To: Snowshoe who wrote (95 ) 8/29/2001 11:46:34 PM From: Snowshoe Read Replies (1) | Respond to of 1293 N.A. coalition to ask cedar be spared Should be exempted from duty: industrytheglobeandmail.com Wednesday, August 29, 2001 By PETER KENNEDY VANCOUVER -- A coalition of North American cedar producers and distributors is set to step up the pressure on Washington to have cedar products excluded from duties imposed on Canadian softwood lumber exports destined for the U.S. market. Industry representatives are planning a news conference in Vancouver this morning to send the message that cedar is a high-value product that's used primarily where the appearance of the wood is the main consideration -- and as such, poses no real threat to the U.S. lumber industry. Unless it is exempted from duties placed on Canadian lumber shipments, they say, thousands of jobs in both the United States and Canada will be lost, while hundreds of companies that depend on cedar will disappear. "This whole softwood lumber dispute is not about cedar and it should not have been included," said Kellie Daniels, a spokeswoman for the U.S. Red Cedar Manufacturers Association, which represents cedar distributors and wholesalers in 30 American states. "I think both countries realize that, and it is just a matter of our industry being united and working with both governments to ensure it is removed when the new softwood lumber agreement is negotiated," she said. According to industry estimates, the United States imports about $1-billion of Canadian cedar each year, an amount that represents about 3 per cent of its softwood lumber imports from Canada. Most of that material is harvested from B.C. operations controlled by Weyerhaeuser Co., International Forest Products Ltd., Doman Industries Ltd. and TimberWest Forest Corp. About 3,000 people in B.C. are employed in producing cedar. "Basically, people on both sides of the border are saying that cedar shouldn't be caught up in this fight," said Lawrence Pillon, a spokesman for Weyerhaeuser, one of 80 B.C. operators which has applied to the U.S. Department of Commerce in support of the exemption. In its submissions to Washington, the coalition argues that cedar has been wrongly included in duties the real aim of which is to penalize Canadian producers of structural lumber that typically sells for around $300 (U.S.) per thousand board feet. By applying the duties to cedar, it says the U.S is targeting a high-value product which sells for around $1,000 a thousand board feet and is used in non-structural applications such as siding for houses, fencing and window stock. As cedar typically sells for three times the price of structural lumber, the coalition says its members are disproportionately at risk and face more severe penalties than producers of structural lumber. Since the U.S. imposed a 19.3-per-cent duty on Canadian softwood lumber imports two weeks ago, companies like Doman, Weyerhaeuser and Interfor have closed cedar mills rather than pick up the added cost of doing business in the U.S. As a result, about 2,500 sawmill workers have been laid off. However, the impact is expected to be even more severe in the U.S., where distributors and wholesalers are dependent on the Canadian industry for wood. "Our members are panicked by this," said Ms. Daniels. She said companies and individuals in the United States who manufacture and distribute cedar products typically are not involved in any other line of business. "And so, when the U.S. places a duty on cedar products coming out of Canada, it will completely shut down a company overnight," said Ms. Daniels. "That is why there is so much urgency from our side of the border."