Low prices, fuel costs hurting state's lumber industry

While there is concern about subsidized Canadian lumber unfairly competing with the U.S. industry, that is only one of many issues currently affecting the health of the timber industry in Mississippi.

U.S. Sen. Thad Cochran (R-Miss) met with the U.S. Secretary of Commerce recently to request action to prevent additional lumber mills from closing in Mississippi and other states in the wake of the expiration of the Canadian Softwood Lumber Agreement that limited lumber imports into the U.S.

Cochran said high fuel cost and low lumber prices were already hurting Mississippi lumber mills, and requested that the Commerce Department act quickly to keep additional lumber mills from closing. About $10 billion worth of Canadian lumber, representing 30% of lumber sales in the U.S., is imported each year. The Coalition for Fair Lumber Imports says about 160 U.S. mills have closed in the past year, compared to only two in Canada.

The U.S. softwood lumber industry filed two fair trade cases after the Canadian lumber agreement expired at the end of March. The first case alleges imports are being sold in the U.S. at less than fair value, and the second alleges that subsidized imports are having an injurious effect on the domestic softwood industry.