Bands claiming tariff exemption on forest products

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British Columbia may have found a way around the crippling American tariffs and duties on softwood lumber, and First Nations stand to benefit.

"Access that First Nations timber can have to the U.S. market, duty-free, is an advantage that First Nations can enjoy,"

B.C. Forests Minister Mike DeJong said Jan. 28 at the Port Alberni Ministry of Forests office, "In the document that U.S. Under-Secretary of Commerce Mr. Aldonis tabled several weeks ago, he referred favorably to greater First Nations involvement in the forest economy, and how that actually enhances market activity," he said.

Because First Nations are able to bring goods across the U.S./Canada border under the Jay Treaty and other international agreements, logs cut and lumber produced by First Nations' companies could be exempt from the 28 per cent duties that have caused mills on both sides of the border to shut down, DeJong said.

DeJong was in Port Alberni to sign two separate agreements with two pairs of Nuu-chah-nulth nations who will soon be testing his theory.

The Ditidaht and Pacheedaht nations signed an agreement with the Ministry of Forests for a tenure allowing them access to 300,000 cubic metres of wood over the next 10 years. Similarly, the Huu-ay-aht and Uchucklesaht First Nations signed a similar Interim Measures Agreement Forest Tenure for 265,000 cubic metres of wood over a still-to-be-determined amount of time.

According to Ditidaht Chief Councillor Jack Thompson, the tenure agreement will be worth $3 million to $4 million to Ditidaht and Pacheedaht, who will be forming their own logging crews and milling most of the wood at the Ditidaht mill and selling some logs on the open market.

"This agreement means economic development for our nation and fibre for our mill," said Thompson, who attended the signing ceremony with a number of chiefs, councillors, and members of his nation. "Times are hard in the forest industry but we've persevered and created employment. It's a positive step and a small stepping stone towards what we want in a treaty," he said.

DeJong, who had visited the Ditidaht mill last year, said he was impressed by Ditidaht's efforts in constructing a viable mill, and their determination towards greater involvement in the forest industry.

"These are tough times in the forest industry and fibre supply is a problem," said DeJong. "This is a very important step in creating a situation where benefits come to people and communities, and I congratulate everyone involved in this effort for getting the job done."

DeJong credits new legislation he created for paving the way to new agreements with First Nations.

Under the legislation, forest companies that do not meet the targets of their annual allowable cut (AAC) have the left-over cubic metres awarded to First Nations in a non-competitive process. In the past, undercut would go to a competitive bidding system where any forest company could bid on the right to harvest the undercut within another forest company's tenure.

"This is the first use of the new legislative instrument to expedite the rewarding of tenure opportunities to First Nations," DeJong said. "The legislation allows direct award of AAC tenures to First Nations without going through a competitive bid process, but is still transparent and open," he said.

DeJong then met with the Huu-ay-aht and Uchucklesaht nations who have formed a joint venture company with Weyerhaeuser to harvest their 265,000 cubic metre tenure.

"This means a profit to the communities, economic development, and employment opportunities for some of our members," said Huu-ay-aht Chief Councillor Robert Dennis. "We've hired Coast Forest Management to help us develop a business plan for our new company A-We-Sum Forest Products, and we hope to begin cutting sometime this year."

The Huu-ay-aht First Nation and Weyerhaeuser have been partners in a log salvage operation over the past few years, and that relationship led to their involvement in the nw joint venture, said Dennis.

Weyerhaeuser will have a minority share in the company, but will offer technical advice and help provide access to log and lumber markets.

Uchucklesaht Chief Councillor Charlie Cootes Sr. said, "This tenure agreement means capacity building and jobs for our community, as we decided a long time ago that we were going to pursue economic development and aim for 100 per cent employment in our communities."

Cootes and Dennis joined in complimenting the provincial Liberal government for "living up to their word" and fast-tracking the tenure agreements.