The Trade Adjustment Assistance part of the bill provides a 65 percent tax credit to help workers dislocated by trade to buy health insurance. It also extends existing financial and training benefits for those affected by trade to secondary workers such as suppliers to plants hit by foreign competition. The task of approving the "fast track,” or trade promotion, authority and worker benefits now falls on the Senate. “We hope that they will pass the bill before they leave for the August recess” said Ms. Hahn.

Even better news for homeowners is the July 26 preliminary ruling by the World Trade Organization (WTO) that countervailing duties imposed by the U.S. Commerce Department on imports of Canadian softwood lumber should be rescinded.

"It is unfortunate that pressure from timber interests lead to the Commerce Department’s protectionist decision to impose a tax on home buyers who are now paying duties averaging 27.2 percent on Canadian lumber," said the AHGA President. "Adding between $1,000 and $2000 to the cost of new U.S. homes in these perilous economic times is bad policy. We are glad that the cases before the WTO and the North American Free Trade Agreement (NAFTA) will result in the total or partial repeal of the tariffs."

In a letter to President Bush (attached) AHGA thanked the President for his support of free trade and congratulated him on his victory on the trade legislation. In the same letter AHGA urged the President to stand down from further efforts to defend the new home tax. “Now that the WTO has ruled, there is no further reason for the Administration to defend this anticompetitive tax that will only drive our country into a deeper recession” according to the AHGA President. “Better to be consistent with the principles of free trade the President has long espoused and let this terrible tax die”, she added.

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.

July 29, 2002

The Honorable George W. Bush

President

United States of America

1600 Pennsylvania Ave., NW

Washington, DC 20500

Dear Mr. President:

On behalf of the nation’s 70 million homeowners we write to thank you for your support of free trade, and to congratulate you on the House passage of legislation both enacting “fast track” negotiating authority and extending more benefits to Americans hurt by foreign competition. We also ask you to support America’s homeowners in another victory for free trade that also occurred last Friday.

Homeowners and other consumers in the U.S. and other countries benefit from free trade through overall savings in the total cost of goods and services. In a world economy that changes with increasing speed it is also appropriate to address the inevitable dislocations that result with a substantial trade adjustment package that provides assistance while dislocated U.S. workers re-skill. This is a far more preferable approach than erecting protectionist barriers that cost all consumers and hurt far more people than they protect.

We pledge our support for this important legislation and join you in urging the U.S. Senate to pass this measure before it adjourns for the August recess.

We hope you will join us in celebrating another victory for free trade. Also on Friday the World Trade Organization (WTO) ruled that countervailing duties imposed by the U.S. Commerce Department on imports of Canadian softwood lumber should be rescinded. This tax on new U.S. homes is adding between $1,000 and $2,000 to the average cost of a new U.S. home. With real estate one of the few remaining healthy spots in our otherwise challenged economy, the importance of repealing this protectionist tariff cannot be overstated.

The WTO’s decision confirms our belief that your administration has been provided inaccurate information on this important issue. It presents a timely opportunity for you to reconsider the facts on this issue.

When you consider the WTO’s decision and other facts we believe that you will agree that it is now time to stand down from further support of the new home tax. With the likely enactment of a substantial trade adjustment package to help any future displaced U.S. timber industry workers, there is even less reason to continue to support the new home tax. Our economy doesn’t need this tax right now. What it needs is an economic boost, not a subsidy for the small U.S. timber industry.

Thank you for your consideration. We hope that we may soon write to congratulate you on the final passage of the “fast track” bill as well your decision to support the nation’s homeowners by withdrawing support of the new home tax.

Sincerely,

Beth Hahn