NAHB Works to Soften the Blow of New Lumber Pact
Five days after U.S. Trade Representative Susan Schwab and Canadian Trade Minister David Emerson signed a softwood lumber accord establishing a complex system of quotas and new tariffs artificially boosting prices during periods of normal or weak demand for the building material, NAHB formally instituted new policy to help builders once the pact goes into effect.
On Sept. 17, the NAHB Board of Directors approved a resolution during its fall meeting in Salt Lake City that calls on the association to “work with the U.S. government, governments of other countries and industry to promote additional opportunities for NAHB members to obtain access to high-quality, stable and affordable supplies of lumber and other key building materials.” The resolution also calls on the U.S. Congress and the Bush Administration to eliminate all artificial economic trade barriers that discourage the use of imported or alternative building materials in the marketplace and urges NAHB to investigate how it can help builders access new technologies, innovations in home construction and alternative building materials that will provide consumers with more affordable housing. This new policy will supplement NAHB’s long-standing efforts to expand domestic timber supply.
To implement the new policy, NAHB is working to increase imports from Europe. Next month, NAHB Immediate Past President David Wilson and Executive Vice President Jerry Howard will travel to Russia to meet with industry representatives, establish contacts with producers and identify any policy barriers to increasing the volume of imports from their current level. A similar trade mission is planned later this fall to Sweden. In addition, the NAHB Research Center is promoting the use of steel, cement, engineered wood products and other alternative building materials wherever practical.
The new seven-year lumber pact, which is expected to be ratified by the Canadian parliament shortly and take effect as early as next month, would subject Canadian imports to a combination of export taxes ranging from 5%-15% and volume limits when prices fall below $355 per 1,000 board feet. If the pact were in effect today, Canadian lumber producers would be paying duties of 15% — the maximum stipulated — because current prices are well below the $315 per 1,000 board feet threshold that is part of the complicated system of export taxes and quotas based on market prices. For more information, e-mail Jenna Morgan Hamilton or call her at 800-368-5242, x8407.
|