Subsidy Battle Goes To ITC

A final ruling by the U.S. Commerce Department that Canada unfairly subsidizes softwood imported by the U.S. has kicked offmore legal maneuvering.

The International Trade Commission is due to make a final ding in early July to determine if American producers are injured by Canadian lumber imports. Under U.S. trade laws, idury has to be found by the ITC before countervailing duties can be imposed on Canadian shipments. T\e 14.4% of valuesetinthe Commerce Deparfnent's preliminary ruling last March was cut to 6.51% nthe ruling May 15.

Canadian Trade Minister Michael Wilson called for a review of the ruling under a dispute settlement provision of the U.S. Canada free trade agreement. This appeal could take as long as 315 days with a second appeal possible if the ITC rules in favor of the U.S.

Last March'sruling claimed Canada's ban on log exporting artificially lowers the costs of Canadian lumber producers. The final ruling conceded that the log ban affects only the coastal and tidewater forests of British Columbia. Canada maintains the ban is intended to conserve resources. Tom Buell. chair- man of the Canadian Forest Industries Council, called the Commerce Department's decision on log exports "hypocritical" since the U.S. alsobans exporting logs from public lands.

Buell wamedany duty imposed will increase lumber costs in the U.S. This opinion is shared by many lumber retailers including the National Lumber and Building Material Dealers Association which asked the Coalition for Fair Lumber Imports, an industry group, to drop their claim that Canadian lumber exports are subsidized.

NAWLA/NBMDA Merger Off

The planned merger of the North American Wholesale Lumber Association and the National Building Material Distributors Association collapsed when NAWLA members at an open forum held at their annual convention soundly nixed a formal vote, thus tabling any immediate action. The convention in Colorado Springs, Co., was held late May; full details in the next issue.

In an exclusive interview, NAWLA president Chuck Harris, Wholesale Wood Products, Dothan, Al., said the decision was a membership, not a board of directors, decision. Members were concerned that the lumber and product orientation of NAWLA would be dilutedby merging withNBMDA which is more concerned with the process of distribution.

Harris said no other mergers are planned, but did not rule out the possibility of a future merger for NAWLA.

AFRA To Merye Into NFPA

American Forest Resource Alliance (AFRA) will merge into the National Forest Products Association on July l. Five alliance programs will be continued on a smaller scale with a budget of $2.3 million. Surviving programs are legislative action, litigation work, technical research, communications/ public relations and grassroots networking.

AFRA board members votedfor the merger after a move to "sunset" the organization came from the large forest products firms paying most of the funding for both AFRA and NFPA.