.