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Lumber prices
OKLAHOMA CITY — Three Oklahoma members of Congress were among nearly 100 asking U.S. Trade Representative Ambassador Katherine Tai to do more to lower the cost of lumber in the United States.
Rep. Kevin Hern, R-Tulsa, led the bipartisan letter after his discussion with Ambassador Tai at last week’s House Ways and Means hearing on U.S. trade policy.
The House members expressed concerns over “sharp increases” in the cost of lumber, noting that prices “have skyrocketed more than 300% since last spring” and that construction remained an essential activity during the coronavirus crisis.
“This increase in lumber demand and cost has significantly and directly affected the housing market,” the 98 Representatives noted.
The Representatives reported that the index of house prices in December 2020 rose 10.2% over the year and 1.5% in October, “which marks an 18% annualized increase.”
The United States and Canada lack an agreement governing the trade of softwood lumber. “Efforts to resolve this issue before the World Trade Organization have stalled,” the Representatives wrote. “The result is unnecessary cost increases to industries that use softwood lumber, such as residential home construction.”
The Representatives urged Tai to “represent American interests on this critical issue by pursuing a balanced agreement with Canada,” which would “provide predictability for lumber producers and homebuilders.”
Joining Hern in the letter were Reps. Tom Cole, R-Moore, and Stephanie Bice, R-Oklahoma City.