HOUSE CONCURRENT RESOLUTION 1-1 WHEREAS, Lumber is an important natural resource and a vital 1-2 industry for both the United States and Texas; the U.S. and Texas 1-3 timber industries' ability to compete in a global economy, however, 1-4 is hampered by the continuing influx of Canadian lumber, which is 1-5 heavily subsidized by the provincial governments; and 1-6 WHEREAS, Canadian softwood lumber producers obtain most of 1-7 their timber supply from government-owned forests, and the 1-8 provinces subsidize lumber production by selling timber to Canadian 1-9 lumber companies at noncompetitive prices for a fraction of the 1-10 timber's market value; and 1-11 WHEREAS, Artificially low provincial timber prices, minimum 1-12 harvesting restrictions, and other practices that encourage 1-13 overharvesting and overproduction have helped Canadian imports gain 1-14 a 36 percent share of the U.S. softwood lumber market; and 1-15 WHEREAS, Highly subsidized Canadian lumber imports unfairly 1-16 compete with U.S. lumber companies, jeopardizing thousands of jobs 1-17 and driving down the market value of U.S. forestlands; and 1-18 WHEREAS, U.S. industry and labor groups, U.S. and Canadian 1-19 environmental organizations, and Native American groups have called 1-20 for an end to these subsidies in order to establish fair trade 1-21 practices; and 1-22 WHEREAS, The United States must fully enforce trade laws to 1-23 offset the subsidies and mitigate injury to the U.S. softwood 1-24 lumber industry if the Canadian subsidies are not discontinued; and 2-1 WHEREAS, The only protection for U.S. timber growers against 2-2 these unfair market conditions is the current United States-Canada 2-3 Softwood Lumber Agreement, which is scheduled to expire on the last 2-4 day of March 2001; now, therefore, be it 2-5 RESOLVED, That the 77th Legislature of the State of Texas 2-6 hereby respectfully urge the Congress of the United States to: 2-7 (1) make the problem of subsidized Canadian lumber 2-8 imports a top trade priority to be addressed immediately; 2-9 (2) take every possible action to end Canadian lumber 2-10 subsidy practices through open and competitive sales of timber and 2-11 logs in Canada for fair market value or, if Canada will not agree 2-12 to end the subsidies immediately, provide that the subsidies be 2-13 offset in the United States; 2-14 (3) encourage open and competitive timber sales at 2-15 fair market prices; and 2-16 (4) if Canada does not agree to end subsidies for 2-17 lumber: 2-18 (A) enforce vigorously, promptly, and fully the 2-19 trade laws with regard to subsidized and dumped imports; 2-20 (B) explore all options to stop unfairly traded 2-21 imports; and 2-22 (C) limit injury to the U.S. lumber industry; 2-23 and, be it further 2-24 RESOLVED, That the Texas secretary of state forward official 2-25 copies of this resolution to the president of the United States, to 2-26 the speaker of the house of representatives and the president of 2-27 the senate of the United States Congress, and to all members of the 3-1 Texas delegation to the congress with the request that this 3-2 resolution be entered in the Congressional Record as a memorial to 3-3 the Congress of the United States of America. Christian McReynolds Ramsay Ellis _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.C.R. No. 98 was adopted by the House on April 20, 2001, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.C.R. No. 98 was adopted by the Senate on May 16, 2001, by a viva-voce vote. _______________________________ Secretary of the Senate APPROVED: __________________________ Date __________________________ Governor