Lumber Producer Urges Cooperation Between US And Canada In Tax Dispute

by Mike Godfrey, Tax-News.com, Washington

25 November 2002

A softwood lumber producer with interests on both sides of the Canada-United States divide has proposed its own solution to the long-running dispute over US import taxes.

Speaking to the Business Wire news service last week, Steven R. Rogel, head of Weyerhaeuser - the world's largest producer of softwood lumber, which has 18 sawmills located in Canada and 27 in the United States - announced that:

'As a company with operations on both sides of the border, we're concerned that a wall is being built between the US and Canada...The time has come to tear it down once and for all.'

He went on to explain that: 'Clearly the [US] anti-dumping duty doesn't work. In fact, it's backfired as Canadian firms have increased production to lower their unit costs. The anti-dumping duty has aggravated the over-supply situation and driven prices lower.'

The Weyerhaeuser chairman, president, and CEO then suggested a two-step solution, the first stage of which involves establishing a Canadian border tax on softwood lumber exports and calling an end to all ongoing petitions, litigation and appeals. Then, according to Mr Rogel, Canadian log-pricing practices should be changed to more closely mirror those employed in the United States.

'There's only one way this plan can work,' he warned Business Wire. 'Both sides must be willing to compromise. If everyone gives a little, we can make this work for North America.'

However, by his own admission, the issue is a complex one which in the past has had problems attracting attention in the US.

Recommended