| Canada trade pact renewal
on docket By JAMES RONALD SKAINS In an interview with The Piney Woods Journal, 5th District Louisiana Congressman John Cooksey said ``It is essential that we renegotiate and renew the U.S.-Canada Softwood Agreement that is set to expire on March 31, 2001. We will get it renegotiated and renewed.'' Cooksey, who is on two House Agriculture and Forestry sub-committees that oversee the nuts and bolts of this Agreement also pointed out, ``How this Agreement originated was that Canada got caught cheating on a GATT trade Agreement. They were subsidizing their forest industry to the point that it was detrimental to U.S. lumber manufacturers.'' ``Instead of the U.S. putting high tariffs on the Canadian lumber, Canada agreed to put quotas on the amount of lumber that they would send into the United States,'' Congressman Cooksey said. ``We have to protect both the lumber manufacturers and the end users here in the United States from unfair competition.'' The renewal of the U.S.-Canada Softwood Agreement appears to have an uphill fight for renewal. According to published information more than 100 Congressmen have indicated their opposition to renewal. Reportedly, both Home Depot and Lowe's, the two major retailers of lumber in the United States, oppose the renewal of the Trade Agreement, favoring non-restrictions on the amount of ``cheap'' lumber imported into the United States. There is hope throughout the forest products industry that the new Bush administration will take a more favorable view of the plight of the industry. Much of the U.S. forest products markets have disappeared due to imports and negative global economic conditions. In discussing another ``Canadian'' factor affecting the lumber and timber industry in the Piney Woods of North Louisiana, Congressman Cooksey had this to say: ``I'm glad to see West Fraser Company buying the two Plum Creek mills at Joyce and Huttig. My concern was that Plum Creek would shut the mills down if they could not find a buyer." ``We have to do everything possible not only to create jobs but to protect our jobs in the forest products industry,'' Congressman Cooksey stated. ``Up until two years ago, Louisiana ranked 9th on the list of exports of agriculture and forestry products. This year, Louisiana is ranked 11th in total exports, which is not bad.'' Cooksey, who was recently reelected to his third and supposedly last term in Congress if he maintains his self-imposed three term timit, also emphasized, ``I'm very supportive of tax cuts for those who are working. Also, I'm in favor of eliminating the marriage tax burden and the estate tax, and would favor across-the-board tax cuts.'' ``The national debt is still rising at the rate of $15 million dollars a day because we have to service the interest on the debt,'' Cooksey stated in reply to a Journal question about the $5.6 trillion national debt. ``We spend about $250 billion dollars a year on the annual interest on the national debt.'' Cooksey also noted that the major part of the projected federal budget surplus is from Federal Trust Fund Accounts. ``There is a $165 billion surplus in the Social Security Trust Fund, a $32 billion surplus in the Medicare Fund, and other Federal Trust Funds account for another $71 billion in surpluses. In addition, there is a surplus in the General fund.'' Congress goes back into session in early January. However, the sub-committees that are responsible for the renegotiation and renewal of the U.S.-Canada Softwood Agreement are reportedly hard at work on this issue. The Softwood Agreement was signed in 1996 as a five year agreement. At that time, Canadian lumber had captured nearly 40% of the U.S. lumber market. Since the signing of the Agreement to restrict by quota Canadian lumber imports to the U.S., the Canadian share of the U.S. lumber market has dropped to 34% of the market It is estimated that unless the Softwood Agreement is renewed in April of 2001, the Canadian share of the U.S. Lumber market will quickly soar past the 50% mark. |