FRIENDLY NEIGHBORS?Builders encourage the United States to end tariffs against Canadian lumber and Mexican cement.
In his testimony before the U.S. House Committee on Financial Services after Hurricane Katrina struck, NAHB president Dave Wilson urged the government to lift the duties and tariffs imposed on Canadian lumber and Mexican cement to ease the supply crunch expected to accompany rebuilding efforts.
Builders in parts of 32 states continue to lack adequate supplies of cement. It looks as though there may be help coming on that front: Preliminary discussions to reduce tariffs on Mexican cement from 54 percent to 40 percent were under way this past fall, Global Insight's Michele Halickman told an NAHB economic conference in October, and a final decision was expected by December. Nevertheless, she said, pricing and shortages will ease in 2006 and 2007, as the United States will be able to supply more of its own inventory as domestic producers step up output.
There's less success with America's northern neighbor. The United States imposed tariffs and antidumping duties of more than 20 percent on Canadian softwood lumber in 2002. Though panels assembled under the North American Free Trade Agreement have consistently ruled against the U.S. tariffs, the government has declined to lift them, and in late October the U.S. Commerce Department asked for an extension to clarify the latest ruling. The good news: Prices will likely decline in 2006 anyway.