Forest Products Industry

US Pacific County Superior Court Judge Donald J Richter rejected a lawsuit by anti-forestry groups claiming the Washington Department of Natural Resources (DNR) violated state laws in approving a timber sale in mature forest stands, also politically labelled as “legacy forests,” on public working forests known as state trust lands. Source: Timberbiz This case on the Freedom Timber Sale is the first to reach the merits stage in a long line of nearly identical legal challenges by anti-forestry groups to other sales developed through DNR’s timber program, including the Last Crocker Sorts, Carrot, Bologna, and the Stilly Revisited timber sales. The ruling affirms the agency’s forest practices in managing these lands. Under the state constitution and law, DNR state trust lands are required to be managed to provide revenues to defined beneficiaries, which include public schools, local public safety agencies, and various community services. These public working forests also provide clean water, wildlife habitat, climate change mitigation and recreational opportunities. As the representative of DNR timber purchasers, AFRC intervened in the litigation on behalf of its member Stimson Lumber because of its potential impact to the forest products sector and state trust land beneficiaries. “Judge Richter’s decision is a major win, not only for the DNR, but for state trust lands beneficiaries, our rural communities, and our forest sector that supports thousands of jobs and provide green, Washington-made wood products that store carbon and help combat climate change,” said AFRC President Travis Joseph.  “The case sets an important precedent and confirms that the agency is correctly balancing old-growth protections with sustainable timber harvesting on these working forests.” The case revolved around the classification of timber stands within the Freedom Timber Sale area. Anti-forestry groups argued the DNR misrepresented these stands as not being “structurally complex,” violating both the Public Lands Act and the State Environmental Policy Act. However, Judge Richter determined there were no “structurally complex” stands in the Freedom Timber Sale, and the agency approved the sale in compliance of its Habitat Conservation Plan (HCP) with the US Fish and Wildlife Service, and its own 2006 Policy for Sustainable Forests that guides the achievement of policy “targets” designed to sustain and develop old growth forests. In their ongoing legal campaign, anti-forestry groups have been challenging sales on state trust lands that have been determined to be suitable for sustainable timber harvesting activities under the HCP. Currently, nearly 800,000 acres of state trust lands in western Washington are already off-limits to timber harvesting under this science-based, landscape-scale HCP developed by state and federal scientists.  According to DNR data, older forests are projected to increase significantly over the life of the HCP. The same groups are also pushing the Board of Natural Resources and candidates for Commissioner of Public Lands to close an additional 77,000 acres of public working forests. Under this proposal, beneficiaries of state trust lands would lose an estimated US$1.35 billion in timber revenue over 15 years, while state, county and local governments would lose US$400 million in tax revenues generated by forest sector businesses. DNR would lose $600 million in timber revenue to fund agency operations and another US$100 million in road funding. “Ultimately, this case is about two different visions for our communities and forests,” Mr  Joseph said. “We believe we can and should steward our forests to help prevent wildfires and smoke, create jobs and economic opportunities that support rural communities, and meet our needs for carbon friendly wood products under the strongest labour and environmental laws on the planet.  Anti-forestry groups want to continue to control our public forests through litigation, stir up controversy and conflict in communities, and import wood from other countries that don’t share our environmental values, like Russia and Brazil, to meet our needs.  That’s what’s at stake in these constant anti-forestry legal challenges.” While anti-forestry groups claim these set asides will benefit our climate, a recent case study of a DNR timber harvest makes clear that proposals to set aside more DNR state trust lands will actually increase CO2 emissions as the supply of Washington-made wood products is reduced and carbon sequestration slows in these older forests.  

