Builders say talks on softwood lumber should remain outside Asia-Pacific trade deal

Homebuilders don't want a lumber agreement between the United States and Canada to become part of negotiations on an Asia-Pacific trade deal. 

The National Association of Home Builders (NAHB) on Monday called on U.S. trade officials to avoid using the Trans-Pacific Partnership (TPP) as a means of renegotiating the U.S.-Canadian softwood lumber agreement prior to its 2015 expiration, arguing it would undermine the successful negotiation of the trade pact.

The talks should not be bogged down "with a century-old dispute between the United States and Canada on softwood lumber that has yet to achieve a final resolution," Jerry Howard, chief executive of the NAHB, told U.S. trade officials. 

"Softwood lumber issues are too important to get lost in the context of a multinational trade negotiation and must be addressed by the U.S. and Canada in a bilateral forum," he said. 

Howard expressed concern that any artificial trade barriers on lumber, one of the most important and expensive components of homebuilding, and other materials could have significant economic consequences and weigh on the gradually improving housing market. 

"Any unnecessary trade restraints that result in price hikes or shortages would harm housing affordability and have a negative effect on the nation's economy," he said. 

Canada and Mexico are the latest countries to take a seat at the TPP, negotiating with nine other nations, including the United States, this fall. 

The U.S. Trade Representative (USTR) held a public hearing Monday on issues related to Canada’s participation in the negotiations.

Nearly a dozen industry associations testified, including the AFL-CIO, U.S. Chamber of Commerce, International Dairy Foods Association and Association of Global Automakers. 

Groups such as the National Chicken Council, which also testified Monday, have joined with the milk industry in pressing for Canada to remove trade restrictions on their U.S. exports. They argue that Canada has violated the 1994 North American Free Trade Agreement because of its tariffs and other restrictions on imports. 

They have repeatedly called for Canada to open its market to give U.S. exporters a fair shot at sending their products north and said Canada should agree to those changes to gain entry into TPP talks. 

“The administration will continue to ensure that we hear from the widest possible range of stakeholders in Washington and from across the country as we move forward in these negotiations," said U.S. Trade Representative Ron Kirk. 

The nations — the United States, Australia, New Zealand, Chile, Peru, Singapore, Vietnam, Malaysia and Brunei — which have been negotiating for more than two years, wrapped up their 14th round of talks this month.

They are aiming to complete a deal sometime next year.