Missouri Timber Price Trends
January - March, 2007

Washington: Proposed bill seeks to curb trade in illegal timber

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It could be your new hardwood floor or coffee table with a rich mahogany hue. Although the wood may look good, there is a strong chance it came from timber harvested illegally in places such as Honduras, Indonesia or Peru, labor and environmental groups say.

Now a bipartisan group of congress members wants to crack down on illegal logging around the world. A bill introduced Tuesday would ban U.S. imports of wood products derived from illegally harvested timber.

Much like the movie "Blood Diamond" which portrays diamonds as fueling a brutal civil war in West Africa, the logging bill is aimed at reminding U.S. consumers to consider where their new bedroom dresser or hardwood floor comes from, said Rep. Earl Blumenauer, D-Ore., the bill's chief sponsor.

"Illegal logging is a problem that crosses national boundaries to affect communities, companies and ecosystems alike" Blumenauer said, adding that he hopes to "raise the profile" of illegal logging so that consumers pressure retailers to reveal the source of furniture and flooring, just as many do with so-called fair-trade coffee. As much as 30 percent of U.S. hardwood imports are from suspicious or illegal sources, according to the U.S. International Trade Commission. Much of the wood is sent to China, where it is processed at low cost and then exported to the United States and other countries.

Illegal logging costs U.S. 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, a trade group that represents the wood products industry.

The logging bill, co-sponsored by Reps. Robert Wexler, D-Fla., and Jerry Weller, R-Ill., 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, purchase or sale of timber products made in violation of any domestic or foreign law or international treaty.

The forest and paper association stopped short of endorsing the bill but said it welcomes increased interest shown by Congress in the issue.

Earlier this month, Senate Finance Committee Chairman Max Baucus, D-Mont., asked the International Trade Commission to investigate Chinese trade practices he said are hurting U.S. hardwood plywood manufacturers.

Last month, the U.S. Trade Representative filed a complaint with the World Trade Organization targeting Chinese subsidies of illegally harvested hardwood.

The forest and paper association warned that laws targeting U.S. imports could increase costs for legitimate producers while decreasing risks associated with illegal production.

"It is essential that policy responses do not create perverse incentives by raising the costs of 'legal' forest products, thus making illegal logging even more profitable," the group said.

A host of environmental, labor and business groups endorsed the bill, including the Environmental Investigation Agency, Sierra Club, World Wildlife Fund, Defenders of Wildlife, Natural Resources Defense Council, United Steel Workers and Wood Flooring International.

Sources: Associated Press.


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