Hern leads bipartisan letter to USTR Amb. Tai on lumber shortage
Washington, May 17, 2021
By: Congressman Kevin Hern Press Release
Today, Representative Kevin Hern (OK-01) sent a bipartisan letter to US Trade Representative, Ambassador Katherine Tai, regarding steep increases in the price of lumber. The letter urges Ambassador Tai to resolve softwood lumber trade issues with Canada to help alleviate the rising costs of lumber. This letter follows Rep. Hern’s discussion with Ambassador Tai at last week’s Ways and Means hearing on US trade policy.
Including Rep. Hern and Democrat co-lead Rep. Brian Higgins, 96 Members of Congress signed the letter.
The letter can be found here and below.
May 17, 2021
The Honorable Katherine Tai
Dear Ambassador Tai,
Congratulations on your unanimous Senate confirmation as U.S. Trade Representative. We look forward to working with you in advancing an ambitious trade policy that prioritizes American jobs and economic growth.
We are also writing to express our shared concern over reports of sharp increases in the cost of lumber. Fortunately, construction has remained an essential activity through the coronavirus crisis. However, this has resulted in an increased demand for lumber and shortages nationwide. Consequently, lumber prices have skyrocketed more than 300% since last spring.
This increase in lumber demand and cost has significantly and directly affected the housing market. In December 2020, the Federal Housing Finance Agency (FHFA) announced that, despite the severe pandemic-induced economic downturn, its index of house prices had risen 10.2 percent over the course of a year, and 1.5 percent in just the single month of October – which marks an 18 percent annualized increase.
Our economy struggles when businesses feel uncertainty in the market. With the economy stressed, as a result of the coronavirus pandemic, the US government should make every effort to help create certainty and predictability in our supply chains.
The 2021 Trade Policy Agenda acknowledges that “strong trade enforcement is essential to making sure our trading partners live up to their commitments and that U.S. trade policy benefits American workers, manufacturers, farmers, businesses, families, and communities.”
At present, the United States and Canada lack an agreement governing the trade of softwood lumber. Efforts to resolve this issue before the World Trade Organization (WTO) have stalled. The result is unnecessary cost increases to industries that use softwood lumber, such as residential home construction. We now call upon you to represent American interests on this critical issue by pursuing a balanced agreement with Canada. We, as Members of Congress, stand ready to discuss this issue and potential solutions with you. We consider such a balanced agreement to be in the interest of the United States because it would provide predictability for lumber producers and homebuilders so they can continue to help the economy recover from the events of the past year.
Thank you for your attention to this urgent matter and for considering our request.
The additional 94 Members of Congress on the bipartisan letter are:
Devin Nunes (R-CA), Darin LaHood (R-IL), Adrian Smith (R-NE), Jackie Walorski (R-IN), Brad Wenstrup (R-OH), David Schweikert (R-AZ), Vern Buchanan (R-FL), Tom Reed (R-NY), Lloyd Smucker (R-PA), Jodey Arrington (R-TX), Mike Kelly (R-PA), Mike Thompson (D-CA), John B. Larson (D-LA), Ron Kind (D-WI), Danny K. Davis (D-IL), Steven Horsford (D-NV), Jimmy Panetta (D-CA), Bradley S. Schneider (D-IL), Daniel T. Kildee (D-MI), Bill Pascrell, Jr. (D-NJ), Dina Titus (D-NV), Blake Moore (R-UT), Doug Lamborn (R-CO), Donald J. Bacon (R-NE), Stephanie Bice (R-OK), Ed Case (D-HI), Ralph Norman (R-SC), Brian Fitzpatrick (R-PA), Jim Costa (D-CA), Greg Steube (R-FL), John Curtis (R-UT), Jim Banks (R-IN), Rick W. Allen (R-GA), David B. McKinley, P.E. (R-WV), Jeff Fortenberry (R-NE), Chris Jacobs (R-NY), Jeff Van Drew (R-NJ), Debbie Lesko (R-AZ), Anthony Gonzales (R-OH), David Kustoff (R-TN), David G. Valadao (R-CA), Glenn Grothman (R-WI), Bill Posey (R-FL), Ed Perlmutter (D-CO), Ken Calvert (R-CA), Joe Courtney (D-CT), Scott Perry (R-PA), Roger Williams (R-TX), William Timmons (R-SC), Burgess Owens (R-UT), Tracey Mann (R-KS), Ronny Jackson (R-TX), Scott Franklin (R-FL), J. Luis Correa (D-CA), Ann Wagner (R-MO), Ben Cline (R-VA), John Yarmuth (D-KY), Josh Gottheimer (D-NJ), Scott H. Peters (D-CA), Louis Gohmert (R-TX), Cindy Axne (D-IA), Chip Roy (R-TX), Chris Stewart (R-UT), Michael C. Burgess, M.D. (R-TX), Greg Pence (R-IN), Brett Guthrie (R-KY), Tim Walberg (R-MI), Mike Gallagher (R-WI), Ashley Hinson (R-IA), Michelle Fischbach (R-MN), Young Kim (R-CA), John Rose (R-TN), French Hill (R-AR), Jim Hagedorn (R-MN), Mark Green, M.D. (R-TN), Randy Feenstra (R-IA), Beth Van Duyne (R-TX), Tom Cole (R-OK), Steve Womack (R-AR), Ken Buck (R-CO), Marianette Miller-Meeks (R-IA), Steve Chabot (R-OH), Peter Meijer (R-MI), Warren Davidson (R-OH), James Comer (R-KY), Jim Baird (R-IN), Jake LaTurner (R-KS), Michael Cloud (R-TX), Sharice L. Davids (D-KS), Virginia Foxx (R-NC), Tony Cárdenas (D-CA), Ted W. Lieu (D-CA), Andy Barr (R-KY), and Tom Emmer (R-MN).
Supporting groups: National Association of Home Builders (NAHB), Associated General Contractors of America (AGC), National Association of REALTORS, Manufactured Housing Institute, American Public Gas Association, National Housing & Rehabilitation Association, and National Affordable Housing Management Association (NAHMA).