CONSERVATION CORNER
Canadian Lumber Agreement Will Benefit Mississippians
by James L. Cummins

The U.S. Department of Commerce has announced that the duties on Canadian lumber shipments to the U.S. were reduced to 21.2 percent. The new deposit rate will go into effect as soon as this decision is published in the Federal Register.

The 21.2 percent figure also represents the actual rate of cash payment that is required for shipments made from May 2002 through March 2003. Because the new rate is lower than the 27.2 percent deposit rate that has been required since the duties took effect, refunds will be due for the amount that was overpaid.

The countervailing duty was lowered from 18.8 percent to 17.2 percent, while the "all other" anti-dumping duty rate dropped from 8.4 percent to 4.0 percent. The companies who were investigated in the dumping case also have new rates. They are: Weyerhaeuser, 12.4 percent down to 8.7 percent, Abitibi Consolidated, 12.4 percent down to 3.1 percent, Tembec, 10.2 percent up to 10.6 percent, Canfor, 6.0 percent down to 1.8 percent and West Fraser, 2.2 percent down to 0.9 percent.

Also investigated in the final administrative review were Buchanan, which was given an AD duty of 4.8 percent, and Tolko's

duty will be 3.9 percent. Either side in the lumber dispute could appeal Commerce's administrative review of the duties through NAFTA. If an appeal is filed, the new 21.2 percent duty rate would remain in effect pending outcome of that appeal. Commerce is currently conducting an administrative review of the April 2003 through March 2004 period.

The determination by the Department of Commerce confirms that Canadian lumber is heavily subsidized and dumped.

Upon the decision, Governor Haley Barbour said, "The Canadian Provincial Governments have been unfairly subsidizing its forest industry for years to the detriment of the U.S. lumber industry. Here in Mississippi, we've lost thousands of jobs and had several mills shutdown as a result. The economic impact of the timber industry in Mississippi is simply enormous, and I am a firm believer that it is one area which has the potential for a lot of additional growth, especially value-added forestry products. This translates into many more jobs for the people of our state. That is why resolving this lumber dispute with Canada is so critical, and the recent decision by the Department of Commerce takes us closer to resolution. The results of the decision will produce benefits for everyone from the small forest landowner to the large lumber mills and even to the conservation and sportsmen's community.”

James L. Cummins is Executive Director of the Mississippi Fish and Wildlife Foundation in Stoneville, Mississippi. Known as "Wildlife Mississippi," the Foundation is a non-profit, conservation organization founded to conserve, restore and enhance fish, wildlife and plant resources throughout Mississippi. Their web site is www.wildlifemiss.org.