Burns Applauds Softwood Lumber Agreement Signing
Agreement will Help Stop Trend of Mill Closings
Today, U.S. Senator Conrad Burns (R - Mont.) applauded today's signing of the U.S. - Canada Softwood Lumber Agreement by the U.S. Trade Representative (USTR) and Canadian Minister for International Trade in Ottawa.
The long-standing trade dispute over softwood lumber has required U.S. industry to fight against an influx of subsidized Canadian lumber. Softwood lumber is a product which has become a key factor in the failure of the North American Free Trade Agreement (NAFTA). NAFTA makes no provision for U.S. court review of any decisions made by a NAFTA panel. The so-called Chapter 19 dispute resolution process within NAFTA gives final authority to these NAFTA panels, which have routinely decided against U.S. interests, leaving U.S. producers with no recourse.
Senator Burns, who voted against NAFTA, applauded efforts by the U.S. and the newly-elected Canadian government to resolve this issue. "I've been working on resolving this issue for many years, along with our trade officials," said Senator Burns. "Today's signing brings resolution to this issue and shows strong collaboration with our largest trading partner. I applaud both President Bush and Prime Minister Harper for reaching this historic agreement. Though we've seen some mill closures in Montana due to these unfair trade practices, we hope they have now reached an end with this signing today."
"With the signing and implementation of this landmark agreement, we hope to bring to close this long standing dispute," said Ambassador Susan Schwab. "The Agreement is another achievement for the President's broad trade agenda."
This morning, the Office of the U.S. Trade Representative will announce plans for the disbursement of $450 million dedicated under the terms of the Agreement to promote meritorious initiatives in the United States.
Mills in Montana that have shut down during the past several years will see some positive benefits from the agreement. Since the initiation of the trade dispute, the U.S. has collected almost $5 billion in tariffs from the Canadians, and as a result of the agreement reached today, the U.S. businesses who have been a part of the ongoing challenge will receive approximately 20% of the duties collected, and the remainder will be returned to the Canadians.
Plum Creek President and CEO Rick R. Holley, said, "This agreement is great news for Plum Creek and for the wood products industry in Montana and Senator Burns is a big part of this success. He has been a solid supporter of the industry over the long term, and his leadership position in the Senate has been invaluable in keeping key officials in the Administration actively engaged in this effort. Every wood products worker in Montana has benefited from Senator Burns' role in this achievement."
Senator Burns is Chairman of the Senate Interior Appropriations Committee and a senior member of both the Energy and Natural Resources Committee and the Agriculture Appropriations Subcommittee.
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