The Hardwood Federation produces a “D.C. Cheat Sheet” newsletter to keep the industry up-to-date on the latest news from Washington D.C. Check out the May 21st edition below and sign up to receive your copy.
Transportation Bill Moves in House Committee: The first step of the highway bill reauthorization produced a mixed bag of results for the forest products sector. In the positive column, gross vehicle weight exemptions for Arkansas, Iowa, Louisiana, Wisconsin, and North Carolina were included in the underlying measure and approved during committee consideration. These provisions generally will allow trucks carrying logs, chips, or biomass traveling at the maximum gross weight on state roads to access the interstate highway system within each state’s lines. Unfortunately, a broader truck weigh reform amendment based on the FRESH Act (Freight Restriction Elimination for Safer Hauling Act) failed in committee. That amendment would have authorized all states to allow trucks carrying perishable commodities to access the interstate at maximum state gross vehicle weights. The definition of “perishable commodities” applies to raw unfinished forest products including logs, pulp wood, biomass, or wood chips.
While we are encouraged by progress in the selected states mentioned above, we will continue to press for more comprehensive gross vehicle weight language as the reauthorization measure proceeds through the House and Senate. This will be one of the key issues of discussion during the upcoming Hardwood Federation Fly-In to D.C.
Latest EUDR “Simplification” Does Nothing for U.S. Wood Products: According to analysis by the American Hardwood Export Team (AHEC), the recently released simplification and updated report on the European Union Deforestation Regulation (EUDR) fails to improve market access for wood products exporters to the European Union (EU) and unfairly favors EU-based over non-EU-based products. The Hardwood Federation will be raising this significant non-tariff barrier with Trump Administration officials and members of Congress during our upcoming Fly-In to D.C. and will continue to work closely with AHEC and our wood products association allies to push U.S. government action.
Ongoing EUDR Conflict Inspires House Bill: On May 12, Rep. Lloyd Doggett (D-TX), introduced the Trade Responsibly for Environmental Emissions (TREE) Act. The bill emulates the European Union Deforestation Regulation by prohibiting importation into the U.S of commodities and products derived from lands affected by deforestation or forest degradation.
Specifically, the bill prohibits import and sale in interstate commerce of “deforestation goods,” which includes cattle, cocoa, palm oil, rubber, soy, wood, and derived products, from lands affected by deforestation or forest degradation since 2020. Importers would be required to file a due diligence statement with Customs and Border Protection (CBP) as part of the compliance process. Like the EUDR, a risk categorization list would be developed by the U.S. Trade Representative (USTR) designating countries’ risk levels. Countries with the highest risk, Level 1, would be subject to CBP inspection of at least 9 percent of imports; Level 2 countries would be subject to CBP inspection of at least 3 percent of imports; and Level 3 countries would be subject to CBP inspection of at least 1 percent of imports. Risk categorizations would be based on the rate of deforestation and forest degradation, the rate of the expanding agricultural lands and production trends for covered items.
Considering the strict partisanship of this legislation’s sponsors, it is effectively dead in the current Congress, but the HF team will continue to monitor and work with our allies at the American Hardwood Export Council to address the shortcomings of the EUDR both at the Congressional and administrative levels.
Source: Hardwood Federation