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WASHINGTON - A recent ruling by the World Trade Organization adds to the sense of uncertainty that already existed within Montana's softwood lumber industry.

"It is the instability," Montana Wood Products Association executive vice president Ellen Engstedt said. "We don't need more instability. I was dismayed when I saw the latest ruling. It was basically, 'Here we go again.' The back and forth and the reversals do not bode well for us."

The international organization ruled on Tuesday that major U.S. trading partners could impose sanctions on the United States in response to a trade law that the organization had already ruled was illegal.

The law is commonly referred to as the Byrd Amendment, because it was authored by Sen. Robert Byrd, D-W.Va. Under the amendment, the United States can impose fines on foreign companies that are selling their products below cost in the United States and then give a portion of that money to their U.S. competitors. For the Montana softwood lumber industry, that means it could receive a portion of the

$2.6 billion in fines that Canadian companies have paid since 2002.

Sen. Max Baucus, D-Mont., said he was disappointed by the decision and promised to either defend the Byrd Amendment or work on a law that accomplishes the same goal without violating WTO regulations.

"This money is critically important - especially to Montana lumber companies - to level the playing field on the unfair practices of Canada and some of our other trading partners," Baucus said in a statement.

"For changes to the Byrd Amendment to be acceptable, we're going to have to find another way to ensure that we compensate companies and workers who have been hurt by unfair trade practices or find a better way to prevent unfair trade practices altogether," he said.

Plum Creek Timber Co. vice president for manufactured product Henry Ricklefs said although the company supports the Byrd Amendment, the law has made it more difficult to settle the softwood lumber dispute between the United States and Canada. The U.S. Commerce Department levied the $2.6 billion in fines after determining that Canadian provinces unfairly subsidize their softwood lumber companies.

"The magnitude of the deposits tends to distract people from reaching a settlement," Ricklefs said. "It's just human nature. People are thinking less about settling the dispute and instead how to divide up the money."

Ricklefs said Plum Creek, which is based in Seattle but is the largest timber company operating in Montana, would like to see negotiators reach an agreement.

"We are more interested in solving this dispute in a way that leads to a level playing field," Ricklefs said.

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