Press Release of Agriculture Committee Recent Trade Matters: Softwood Lumber and Corn Ag Chairman's Statement Contact: 202-224-2035 Friday, November 18, 2005 Senate Agriculture Committee Chairman Saxby Chambliss (R-GA), along with Senators Max Baucus (MT), Gordon Smith (OR) and Larry Craig (ID), expressed disappointment when a North American Free Trade Agreement panel rejected a U.S. request for a clarification of its remand decision this week. The Department of Commerce will now have to field a response to the panel by November 23. The existing order allowing a 16 percent duty on Canadian softwood lumber is now in jeopardy due to the flawed panel ruling. In response, Senator Chambliss sent a letter urging Secretary Gutierrez to implement the panel ruling in a manner that preserves duties on imports of subsidized Canadian lumber. The letter states: “As repeatedly found by the Department, the International Trade Commission, and the World Trade Organization, Canadian lumber producers enjoy tremendous subsidies that continue to threaten serious harm on the domestic industry, its workers, and its communities. It concerns us greatly that a misstep at this point would result in an outcome directly contrary to the Department's meticulous work and documented conclusions. To that end, twenty-one Senators sent a letter to you last month making just this point.” Chambliss also expressed his concern regarding a preliminary determination by the Canadian International Trade Tribunal (CITT) regarding injury to Canadian corn farmers from U.S. exports. The ruling comes amid a decrease in U.S. corn exports to Canada over the past two years. “I am disappointed by Canada’s action, and talk about pursuing a case in the World Trade Organization will only worsen trade relations between our two countries. I see this action as inextricably linked with the softwood lumber dispute. Canada cannot accuse the United States of abuse when they flagrantly subsidize their lumber industry. The only way to solve these irritants is through a negotiated solution and a comprehensive agreement on agriculture in the Doha Round,” said Chambliss. 249135