U.S. gives US$450M to U.S. agencies, Habitat for Humanity after softwood agreement finalized
TORONTO (CP) - The United States government is giving almost half a billiondollars to charitable agencies in the country under the Canada-U.S.softwood lumber deal.
"I am pleased that, in consultation with the Canadian government, we were
able to fund worthy causes that will meet fundamental needs in the forestry
sector to the benefit of both countries," U.S. Trade Representative Susan
Schwab said Friday in a release.
"The meritorious initiative funds promote a stronger North American lumber
industry by connecting sustainable forest practices in the woods with the
communities where wood products are made, and the use of lumber in building
low-income housing and rebuilding after disasters."
Under a US$450-million provision in the agreement that went into effect
Thursday, the U.S. government said it will create endowments in the amounts
of $200 million to the United States Endowment for Forestry and Communities
Inc. and $150 million to the American Forest Foundation (read Tree Farm
here) and a $100-million revolving loan fund to Habitat for Humanity
International.
The seven-year accord replaces U.S. duties on Canadian softwood with a
sliding export tax that adjusts for low lumber prices.
Prime Minister Stephen Harper said Thursday that the new deal was necessary
to bring stability to a troubled industry and has not had an impact on jobs
lost in the sector.
Several forestry giants have announced job cuts in recent weeks, including
more than 1,600 this week alone at mills in Quebec and Ontario.
On Wednesday, Domtar Inc. (TSX:DTC) announced the indefinite closure of
four sawmills and about 950 job cuts, most in Quebec. A day earlier,
Abitibi-Consolidated (TSX:A) said it was cutting nearly 700 jobs in Quebec.
Harper said the minority Conservative government planned to come forward
with "additional measures" to help the forestry industry but did not
elaborate on what those might be.
