Home Depot defends Canada
Letting Canadian lumber in wouldn't hurt U.S. producers

ATLANTA - Allowing Canadian lumber into the United States duty-free would not harm U.S. producers because there is an expanding market for their products, the chairman and chief executive of Home Depot said yesterday.

Bob Nardelli said after meeting Jean Chrétien, the Prime Minister, that Home Depot alone plans to add 200 stores this year so there is room to grow for both countries' product. Canadian and U.S. softwood are different products used for different purposes. The U.S. lumber industry is trying to block Canadian imports, which they say are illegally subsidized, through the imposition of punitive tariffs that could amount to billions of dollars.

"This should not be a concern about our southern growers losing a competitive position," he said. "By no means would a favourable resolution in soft lumber result in lower purchases from our southern growers."

Mr. Nardelli warned such a move would deprive U.S. consumers of products they want for home projects, such as Canadian spruce, and would force Home Depot to look elsewhere for supply.

"We would have to look outside Canada," he said. "Some of the proposed tariffs of 67% to 70% would have a negative impact on our ability to purchase and redistribute here in the U.S."

Mr. Nardelli was not the only executive to meet with the prime minister during his 24-hour visit to Atlanta in support of a trade promotion mission by the four Atlantic provinces. Executives from Georgia Pacific, a lumber producer, also attended an investors' round table.

Georgia Pacific is almost alone among major U.S. lumber companies in not supporting industry petitions demanding duties, but an official declined comment yesterday other than to say the company hopes the issue is resolved soon.

Mr. Chrétien raised the softwood issue with Roy Barnes, Governor of Georgia, at a state dinner Monday night.

"That gave us the occasion [to say] that we want free trade with you, but not only on the things you like. It should be free trade on everything," Mr. Chrétien said.