August 11,2005

Baucus Comments on Lumber Ruling

(WASHINGTON, D.C.) Senator Max Baucus, ranking member of the Senate FinanceCommittee, issued the following statement in response to yesterday's ruling against the U.S.lumber industry by a NAFTA Extraordinary Challenge Committee (ECC):

"I am deeply disappointed by the NAFTA ruling against the U.S. lumber industry. Thedecision is another example of how the NAFTA dispute settlement process has failed to addressthe real issue in the lumber dispute -- unfair Canadian government subsidies to Canada'ssoftwood lumber industry.

"These subsidies must end. They harm the U.S.industry, distort trade, and poison ourrelationship with Canada.

"Canada's federal and provincial governments have the chance to stop – once and for all –providing these pernicious subsidies in upcoming negotiations between our two governments. Ihope Canada takes advantage of this opportunity. It is certainly preferable to escalatinglitigation, which remains the only viable alternative available to the U.S. industry."