Arlington, Virginia. May 2, 2002 - The American Homeowners Grassroots Alliance today condemned the decision by the U.S. International Trade Commission to uphold a proposed 27% tariff on Canadian lumber, which is used extensively in new U.S. home construction and remodeling. According to Congressman Gary Miller (R-CA) and members of the Building A Better America Caucus (BABAC) who opposed the border tax, the tariff will result in an approximate $1,500 increase in the price of a new home.

"Many communities in this country are facing a housing crisis," stated Caucus Chairman Gary Miller. "Increasing the cost of the most basic home building material will only exacerbate this crisis." American Homeowners Foundation President Beth Hahn agreed. “This is a terrible decision which will mean that 300,000 to 450,000 U.S. families will be priced out of the housing market. The only winners in this effort are the few well-healed U.S. lumber companies - International Paper, Potlatch, Plum Creek, Sierra Pacific, Temple Inland - who funded the multimillion dollar campaign.

"Sadly, this action by the ITC makes the American Dream harder to achieve, especially for new Americans -- those striving to join the middle class and provide a home for their families," said Rep. Ken Calvert (R-CA). Although Canada may appeal the decision to the World Trade Organization and a NAFTA binational panel, this process could take up to 18 months.

AHGA urges Canada to appeal the decision that will hurt U.S. home buyers, workers in Canada’s timber industry, and workers in the U.S. construction trades. Independent review panels have investigated Canada’s timber pricing on three occasions. In each case where there was a final decision, Canada was found innocent of providing unfair lumber industry subsidies. AHGA is confident that Canada will again prevail with its current cases before NAFTA and the WTO. Unfortunately that will require a lengthy legal challenge while U.S. home buyers must pay this unfair tax. To avoid this problem AHGA urges the President to negotiate a compromise with Canada that would cause less injury to U.S. home buyers.

The American Homeowners Grassroots Alliance (AHGA) is a national bipartisan advocacy organization representing the nation’s 70 million homeowners. AHGA believes that policies that encourage and protect home ownership are in our national best interest. Those policies encourage and sustain the maintenance of a strong and broad middle class, build a sense of community and responsibility, and facilitate investment in homes, which are the largest, most universal savings/equity-building vehicle for most Americans. AHGA’s positions and more information about the organization are available at www.AmericanHomeowners.org. The American Homeowners Foundation’s section of the website also contains free educational materials to help homeowners and future homeowners buy, sell, remodel, and finance their homes.

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