State lawmakers asking Congress to open timber trade with Asia

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(The Center Square) – State House speakers from five Southern states are asking Congress to alleviate pressure on the timber industry by reopening the Asian market.

The letter said recent changes in the market, uncertainty in trade policy and regulatory barriers contributed to the closure of mills in the South.

Five mills have closed in southern Georgia in recent months. International Paper announced in August that it was closing two mills in Riceboro and two in Savannah at the end of September. Georgia-Pacific closed its paper mill in Cedar Springs at the end of July.

The closings will have a direct economic impact of $1.7 billion said Devon Dartnell, Forest Utilization Chief for the Georgia Forestry Commission, during last month's meeting of the House Rural Development Committee. The effect due to the loss of wages is $318 million, according to Dartnell.

“For generations, the forestry industry has been the backbone of south Georgia’s families and communities, supporting thousands of good-paying jobs for Georgians and generating billions in economic impact each year,” Georgia House Speaker Jon Burns said. “Across the Southeast, this vital industry has been impacted by shifting markets, nontariff barriers to trade and global economic uncertainty."

Burns, Alabama House Speaker Nathaniel Ledbetter, Arkansas House Speaker Brian Evans, Florida House Speaker Danny Perez and South Carolina House Speaker Murrell Smith Jr. said the Chinese ban on taking U.S. logs has closed off a significant market.

"Pushing for the current administration to work towards reopening the Asian market for U.S. logs and chips through ongoing trade negotiations is crucial for increasing demand in the short-term for U.S. forest products," they said in the letter.

Trade of Southern Yellow Pine wood chips to the European Union is stymied by the use of sulfuryl fluoride, the state lawmakers said. They are asking Congress to advocate for the use of sulfuryl fluoride.

"The European Union does not currently permit the use of SF, the only commercially viable fumigant on board vessels," the House speakers said in their letter. "This regulation represents one of the most significant barriers to trade impacting U.S. pinewood exports."

The state lawmakers said some products and shipments from U.S. exporters are getting "stuck" due to immediately imposed tariffs.

"Establishing a 90-day notice period for any tariffs going into effect that would have an impact on the flow of forest products into or out of the U.S. would drastically improve market stability and predictability," the lawmakers said in the letter.