The Supreme People’s Court of China has directed judges nationwide to continue handing down harsh punishments against those who destroy forest resources. Source: China Daily It also disclosed details of four concluded environmental cases to highlight judicial efforts to protect the environment and beautify the country. In one case, three people in Huishui county, Guizhou province, were given prison terms ranging from 42 months to 44 months after they were found to have cut down Masson pine trees without permission. Two others who helped them transport the trees to mills for processing and sale received three-year sentences. In addition, the criminals were ordered to restore the damaged environment by purchasing forestry carbon credits and paying for the planting of replacement trees. “It’s a typical case in which everyone involved in the forest destruction was severely penalized, whether they were destroyers or transporters,” said Yang Di, a judge who specializes in tackling environmental cases at the top court. “The crackdown on illegal transport while fighting deforestation was conducive to strengthening the protection of forest resources,” she said, adding that the environmental restoration helped reestablish the dynamic balance of the regional ecosystem. In the past few years, the Miyun District People’s Court in Beijing has also ordered people who have damaged forests to repair them. After finding a villager surnamed Qi had cut down chestnut trees in fields to grow food crops in October 2019, the Miyun court chose the land and time and ordered Qi to plant new trees. It also supported a fine previously imposed by the district landscaping bureau. “Punishment is one thing. What’s more important is to enhance the legal awareness of forest vandals to help them realize the severity of the destruction and learn the necessity of environmental remediation,” the court said. “Only in this way can the environment be better protected and the ecology be balanced.” Data released by the Beijing High People’s Court on Wednesday showed that courts across the city concluded 374 environmental cases last year, 84 of which were related to deforestation, illegal hunting and illegal fishing. To increase the public’s awareness of the importance of protecting the environment, many courts in the capital have established education centers or stations to introduce environmental laws and examples of related disputes in communities or parks, said Li Xuhui, vice-president of the high court, adding that they have also endeavored to improve the handling of such cases. “A number of environmental specialists, for example, have become a think tank for the capital’s No 4 Intermediate People’s Court and Yanqing District People’s Court to assist judges in improving the quality of case hearings,” he said. Last month, the Pinggu District People’s Court set up a station at the Tianyun Mountain scenic spot, where tourists can learn about environmental laws and related issues.  

Canada’s International Trade Minister, Mary Ng, has criticized the US Department of Commerce for nearly doubling duties on Canadian softwood lumber, calling the increase unfair and unwarranted, as reported by Financial Post. Sources: BPM, Timberbiz The duties have been raised from 8.05% to 14.54%, which Ms Ng describes as “groundless and unfair,” arguing that they harm both consumers and producers on both sides of the border. This development is the latest in a long-standing bilateral dispute that Ottawa claims hinder efforts to improve the cost and supply of housing. The increase in the “all others” combined duty rate has sparked strong reactions from the government and industry in British Columbia. BC Forests Minister Bruce Ralston reiterated that the only solution to the dispute is the removal of the unfair softwood lumber duties. The US Department of Commerce determines duties under the Tariff Act based on whether goods are being sold below fair value or benefiting from subsidies provided by foreign governments. In Canada, lumber-producing provinces set stumpage fees for timber harvested from Crown land. US producers argue that these fees constitute an unfair subsidy since they are lower than market rates. Canadian lumber producers have already paid over Can$9bn in duties, which remain in deposit until the dispute is resolved. The BC Lumber Trade Council has stated that the increase exacerbates already challenging conditions for the industry. Canada is challenging the increased rates through a dispute panel under the Canada-US-Mexico Agreement (CUSMA). Ottawa has previously seen success at World Trade Organization dispute panels, which ruled that Canada’s stumpage-fee system is not a subsidy. Last year, a North American Free Trade Agreement (NAFTA) dispute panel found aspects of the US calculation of duties to be inconsistent with federal law. The fifth administrative review of the duties by the US Commerce Department, released recently, set the new rate slightly higher than the preliminary rate of 13.86 percent announced in February. This rate is expected to remain in effect until mid-August 2025, when the sixth administrative review will be applied. The move has been welcomed by the US lumber industry, including the US Lumber Coalition. The coalition’s chairperson, Andrew Miller, stated that the US does not need unfairly traded Canadian lumber imports to meet current levels of home construction. Minister Ng emphasized that it is in the best interests of both Canada and the US to find a lasting resolution to the dispute. She reaffirmed Canada’s commitment to defending the interests of Canadian workers, businesses, and communities reliant on softwood lumber. Unifor, representing 320,000 workers including 24,000 workers in Canada’s forestry sector, is disappointed and frustrated with the United States’ continued attack on Canada’s softwood lumber industry. Unifor says that the US falsely states that Canada’s softwood lumber harvested on public land constitutes unfair trade and uses this to justify its unwarranted penalties on exports and says it is an outrageous and reckless claim that, along with other industry pressures, puts Canadian jobs and the industry in peril.