The November elections have brought about change in the political setting on Capital Hill, and the U.S. forest products industry must converge to meet new legislative challenges.

by Juanita Duggan, President/CEO, AF&PA

In the three months since I have taken the reins of AF&PA from my predecessor W. Henson Moore, we have achieved some major policy successes for the industry and seen the political landscape shift dramatically.

On December 20, President Bush signed into law two major bills that were legislative priorities for AF&PA in 2006. The Gulf of Mexico Energy Security Act will address natural gas prices for our mills and converters and The Postal Accountability and Enhancement Act will ensure that marketplace demand for paper products is no longer affected by unpredictable and dramatic postal rate hikes.

I have worked on federal policy and legislation in Washington for many years, from the U.S. Senate to the White House and with several trade associations, and to see two major pieces of legislation enacted in a lame-duck session of Congress was truly a remarkable achievement. However, the November elections created a new political landscape in Washington that has emboldened extremists and we need to be prepared for the challenges ahead as well as opportunities.

Some disturbing trends are emerging. We are entering a period of increased environmental extremism and the change in Congress will give the extremists an outlet they have been denied for over a decade. AF&PA has the national credibility and organization that the industry needs to prevail in these debates with common sense and scientifically sound policy. The recent Victoria's Secret controversy, and the December 24 article in The Washington Post on the extremists' efforts to undermine the Sustainable Forestry InitiativeŽ (SFI), are just the beginning of the public attacks we will face.

In the past 12 years we were able to seek incentives and other policies that promoted better business practices or lower tax rates, but now the politics of the deficit have caught up with tax policies and we will face challenges in advancing our agenda of lower taxes. There will also be opportunities for some of our policy goals. Among the areas for success are in renewable resources and policies to lower the cost and improve service for transportation of our products. But, the reality is that we are now entering a time where overall policies coming out of Washington are likely to be more punitive and risky for America's job providers.

More than ever, now is the time for us to come together under the AF&PA banner to defend the industry against erroneous accusations and costly regulation and to promote the positive things we do such as being leaders in recycling and planting trees. We also need to be prepared for major fights on natural resources and tax policy and it will test the will of the industry. It is going to be absolutely necessary for us to speak with one voice and remain unified.

Battles could erupt with far-reaching consequences on endangered species, the Clean Water Act, the Clean Air Act, sustainability, and certification. Many well-intentioned laws and programs have become abused by extremists as vehicles for their irrational agendas and setbacks in any of these areas would be very costly to our industry and the family-sustaining jobs we provide.

The primary purpose of an association—and the reason organizations like AF&PA were created—is to be an insurance policy and bulwark that stops bad things from happening. We are going back into the era where we are all going to be reminded of why we created this insurance policy that no company can really afford to be without.

So, while I intend and fully expect to continue to achieve successes on Capitol Hill, our victories now will include how many damaging proposals we stop. From unfair trade practices, to bad energy policies, to the recession in the home-building market, our industry and the communities that depend on us have been under competitive pressure for a long time and we cannot afford any setbacks.

I encourage everyone with a stake in the forest products industry to check out AF&PA's website www.growthevote.com where you will find the voting records of your state and federal legislators. We need to be vigilant about creating a positive business environment and AF&PA will be fighting to achieve our goals, working to promote our industry, and ensuring we continue to contribute to a robust economy.

Juanita Duggan was named President and CEO of the American Forest & Paper Association (AF&PA) on October 25, 2006. Formerly, Ms. Duggan served as President and CEO of Wine and Spirits Wholesalers of America, and prior to that, served as Vice President, Federal Relations for Philip Morris Companies.

Ms. Duggan has served two U.S. presidents as a member of the White House staff. She was Special Assistant to the President for Cabinet Affairs under President George Bush. She served President Reagan as Special Assistant to the President and Executive Secretary of the Domestic Policy Council, and earlier as Special Assistant to the President for Public Liaison.

PaperAge. Copyright © O'Brien Publications, Inc. All rights reserved.