WASHINGTON, DC - Environmentalists and First Nations welcome the US Department of Commerce decision to impose countervailing duties on Canadian lumber imports, to redress the imbalance caused by Canadian subsidies to forest companies. The US Department of Commerce affirmed that Canada subsidises its logging industry in today's preliminary decision in the countervailing duty case assessing a 19.3% retroactive duty on Canadian softwood lumber imports into the United States.

"With today's decision, the time has clearly come from reform of Canada's forest practices," Said Susan Casey-Lefkowitz, Senior Attorney with the National Resources Defence Council. "Although biting the bullet on forestry reform carries short term costs, in the long run it is better for the forests, the Canadian public, and the forest industry in Canada."

Canada and the US already have started a process for discussing solutions to the softwood lumber trade dispute. Forestry reform, including environmental protection and enforcement of environmental laws, is on the agenda, although First Nations issues are not.

"The message to the Canadian government and industry associations is clear: recognise Aboriginal Title and starts taking our proprietary interests into account," said Chief Manuel, Chairperson of the Interior Alliance of British Columbia. "Now is the time to take appropriate measures in Canada, so that we are not forced to continue to defend our proprietary interests on the land and before international trade tribunals."

"The same mechanisms, generous subsidies and over-cutting, that give Quebec companies a clear competitive advantage over the US also are contributing to the destruction of the Cree way of life," said Romeo Saganash, Grand Council of the Crees. "This decision shows Quebec and Canada the importance of addressing the full range of forestry reform issues, including First Nations concerns."

On May 10, 2001, NRDC, Defenders of Wildlife, the Northwest Ecosystem Alliance, the Grand Council of the Cree, and the Interior Alliance of BC petitioned the US Secretary of Commerce for duties on Canadian lumber over and above those asked for by the US timber industry. The groups claimed that Canada's systematic failure to enforce the Fisheries Act by allowing clear-cutting tot he banks of small fish-bearing streams was the equivalent of a subsidy tot he logging industry. They also claimed that violations of Cree treaty rights in Quebec and non-recognition of Aboriginal title of the Interior Alliance in British Columbia were subsidies to the logging industry.

Today's decision by commerce is the preliminary decision in then countervailing duty case concerning Canada-US softwood lumber trade. A final decision will be made by Commerce late 2001 or early 2002.