Forest Products: Trade Policy Highlights


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	FOREST PRODUCTS TRADE POLICY HIGHLIGHTS - JULY 2004
	Japan Local Government to Support Use of Local Wood
	According to an August 4^th article in the Jutaku Sangyo Shimbun, Ibaragi Prefecture has initiated a program, “Wood Care Action Program Ibaragi” to promote the consumption of wood products from the Prefecture. The Prefecture will provide a subsidy of up to $1,800 (200,000 Japan Yen) for a wooden house built in areas designated by the Prefecture using 50 percent or more local wood. Subsidies will also be made available to Japanese Agricultural Standards (JAS) certified sawmills and drying plants. The program encourages increased use of local wood by the private sector for houses by means of providing technical support and information services and is slated to run through 2010.

	WTO Appellate Body Upholds Ruling Against the United States’ in Use of “Zeroing” in Softwood Lumber Dispute
	On August 11, 2004, a WTO appellate body upheld earlier Panel findings that the United States improperly calculated the margins used to determine antidumping (AD) rates for Canadian softwood lumber by incorporating the practice of “zeroing”. Zeroing is the practice of assigning a margin of zero to goods for which the export price exceeds the home market price. The Panel did not rule on the use of the “zeroing” generally, but concluded that the use of “zeroing” as applied by the United States in this case was inconsistent with WTO rules. The WTO did not challenge the United States’ basic right to impose the AD duties.