KATRINA MIGHT SPUR FEDS' ACTION ON CEMENT, LUMBER DUTIES

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By coincidence, the Southern Tier Cement Committee's move to support the Coalition for Fair Lumber Imports' challenge of North American Free Trade Agreement provisions (see companion item below) took place the day after U.S. Treasury Department officials indicated the potential for easing duties on imported cement and lumber if price spikes arise from product demand tied to Hurricane Katrina rebuilding.

A Sept. 12 Associated Press report noted that a Treasury Department spokesman, Tony Fratto, said the federal government could adjust duties or tariffs in an emergency, but would not make a determination on lumber or cement until it had more information on pricing effects. Discussion of the tariffs was raised as Treasury Secretary John Snow, Labor Secretary Elaine Chao and Commerce Secretary Carlos Gutierrez visited with state and local officials, hurricane victims and relief workers in the Gulf Coast. Secretary Gutierrez is no stranger to the matter of cement duties. Amid tight supply conditions created by record powder demand in many markets this year, he has received requests from the Associated General Contractors of America, Precast/Prestressed Concrete Institute, and Florida, Nevada, New Mexico, South Dakota, and Utah governors to review antidumping duty orders that have applied to Mexican cement imports since 1990.

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