U.S. ToCut Canadian Softwood Tariffs

While reiterating that it disagreed with the rationale behind the ruling, the U.S. Commerce Department has agreed to obey a NAFTA dispute settlement panel's mandate to severely cut tariffs on imports of Canadian softwood lumber.

The U.S. vowed to reduce punitive duties from 18.87o to less than l%. Separate antidumping duties, which average about 47a, are unaffected.

The U.S., however, said it still has the right to appeal NAFTA's ruling, which it calls unfair. "We start off with a premise that Canada subsidizes lumber," said John Sullivan, general counsel for the Commerce Department. "That's been our department's decision, and we have been working off that."

He said the U.S. plans to file a motion for clarification to force the NAFTA panel to better explain its decision. In the meantime. it will continue to collect duties.

Steve Swanson, chairman of the Coalition for Fair Lumber Imports, insists that the panel's decision was based on incorrect calculations. And.

he fears that "lifting the countervailing duty would be devastating to U.S. lumber companies, workers, their communities, and to millions of private timberland owners across the United States."

Buyer Taking G-P Private

Georgia-Pacific Corp. has agreed to be acquired by privately-held Koch Industries for $13.2 billion in cash and assumption of $7.8 billion in debt.

G-P will retain its name, independent management, and Atlanta headquarters, operating as a wholly owned subsidiary. The hope is that private ownership will better allow G-P to withstand the cyclical naure of commodities.

Wichita, Ks.-based Koch, whose other subsidiaries include pulp, paper, asphalt, chemicals, oil, natural gas and securities, will become the largest privately held firm in the U.S.

The deal, subject to regulatory approval, is expected to close by the end of the year.

G-P c.e.o. Pete Correll, who faces mandatory retirement upon turning 65 in April, will join Koch's board to assist with the transition. Koch will then name a new president and c.e.o. to head G-P.

The two companies first began working together l8 months ago when Koch purchased two G-P pulp mills in the Southeast.

Depot Grows In Inland Empire

Home Depot plans to build 30 new stores in Southern California's Inland Empire.

"There's an unprecedented amount of housing growth going on in the Inland Empire right now," said George Ray, the chain's real estate manager for this region. "The market is exploding."

Ten stores are either under construction or planned for the area, which includes Riverside and San Bernardino counties, with 20 more sites to be announced over the next three years.

Construction has already begun in Beaumont, Lake Elsinore, Fontana, Victorville and Apple Valley. Before the end of 2006, construction will start in French Valley, Yucca Valley, Barstow and another store in Fontana.

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