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:: Sunday, February 08, 2004 ::

U.S. Delegation: Canadian Government Should 'Stay the Course' On Softwood Lumber, Letting International Challenges Prove Canada's Case Source: American Consumers for Affordable Homes
Bobby Rayburn, President of the National Association of Home Builders (NAHB), asserted that its members continue to support free trade in softwood lumber between the U.S. and Canada. 'NAHB opposes tariffs, quotas, and other restrictive border measures because they cause artificial price increases and volatile swings in the lumber market, both of which hurt housing affordability,' he said. 'Lumber is the biggest, single materials cost for producing new homes, and is critical to the price of a home, as well as remodeling costs and costs for other lumber using processes.'

'We have historically had to import at least a third of our domestic lumber needs from Canada in order to have the quality and quantity of lumber required for home construction or remodeling,' said Don DeGroot, NLBMDA board member who is president of R.E. Sweeney Lumber Company in Fort Worth, Texas. 'We are deeply concerned that new quotas would only add to price instability in the market and restrict access to Canadian softwood which is demanded by our customers,' he added. 'A quota is just another word for tax, and our dealers must pass this unfair tax on to our customers, American home builders and buyers.'

Lumber tariffs have resulted in higher lumber costs in the U.S., reflecting what amounts to a 27 percent tax on consumers. It is estimated that these tariffs could add as much as $1,000 (U.S.) to the price of a new home, thus excluding as many as 300,000 U.S. households from mortgage eligibility. This is especially harmful to first-time homebuyers.

posted 8:48 AM :: reference link :: 0 comments ::

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