The American Forest & Paper Association (AF&PA) is calling on the Office of the United States Trade Representative (USTR) to exempt Brazilian bleached eucalyptus kraft pulp (BEK) from proposed Section 301 tariffs, warning that the material is “indispensable” to the U.S. tissue industry and cannot be sourced domestically at commercial scale. In a formal letter sent to the USTR, AF&PA stressed that BEK’s unique fibre qualities—namely its softness, strength, and absorbency—are critical for producing high-quality tissue products used daily by American consumers. “Domestic eucalyptus production is extremely limited,” the association warned, noting that viable growing areas are confined to small regions in coastal California and Hawaii, which cannot meet industrial-scale demand.
The investigation, launched under President Trump’s directive, is examining whether Brazil’s trade practices—namely its digital policy, ethanol access, and illegal deforestation—are discriminatory or burdensome to U.S. commerce. A public hearing will start next month (September 3) to gather testimony.
AF&PA warned that tariffs on Brazilian pulp would raise input costs, reduce profitability, and undermine the competitiveness of American-made tissue products. “This could shift market share toward foreign producers and jeopardise jobs in a sector that employs more than 925,000 workers across rural America,” the group said. According to AF&PA, each forest products job supports an additional 3.25 jobs in supplier industries and local communities.
The association also defended the sustainability of Brazilian eucalyptus pulp, stating that member companies source more than 99% of their fibre from plantations certified under the Sustainable Forestry Initiative (SFI), Forest Stewardship Council (FSC), and Programme for the Endorsement of Forest Certification (PEFC). “These plantations are not linked to illegal deforestation,” AF&PA noted, which directly addresses one of the core issues under review in the Section 301 probe.
At the same time, the AF&PA expressed strong support for the 2008 amendments to the Lacey Act, which prohibit trade in wood or plant products harvested in violation of U.S. or foreign laws. “This law promotes supply chain transparency and responsible sourcing,” the group said, adding that it works closely with the U.S. Department of Agriculture to ensure enforcement. The association also cited President Trump’s Executive Order 14323, under which eucalyptus wood pulp was previously excluded from a 40% tariff list. AF&PA urged USTR to maintain consistency with that policy to protect U.S. industry and supply chain integrity.
The Section 301 probe has Brazilian timber in its crosshairs
AF&PA’s position stands in direct contrast to the American Loggers Council (ALC), which last month welcomed the investigation. Executive director Scott Dane described the forest products industry’s decline as “decimated.”
“So far, 150 primary and secondary forest products mills have closed, resulting in the loss of over 10,000 direct jobs and a comparable number of indirect jobs,” Dane said. He added that the U.S. continues to import the same forest products—lumber, pulp, and structural panels—that shuttered mills once produced. “This is primarily due to unfair trade practices and subsidies from foreign sources,” Dane said. “It’s not a lack of home-grown resources, but the importation of cheap foreign resources that often do not practice the same labour and environmental standards that the U.S. timber industry adheres to.”
Last month, Wood Central reported that Jamison Lee Greer, Trump’s trade representative, confirmed the scope of the Section 301 investigation. “After consulting with other government agencies, cleared advisers, and Congress, I have determined that Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action,” Greer said.
- To learn more about the role of organised crime in driving illegal logging in the Brazilian Amazon, click here for Wood Central’s special feature from August 2024.
