Posted on 02/02/2006 2:50:47 AM PST by RWR8189
WASHINGTON — Congress put its final stamp of approval Wednesday on legislation dumping a trade law that allows U.S. companies to profit from penalties on Canadian imports like softwood lumber.
The measure, which goes into effect Oct. 1, 2007, was part of a massive budget-cutting bill passed by the House of Representatives.
President George W. Bush said in a statement he looked forward to signing the bill.
Canada has always argued the so-called Byrd amendment must go. The five-year-old law allows the Treasury to funnel money from duties on imported goods directly to U.S. rival companies.
It's still unclear what will happen to $5 billion Cdn in softwood duties that's still being held by U.S. Customs and has yet to be distributed.
Canada is demanding the money be returned.
Canadian officials said last month it's possible some of the softwood penalties could still be disbursed starting in late 2007, depending on the results of legal battles and a repeal of Byrd wouldn't change that.
Good. Clinton didn't have brains enough to veto the agriculture spending bill this thing was riding on.
Tax money to corporations? Isn't that corporate welfare mixed with protectionism? Sponsored by KKK Byrd? Something uncapitalistic about this.
Ever been to West Virginia? There's something uncapitalistic about a lot of the state thanks to all the folks on welfare. Not to mention every bridge, school, senior center, hospital, clinic, virtually everything, is named after "Sheets". The width and bredth of that guy's ego is unmatched, IMO.
I have driven through small portions of the state, around the panhandle. I will say they have the best interstate road I have ever driven on.
That's why Canadians are so peed off. And they have every right to be. It was more than just a tariff over alegedly low stump fees. Canadians have won this case 2 times over, the article is missleading saying they are 'calling for it's removal'. They are demanding the money back.
And the most important question never touched and never answered by the writer is.... will the price of pine lumber go up or down?
One of the wonderful things about the internet is now not having to rely on the Dinosaur Media to answer questions about which they know nothing...
Here's the answer to your question..
http://www.randomlengths.com/base.asp?s1=Daily_WoodWire&s2=Market_News&s3=Midweek
This site posts the spot prices of lumber and panels every Wednesday and Friday afternoons. All my customers are wood products plants, so I follow all developments closely..
Try traveling in the SW part of the state, near Logan or Beckley. The roads are horrible. They let any load they can get on the coal trucks go. You see signs that say things like "Load limit 30 tons, except coal". Virtually every coal truck you see will have 3 to 4 2x12's added to the top of the dump bed so they can carry more coal. The result is roads with deep grooves worn in them and I'm talking one foot plus deep grooves. You almost don't need to steer the car because it follows the grooves made by the coal trucks.
A little off topic, but I heard last night the WV governor ordered all the coal mines shut down for safety inspections. What is that going to do to the local economy? Will that effect the stock market today?
That's what I like about FR - you can usually get an answer to question.
: )
Is the midweek composite price the wholesale cost per thousand bd/ft?
Bought 1 x 6 pine last week and price wasn't too bad - a bit over $4 for an 8 ft. board.
Need to buy about a thousand bd/ft to re-do the porch this spring. Maybe I should buy now?
I think he backed off that a little bit. I heard this morning that he wants all mines inspected for safety within 7 days. "Sheets" Byrd is one of the primary reasons why the underground mining is still going on in WV. He has sponsored and supported a lot of legislation that keeps WV, and other states, underground coal mining going. The coal out west is much cleaner and closer to the surface, so it can be mined by safer surface mining techniques, as opposed to underground mining techniques which tend to be more hazardous.
I'm all for workplace safety, but with that being said, nobody is forcing anybody to work in an underground mine. The miners do this by choice because it pays well. The workplace is only as safe as you make it. Where are the goonions in all of this? I thought they were the ones "fighting the good fight" in regard to worker safety.
The goonions! I love it! With your permission, I will use that term from now on.
Another question is to what extent this will have a pass through effect on housing. Does anyone know the lag time between changes in raw materials prices and the price of houses?
Can't claim originality for that one, but I nearly fell out the first time I heard it. I think the "High Priest of the Church of the Painful Truth", Neal Boortz, coined that one. I doubt he'd mind if you use it, though.....
Just something? Try corporations suing their competitors (on your taxpayer dime). And if they win, they help themselves to your wallet, and hinder their competition to boot.
bttt
Did the WTO or the OAS order us to remove this duty? I can't remember.
Sorry taking a while to get back to ya, Dave, but I really don't know what the price is going to do in the future. If I did, I would be on my megayacht down around Jamaica about now, lol...
Seriously, Random Lengths is pretty much the industry Bible on wood products issues. I suggest you follow it for a couple of weeks to learn how they follow things...
abb
suuuuure but will my local home depot or lowes be cutting the price of wood? (not!)
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