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American Home Builders in U.S. Unhappy with Softwood Deal

By 250 News

Thursday, June 15, 2006 12:49 PM

    

With the softwood lumber deal stalled, there are concerns being raised by the American based National Association of Home Builders.

In a new release issued in Washington D.C., the NAHB says it has serious concerns about the package that is under consideration  and worries the  Canadian and American governments are rushing into a deal that would have implications for at least 7 years, possibly 9.

The Association says the agreement as it stands could seriously disrupt the lumber market  “by increasing and destabilizing prices, causing production bottlenecks as Canadian producers fight for limited market share, and instigating supply shortages as firms delay shipments in anticipation of a change in duties.”

The Association says the two sides are rushing towards a political deadline to coincide with Prime Minister Stephen Harper’s visit with U.S. President George Bush on July 6th.

The Association says Canada should have pressed on with it’s court challenge, but seeing as how it would appear Canada has abandoned that course, the Association’ says  it will  “Take several actions to safeguard the interests of its members and their customers”

NAHB’s executive Vice President Jerry Howard says his group will continue to urge the two sides to look at  how the possible agreement will affect  consumers  “Second, if a deal results in new trade barriers that limit Canadian lumber shipments into the U.S., NAHB will help builders obtain a reliable supply of lumber at a reasonable cost by facilitating increased imports from Europe. And finally, NAHB is promoting the use of steel and other alternative building materials wherever practical."


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Comments

I think it is pretty clear that in his rush to prove himself to Canadians, Harper (Emerson, too) has made a serious error in judgement. The question is whether he will now acknowledge that or whether he will continue on this road of economic capitulation. I would be interested in Jay Hill's views on the NAHB's intentions.