The United States is the largest producer of paper and wood products in the world. We employ 1.6 million Americans and rank among the top 10 manufacturing employers in 46 states. Export sales are critical to the future growth and, ultimately, the survival of our industry. Access to the Japanese market is a critical part of this equation. After the U.S., Japan ranks as the second largest market for paper products and the number one export destination for solid wood products.
Japan is a high cost producer of both paper and wood products.
The competitive price and high quality of U.S. forest products should command for our companies a strong position in the Japanese market. This new capability rests on the foundation of a sanctuary home market. In the wood products market, Japan has traditionally relied on discriminatory technical standards and a sharply escalated tariff structure to exclude value-added wood products imports. In recent years, due in large measure to the Japanese government's desire to lower the cost of housing construction through deregulation, the U.S. has been able to make substantial progress in mitigating the more discriminatory aspects of Japanese building codes and other technical standards. But tariffs remain a major obstacle.