Lumber from Canada

Is Canadian lumber subsidized? According to Sen. Olympia Snowe (“Snowe wants duties to offset Canadian lumber subsidies,” BDN, Oct. 27), it’s “greatly subsidized.” To paraphrase Mark Twain, reports of Canadian subsidy have been greatly exaggerated.

Our two countries have argued this in front of our NAFTA free trade panels, and panel after panel has said that Canadian forestry practices are neither subsidized nor injure U.S. producers.

Does Canada have a different lumber pricing system? Yes. Does that system meet international trading obligation? Yes again.

The first step to resolving this dispute lies in recognizing the obvious – the Canadian system is fair and poses no threat of injury to U.S. producers.

Ultimately, it’s the American home buyer who suffers – especially if that added tax results in a housing cost that disqualifies his or her family from getting a mortgage.

Frank McKenna

Ambassador of Canada to the United States

Washington, D.C.