U.S. Puts Tariff on Canadian Lumber Amid Allegations of Unfair Subsidies

Wall Street Journal (subscribers only) ^ | March 22, 2002 | Associated Press

[snopercod]

WASHINGTON -- The U.S. government set tariffs Friday totaling 29% on a popular type of Canadian lumber in an effort to protect American jobs and retaliate for what it says are unfair trade practices.

Critics say the move will drive up wood product prices for U.S. consumers and devastate the Canadian industry.

[snopercod]

Let's see if I understand this.

Now that the EPA and the NFWS have put American loggers out of business, they are going to try and "protect" them by putting American homebuilders out of business as well.

[snopercod]

According to U.S. Tariff Put on Lumber From Canada, which was posted on 8/10/2001, the US already slapped a 19.3% tariff on Canadian softwood.

Is this new tariff in addition to the old one?

[ATOMIC_PUNK]

What this means is our forrests are about ready to open back up [ imho ] GOODBYE SIERRA CLUB

[ellery]

WHAT IS UP WITH ALL THESE TARRIFFS FROM THE BUSH ADMINISTRATION??? I thought he was a free trader???

[Drango]

Steel & Wood???? Oh Please....

[Rustynailww]

i think so.

[Willie Green]

Now that the EPA and the NFWS have put American loggers out of business, they are going to try and "protect" them by putting American homebuilders out of business as well.

It doesn't hurt the homebuilders, it helps American lumber.

[Iscool]

It's about time...Nice to see George Bush picking up on some of Pat Buchanan's campaign promises...

But then again, maybe George has realized that after giving away Billions more of our tax dollars to Mexico and other foreign welfare, he needs to shore up the American tax base to pay for this stuff...

[snopercod]

Rereading the recent article as well as the one from last August, it looks to me like the 19.3% is the same tariff from last August, and the 9.7% was just recently added on top.

If so, it makes one wonder why the AP is reporting "old news" as if it had just happened.

[snopercod]

Please explain how a 29% increase in the price of framing lumber will not hurt American homebuilders.

Also, I think the proper way to "help" American loggers is to leave them alone, not to subsidize them.

[snopercod]

I thought he was a free trader???

I know how you feel. I once thought he was a conservative, too.

[=Intervention=]

How does it help the U.S. timber industry? Let's see...Canadian companies, apparently subsidized by their government, have a lower cost to produce lumber. Thus they can charge less for it, and do so, competing in the U.S. market. The U.S timber folks can't sell it as low due to the onerous regulations and disruptions by the eco-freaks and so go out of business. A tarriff automatically raises the cost of the timber from Canada, thus allowing the U.S timber folks to stay in business, reinvest in their own business, and achieve economies of scale that eventually lead to more jobs and lower prices. A tarriff is like a temporary bandage really, because it can be rescinded at any time. In the meantime lumber is more expensive, true, for the American consumers...temporarily. Again, as with any economic transaction, there are two sides -- the seller and the buyer. It's myopic to demand everything be low-priced as a buyer and then assume you have the right to be employed at $30 as a seller (of your own labor).

[MadRobotArtist]

Please let the next thing we put tarriffs on be bricks. Better yet, chocolate. We need to start developing better chocolate technology here in the states..

[crz]

OK Boys..here is the facts and if you dont like it, to bad. In Canada, a logger can log on government stumpage for about 6 dollars per cord Canadian. Here in the US, or at least where I am, the average bid for softwood stumpage is at 50-$70.00 per cord and thats US dollars. Here the Bid goes to the highest bidder..and the next time I see some jerk say we are subsidized I would like to track the SOB down and ring his/her neck. WE ARE NOT SUBSIDIZED AND NEVER HAVE BEEN! We bid on the timber, we build the dam roads into the place to log it, we have to follow the Government BMP rules to log it, we must follow all OSHA rules and regs, we must go to seminars yearly to be able to hold contracts with the mills to ship the timber. Oh and by the way...those roads we have to build? They have to be built per the specs of the state or USFS...although the USFS doesnt sell timber much anymore because of the eco-fruits. So all those USFS slackers who claim they are foresters are still getting paid big time to sit around with their fingers up their you know where. Cant lay off or get rid of a government worker you know. In short, all we want is a fair shake. And letting the Canadians ship their cheap lumber into the US because of their cheap stumpage is not FAIR TRADE!

[Drango]

Please let the next thing we put tarriffs on be bricks. Better yet, chocolate. We need to start developing better chocolate technology here in the states..

Yes but what about Shoes! We need to protect the shoe industry. TV's while were at it. Sugar? Fruit from Brazil. Flowers from Argentina. Semiconductors are the most important!!!!

Those cars from Japan. Textiles from India. Cheap toys from China. French wine is undercutting our domestic wine industry. Don't get me started on Swiss Watches...

[Willie Green]

snopercod sez: "Now that the EPA and the NFWS have put American loggers out of business..."

snopercod sez: "Also, I think the proper way to "help" American loggers is to leave them alone..."

Willie Green sez: snopercod = eco-nazi enviro-freak

Willie Green sez: snopercod = enemy of the American logging industry

[chicago charlie]

snopercod sez: "Please explain how a 29% increase in the price of framing lumber will not hurt American homebuilders" Willie Green sez:(nothing. i guess he's 'stumped')

[Willie Green]

Willie Green sez:(nothing. i guess he's 'stumped')

Willie Green sez: Who sez the price of framing lumber will jump 29% just because that's the tariff rate? There is still competition among domestic suppliers as well as competition from alternate materials such as roll-formed metal studs, composites, etc. etc. Additionally, many paper mills have been closing, alleviating demand for wood used for paper.

Besides, even if framing lumber jumps 29%, how does that hurt home-builders?
Do you think they'll be undercut by imported homes?

[FirstFlaBn]

Maybe these protectionists could briefly detail the extra efforts they go to in identifying and buying US made goods. Seems with the outrage they express, you'd expect they spend dozens and dozens of hours each year finding products to overpay for.

If they had their way, we'd still be driving '73 Chevettes. Remember how they demanded import quotas on Jap cars in the early 80s? They fell silent when Detroit immediately raised the price of their cars by $800. I recall studies at the time showed each auto job "saved" cost consumers $80,000 (and that's '82 dollars).

For the life of me I don't understand what people who want government picking winners and losers and interfering with voluntary private exchange are doing on a conservative website.

[edsheppa]

The department determined in its investigation that Canada subsidizes its lumber industry by charging low fees to log public lands...

That's pretty pathetic - it's a subsidy to charge a low fee? By the same "reasoning" we ought to immediately enact tariffs on exports from all low tax states.

allows its producers to sell their lumber in the U.S. at below-market prices, an illegal practice known as dumping.

So this even dumber reason is that Canada doesn't put a floor on export price of lumber? The dept actually expects another country to do this? Sickeningly stupid.