If the ITC finds that imports are unfairly subsidized, the Commerce Department could set duties to offset the Canadian industry's financial advantage. Apply financial penalties retroactively if Canada is found guilty of dumping lumber at unfair prices. Review imports from April 2000 to March 2001 because of the drop in lumber prices. Evans agreed to monitor future trade, Collins said. Evans said applying penalties retroactively is an option and reviewing trade during the past year is something that could happen down the road, a Snowe spokesman said.
Tensions are high because of low lumber prices and mill closures across the country.
Maine's Democratic Reps., Tom Allen and John Baldacci, have also urged the administration to protect the industry from unfair trading. U.S. lumber prices are at a nine-year low. That has led to job losses and mill closings, including two shutdowns last month in Passadumkeag and Costigan, central Maine towns located north of Bangor. At issue is an existing trade agreement with Canada that sets a quota on lumber imports from Quebec, Ontario, Alberta and British Columbia, but is considered too weak by industry advocates in the United States. States that have large lumber industries affected by the imports include Maine, Montana, Idaho and Washington.