U.S. Coalition for Fair Lumber Imports Troubled by Latest Canadian Government Subsidy Plan

WASHINGTON, Jan. 13 /PRNewswire-USNewswire/ -- The U.S. Coalition for Fair Lumber Imports is deeply concerned that Canadian authorities will use the subsidy plan announced on January 10 to aid the already heavily taxpayer- supported Canadian forestry industry in violation of the U.S.-Canada Softwood Lumber Agreement.

The Coalition, which represents both small and large U.S. lumber producers, is closely scrutinizing the latest proposal by the Canadian government to earmark C$1 billion that is to be funneled through the provincial governments to provide relief to the forestry sector during these difficult market conditions.

"We strongly suspect money ostensibly earmarked for workers will be used to reduce liabilities of Canadian lumber companies, which would violate the Softwood Lumber Agreement," said Steve Swanson, chairman of the Coalition and president of Swanson Group, a family-run lumber operation based in Glendale, Oregon.

The agreement, which came into effect October 12, 2006, specifically prohibits new government subsidies to the Canadian lumber industry.

"Lumber industries on both sides of the border are going through difficult circumstances, but now is not the time for the Canadian government to step in with new subsidy schemes to give its industry unfair advantages in the U.S. market," said Swanson.

The Coalition plans to launch a detailed review of the new program outline released late last week by the Canadian government and take appropriate steps to respond.

About the U.S. Coalition for Fair Lumber Imports

The U.S. Coalition for Fair Lumber Imports is an alliance of large and small lumber producers from around the country. The Coalition is united in opposition to Canada's unfair lumber-trade practices, including its gross under-pricing of timber. For more information, please visit the Coalition's website at www.fairlumbercoalition.org.