MAINE FOREST PRODUCTS COUNCIL & MAINE WOOD PRODUCTS ASSOCIATION ENDORSE COLLINS TRADE BILL

Washington, D.C. -- The Maine Forest Products Council and the Maine Wood Products Association have added their endorsements to legislation introduced by Senator Susan Collins, the "Stopping Overseas Subsidies Act of 2004" (SOS Bill). The SOS Bill gives the U.S. government the legal strength to enforce fair trade laws against all countries that export goods into the U.S. This would greatly increase the ability of U.S. companies to fight unfair trade from overseas. Moosehead Manufacturing of Monson, Pride Manufacturing of Guilford, Peavey Manufacturing of Eddington, Bethel Furniture of Bethel, and Down East Woodcrafters of Skowhegan have also endorsed Senator Collins' legislation.

"Industries across the country that produce products ranging from paper to footwear to furniture are being harmed by unfair trade practices. The result is lost jobs, shuttered factories, and decimated communities," said Senator Collins. "I hear from manufacturers in Maine whose efforts to compete successfully in the global economy simply cannot overcome the practices of illegal pricing and subsidies of nations such as China. It's time we put a stop to unfair trade practices in other countries and the SOS Bill is one tool to accomplish that."

Senator Collins' legislation would allow the U.S. to enforce anti-subsidy laws, known as countervailing duty (CVD) laws, on all trade partners. Countervailing duty laws prohibit foreign countries from subsidizing industries and businesses in a way that allows those industries and businesses to sell their goods below the cost that American manufacturers are able to offer. Current trade law does not allow the U.S. to enforce these laws on countries that traditionally operate under a state-controlled economy. But Senator Collins' legislation updates the law to take into account the fact that many of these countries, like China, now allow their manufacturing industries to operate as relatively free markets engaged in international trade.

"Maine wood products are the best in the world and we feel we can compete with anyone given a level playing field," wrote Robert MacGregor, Executive Director of the Maine Wood Products Association. "We are increasingly concerned that government subsidies for forest products manufacturing and other unfair trading practices by non market economies such as China can tilt the international playing field."

Linda Griffin, President of the Maine Forest Products Council, wrote, "The U.S. CVD laws are intended to ensure that U.S. manufacturers can challenge imported products that have been unfairly subsidized by their home government. As China and other non market economy countries are participating more fully in the global marketplace and with the increased ability to identify and quantify government subsidy programs and practices… We believe it is time for Congress to update the CVD laws to ensure that the same laws which apply to our other trading partners, apply to China."

Senator Collins' SOS Bill is cosponsored by Senators Evan Bayh (D-IN), Robert Byrd (D-WV), Thad Cochran (R-MS), Michael DeWine (R-OH), Elizabeth Dole (R-NC), Richard Durbin (D-IL), John Edwards (D-NC), Lindsey Graham (R-SC), Blanche Lincoln (D-AR), Trent Lott (R-MS), Mark Pryor (D-AR), George Voinovich (R-OH), Max Baucus (D-MT), and Richard Shelby (R-AL). It has received endorsements from the American Forest & Paper Association, American Textile Manufacturers Institute, United Steel Workers of America, Committee on Pipe and Tube Imports, Metals Service Center Institute, American Foundry Society, Specialty Steel Industry of North America, Steel Manufacturers Association, American Iron and Steel Institute, Printing Industries of America, Inc., Non-Ferrous Founders Society, Precision Metalforming Association, Vanadium Producers & Reclaimers Association, AMT - The Association for Manufacturing Technology, Catfish Farmers of America, and American Textile Machinery Association.