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North American Lumber Market

01-15th March 2007



US lawmakers seek ban on illegal timber imports
A group of Republican and Democrat congressmen want to crack down on illegal logging around the world. Led by Democrat Rep. Earl Blumenauer, the group seeks support for a bill to ban US imports of wood products derived from illegally harvested timber. Lawmakers hope to make US consumers more aware of where their new furniture orhardwood floor comes from, Mr. Blumenauer said. He added that according to the US International Trade Commission, as much as 30% of US hardwood imports were from suspicious or illegal sources, Much of the wood
is sent to China, where it is processed at low cost and then exported to the USA and other countries. Mr. Blumenauer said that illegal logging costs US companies as much as $1 billion a year in lost exports and reduced prices for timber products, according to the American Forest and Paper Association.

The logging bill would extend the Lacey Act, which prohibits importation of wildlife taken in violation of conservation laws, to apply to wood and timber products. The measure would ban the import, export or sale of timber products made in violation of domestic or foreign law or international treaty.

ENGO and workers call for levies on Indonesian paper
The Sierra Club and United Steelworkers union asked the US Commerce Department (USCD) to levy import duties on paper from Indonesia, saying that wood used to make the paper is illegally logged. The environmental group and the union, in the first joint case of its kind, argued that lax
enforcement of environmental laws amounts to a subsidy for the Indonesian paper companies and should be counteracted with US tariffs. According to them, enormous growth in Indonesia¡¯s pulp and paper industries, fueled in large part by government subsidies, has raised demand for timber and thus increased pressures to log illegally.

In the filing to the USCD, the groups cited a 2005 Department of Agriculture report that said more than half the timber cut in Indonesia was harvested illegally. Systematic non-enforcement of Indonesian laws regarding timber harvesting in state-owned forests permitted logging companies to obtain valuable government-owned resources without paying adequate remuneration, the complaint contended. The groups did not detail how high the tariffs should be to compensate for the allegedly illegal subsidies. 

The steelworkers union represents workers at paper companies, including Ohio-based NewPage Corp. The company brought an initial trade complaint last year against $600 million a year in glossy paper imports from China, South Korea and Indonesia. The USCD is scheduled to make its initial ruling in that complaint by April 2. 

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Abbreviations

LM        Loyale Merchant, a grade of log parcel  Cu.m         Cubic Metre
QS         Qualite Superieure    Koku         0.278 Cu.m or 120BF
CI          Choix Industriel                                                       FFR            French Franc
CE         Choix Economique                                                        SQ              Sawmill Quality
CS         Choix Supplimentaire      SSQ            Select Sawmill Quality
FOB      Free-on-Board     FAS            Sawnwood Grade First and
KD        Kiln Dry                               Second 
AD        Air Dry        WBP           Water and Boil Proof
Boule    A Log Sawn Through and Through MR              Moisture Resistant
              the boards from one log are bundled                      pc         per piece      
              together                      ea                each      
BB/CC  Grade B faced and Grade C backed MBF           1000 Board Feet          
              Plywood   MDF           Medium Density Fibreboard
BF         Board Foot F.CFA         CFA Franc        
Sq.Ft     Square Foot               Price has moved up or down

Source: ITTO'  Tropical Timber Market Report

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