Trade rep promises to enforce lumber agreement

Sen. Max Baucus, D-Mont., visited the F.H. Stoltze lumber mill west of Columbia Falls on Wednesday with U.S. Trade Ambassador Ron Kirk -and both pledged to continue vigorous enforcement of the U.S.-Canada Softwood Lumber Agreement.

"For more than 100 years, the softwood lumber industry has been the lifeblood of Montana," Baucus said. "Today's tour of the lumber mill was designed to help Ambassador Kirk see, smell and hear how important this industry is to Montana's economy. Ambassador Kirk has worked hard to enforce the U.S.-Canada Softwood Lumber Agreement in the last year. I hope today's tour will encourage even more vigilant enforcement of the agreement so America's lumber workforce can compete on fair ground."

In March, the London Court of International Arbitration ruled in favor of the United States in the latest in a long series of disputes over softwood trade issues.

The court ordered Canada to pay $54.8 million in compensation for breaching obligations of the 2006 agreement. Canada refused, and Kirk responded by imposing a 10-percent tariff on Canadian softwood imports to collect the money.

Meeting with a group of about 50 Stoltze employees, Kirk admitted that when he was appointed by President Barack Obama five months ago, he knew nothing about softwood trade issues. But he said he has brushed up on the subject since then, with help from Baucus.

"We believe that if you have a level playing field, you'll do just fine," the former mayor of Dallas said

He added that imposing the tariff this year was "only the beginning" of ensuring vigilant enforcement of the softwood agreement.

"I just want you to know we got your back," Kirk told the employees.

Baucus is leery of future softwood trade issues arising because of Canada's history of finding clever ways to get around terms of the agreement.

"To be honest, they haven't been living up to it the way they should," Baucus said.

Stoltze President Chuck Roady said Canadian imports account for 30 to 40 percent of annual softwood lumber sales in the United States, and during the last year those imports have not helped a lumber market that slumped to its lowest levels since the 1980s.

Motioning toward the rail tracks north of the mill, Roady said the sheer volume of Canadian imports is obvious to Stoltze employees.

"When you see 20 to 30 rail cars go by here every day [loaded with Canadian lumber], I mean, geez, we're trying to make a living here," he said.

Roady said he believes Kirk is committed to enforcing the agreement.

"Enforcement is the issue here … If it isn't enforced, it's meaningless. He's got a clear picture of that," Roady said. "I thought he was genuine, I thought he cared. Just the effort he made to come here, not many ambassadors do that."

Baucus fielded questions on other subjects from Stoltze employees.

Bernard Gnam said he has "deep concerns' about widening federal spending deficits, and he asked how the political leadership in Washington, D.C., will address the issue.

Baucus, who is chairman of the Senate Finance Committee, said he shares those concerns, and he believes that health-care reform is a key ingredient in cutting deficits that are largely driven by Medicare spending increases.

The key, he said, is adopting reforms that curb the rate of health care spending increases that far exceed standard inflation rates.

Scott Daumiller asked about wilderness legislation that tends to provide permanent protection for wilderness areas but falls far short of providing similar protections to ensure that other lands are productively managed for multiple uses.

Montana Sen. Jon Tester's recent wilderness legislation includes mandates for logging, but Daumiller said those provisions can be blocked by lawsuits.

Baucus said those types of lawsuits drive him "nuts."

"I agree with you and to be honest I don't have an answer for it," he said.

Reporter Jim Mann may be reached at 758-4407 or by e-mail at jmann@dailyinterlake.com