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Kirk says he'll enforce softwood pacts

by HEIDI DESCH
Hagadone News Network | September 3, 2009 11:00 PM

U.S. Sen. Max Baucus served as tour guide last week to U.S. Trade Ambassador Ron Kirk as they visited F.H. Stoltze Land and Lumber Co.'s mill here.

"My main job is to get (Ambassador Kirk) here so we can see, smell and taste what were dealing with," said Baucus.

Both gave promises to enforce the U.S.-Canada Softwood Lumber Agreement. In 2006 the two countries entered into the agreement, which sets up a fair trade deal for American softwood producers. It is designed to create an adjustment in lumber exports from Canada to the U.S. when demand is low.

Baucus and Kirk met with workers during the Aug. 26 visit. Kirk said he plans to hold Canada to the agreement.

"As long as you have a level playing field you'll do fine," he said.

U.S. and Canada have had several disputes over the agreement. Last year an international tribunal agreed with the U.S. in the latest disagreement and ordered Canada to pay $54.8 million to the U.S.

Canada failed to fix the problem and in April, Kirk imposed a 10-percent tariff on lumber imports to collect the money.

Stoltze shut down temporarily in February, but opened again in March.

Chuck Roady, the mill's general manager, said he'd like to see the mill remain open.

"Stoltze has been here a long time — 100 years," said Roady. "We want to be around another 100 years."

Kirk told workers he wants to keep "boots on the ground."

"We don't want you just working a little bit," he said. "We want you to have predictability — to know you'll have a job."

Baucus said he's been working on soft wood lumber issues for a long time and wants to hold Canada to the agreement.

"They haven't lived up to it the way they should," he said.

Kirk admitted that before being appointed by President Barack Obama five months ago he knew little about softwood trade issues. But one his first calls was from Baucus, who has since helped educate him on softwood, he said.

Kirk said he plans to "enforce the rules' of the Softwood Lumber Agreement.

"We're going to keep working for you," he told about 50 employees.