Group Challenges Scheme Where Settlement by U.S. and Canadian Governments
   of Long-Standing Softwood Lumber Trade Dispute Includes Payout Of $500
   Million of Canadian Duty Deposits to a Select Group of U.S. Companies

    WASHINGTON, Sept. 13 /PRNewswire/ -- Lumber manufacturers representing
firms with operations in more than 16 states are in Washington, D.C. today
to appeal to Members of Congress to intervene in the Administration's plans
to provide preferential financial benefits of $500 million to a small
portion of the U.S. industry. This cash in the hands of a few selected
companies will destabilize the domestic lumber industry and circumvents the
Congress through an off-budget escrow account.
    "We have more than 30 companies that are petitioning the government to
abandon its plan to refund duties collected on softwood lumber imports into
an off-budget U.S. escrow account to be given to the U.S. Coalition for
Fair Lumber Imports," said David Slaughter, spokesperson for Lumber
Manufacturers for Ethics and Equality (LMEE). "This is wrong, creative
accounting and mis- handling of Treasury funds, with no budget oversight
from Congress."
    Slaughter said that the LMEE is investigating possible legal action to
block the total $500 million from being distributed or used without
Congressional action and oversight. He said that, if the money can be
legally handed back by Canada, it should be kept in the Treasury and used
for construction of affordable homes throughout the country.
    Canada and the U.S. have been in a decades-long dispute over softwood
lumber imports. This summer, negotiators for the two countries reached an
agreement that is designed to end the dispute for up to nine years. Part of
the deal, however, hands back to the U.S. lumber companies that brought the
trade actions against Canada one-half billion of the five billion in duties
collected since 2001.
    "Giving the petitioners this money will allow them to undercut other
competitor lumber companies and even buy out smaller companies, cutting
jobs and raising home costs," Slaughter said. "It also appears to
circumvent a U.S. Court of International Trade ruling that giving money to
trade case petitioners under the Byrd Amendment would be a violation of the
North American Free Trade Agreement (NAFTA). The Administration wants to
give cash to a select group of U.S. companies, harming their competitors."
    Slaughter also said that USTR failed to follow U.S. law requiring it to
consider the public interest, and to consult with potentially affected
domestic producers and workers. No effort was taken to communicate with or
involve non-petitioner companies over the past five years.
    Members companies who are petitioning to have the decision to funnel
cash to some domestic producers blocked include:
    Members - Lumber Manufacturers for Ethics and Equity

    Amelia Lumber Co, Amelia, Virginia
    A.V. Littrell Lumber Mill, Tishomingo, Mississippi
    Ayres & Baker Pole & Post Inc., Mountain View, Wyoming
    Bean Lumber Co, Inc., Glenwood, Arkansas
    Brittain Lumber Company, Statesville, North Carolina
    Busy B Cedar Inc., Priest River, Idaho
    Caffall Brothers Forest Products, Portland, Oregon
    Cedar Creek Horselogging & Milling Inc., Nevada City, California
    Cold Stream Lumber Co., West Enfield, Maine
    Dejarnette Lumber Company, Milford, Virginia
    J.D. Lumber Inc., Priest River, Idaho
    Lamell Lumber Corp, Essex Junction, Vermont
    Lampe & Malphrus Co., Smithfield, North Carolina
    Lewis County Forest Products, Winlock, Washington
    Littrell Lumber Mill, Decatur, Alabama
    Mason County Forest Products, Shelton, Washington
    North End Timber Products, Olney, Montana
    Oakville Forest Products, Oakville, Washington
    Patenaude Lumber Co. Inc., Henniker, New Hampshire
    Ponderay Valley Fibre, Usk, Washington
    Portac, Inc., Tacoma, Washington
    Precision Pine & Timber Inc., Heber, Arizona
    Pukall Lumber Co., Arbor Vitae, Wisconsin
    Rosboro Lumber Co., Springfield, Oregon
    RSG Forest Products, Kalama, Washington
    Tricon Timber LLC, St. Regis, Montana
    Trinity River Lumber Co., Weaverville, California
    Troy Lumber Co., Troy, North Carolina
    Sauvola's Sawmill, Northport, Washington
    Stoddard Lumber Co. Inc., St. Anthony, Idaho
    Zosel Lumber Co., Oroville, Washington


    For additional information, please contact:

    Lumber Manufacturers for Ethics and Equity
    c/o David Slaughter, Spokesperson
    Vice President
    JD Lumber, Inc.
    P.O. Box 55
    Bodie Canyon Road
    Priest River, ID  83856
    208-448-2671
    daves@jdlumber.com

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