How US politics works

Posted: 10 April 2008 in International Paper, PULP Inc, USA

Two pieces of news. One involves a pulp and paper giant and the other an industry association. Both are lobbying government to further their interests.

First the industry association: The American Forest & Paper Association (AF&PA) is currently lobbying the US Congress to approve the US-Colombia Trade Promotion Agreement. AF&PA likes the trade agreement because “Eliminating tariffs and expanding access to foreign markets for U.S. products will boost the American manufacturing sector and create jobs.” In 2007, US exported more than US$213 million worth of wood, pulp and paper products to Colombia.

When the trade agreement is implemented, the US will be able to export 44% paper product, and 69% of wood products with zero tariffs. Within seven years, tariffs on almost all other products will be eliminated. The average Colombian import tariff on paper products is currently 12.5%. For wood products it is 12.3%.

Meanwhile, in 2007, International Paper spent nearly US$2.5 million lobbying the federal government on trade, tax and energy issues. IP lobbied Congress on issues including farm spending, energy legislation, trade with Russia, China and Brazil and other and trade issues, including legislation banning the use of illegally harvested wood products imported from overseas.

Democracy, anyone?

  1. Chris Lang says:

    According to Associated Press, in the first quarter of 2008, International Paper spent nearly $806,000 lobbying on energy and climate change legislation and other issues.

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