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about two-dozen cases challenging the dutiesunder the North American Free TradeAgreement, World Trade Organization, andU.S. Court of International Trade.“Throughout the dispute, we repeatedlyhave stressed to our Canadian counterpartsthat, given the long history of this disagreement,there is little reason to believe thatthe current round of cases will resolve thematter once and for all, regardless of how theprocess plays out,” Schwab said. “Withouta negotiated solution, chances are high thatthe dispute will continue.”U.S. lumber industry representativeson both sides of the debate voiced desireto resolve the Canadian softwood lumberdispute through successful negotiationsbetween the two countries.“It is a tragedy that this long festeringtrade dispute has not been resolved,” testifiedSteve Swanson, chairman of Oregon-basedsawmill operator The Swanson Group anda representative of the Coalition for FairLumber Imports, before the Senate subcommittee.“This issue would disappear the daythat Canada made reasonable, transparentand enforceable commitments to end theirunfair trade practices and allow open andcompetitive markets for timber and logs.Canada simply refuses to do so because itis addicted to subsidies and has been unable“Given the long historyof this disagreement, thereis little reason to believethat the current roundof cases will resolvethe matter once andfor all, regardless of howthe process plays out.”Susan SchwabDeputy U.S. TradeRepresentativeto break the habit.”The coalition noted that Douglas firlumber costs $439 per thousand board feetin the United States compared to $113 perthousand board feet in Canada. “Thereis only one explanation — because theCanadian provincial government is settingprices at an artificially low level to subsidizelumber production and employment,”Swanson said.Last year, however, a NAFTA settlementpanel directed the U.S. International TradeLOGISTICSCommission to reverse a finding that unfairimports of Canadian lumber threatenU.S. industry. The coalition responded byquestioning the constitutionality of theNAFTA settlement system, also known asChapter 19, by filing a complaint with theU.S. Court of Appeals for the District ofColumbia Circuit on Sept. 13.Builder groups called the court filing abig mistake which, if allowed to proceed,could further erode U.S. trade relations withCanada at a time when lumber prices arealready inching higher.The National Association of HomeBuilders said U.S. import duties on Canadiansoftwood lumber already add about$1,000 to the cost of a home built in theUnited States.“This duty acts as a tax on Americanhome buyers and home owners seeking tomake improvements to their homes, hurtshousing affordability, and prevents manyfamilies from qualifying for a mortgage,”Barry Rutenberg, president of Gainesville,Fla.-based Rutenberg Homes, told Senatelawmakers on Feb. 14.“The simple and critical fact is that theU.S. home building industry cannot meetthe need for new homes and improvementsto existing homes without lumber importsfrom Canada,” Rutenberg said. ■United States Flag Breakbulk Project Service toEastern Mediterranean, Red Sea, East African,Middle Eastern, Pakistan and Indian destinationsLASH CARGOROLL ON/ROLL OFF CARGONew York 212-747-8550 Fax: 212-747-8588 New Orleans 504-586-0500 Fax: 504-525-7792Complete LASH scheduling information on-line www.waterman-steamship.comToll Free: 1-888-972-5274 Email: waterman@intship.comPRINCIPAL SUBSIDIARIES OF INTERNATIONAL SHIPHOLDING CORPORATIONAMERICAN SHIPPER: APRIL 2006 41