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Can CCA treated Southern Pine be produced for export markets?

Yes, but only if it's intended for the same end-uses allowed by the EPA in the U.S. Regardless of the lumber's destination, U.S. treaters are prohibited from producing CCA treated lumber for uses excluded from the CCA registration. Click here to view U.S. EPA guidance on export and importation of CCA preservative treated wood.

Can anything be done to make special provisions for CCA treated lumber destined for export
markets?

No. The deadline for petitioning for changes to the CCA label was in May 2002. The EPA is not accepting any modifications.

Yes, the chemical can and will continue to be exported to treaters in foreign countries. Likewise, the chemical can be manufactured in foreign countries.

Yes, but the regulations still apply regarding end-use. Imported CCA treated lumber can only be used in the specified industrial applications.

As far as we understand it, EPA regulations on CCA also apply to Puerto Rico. Lumber treated with CCA in Puerto Rico as well as CCA treated lumber shipped to Puerto Rico fall under the same rules as domestic U.S. markets.

Yes, albeit piecemeal. Some treaters in Honduras and South America are taking steps towards copper based alternatives. Treating industries and governments in South America are cognizant of the issues surrounding CCA in the U.S., although there is no government mandate for its phase-out.

Will CCA treated lumber produced in foreign markets threaten exports of Southern Pine
treated with alternative chemicals?

South American and Honduran softwood lumber is already cost competitive against Southern Pine. However, that they can continue to use CCA will most likely not give them an added cost advantage. There are several reasons why:

(1) Importing CCA is costly -- Import duties and freight significantly raise the cost of CCA in foreign countries. For example, Brazil's import duty on CCA is around 35%, and duties are reported to be cost prohibitive in Chile and Honduras. The added cost of importing CCA largely erases its cost advantage over alternatives, which will be used in the U.S.

(2) Foreign treaters do not benefit from volume discounts - South American and Honduran treaters are typically small-scale operations, which do not get the same volume discounts on preservative chemicals that larger-scale treaters in the U.S. would. Further, due to their small-scale production capacity, it is doubtful that they can quickly take over export markets.

(3) CCA will likely become more expensive because its cost will probably rise when it becomes a niche product. Due to its limited acceptance in the U.S. beginning Jan. 1, 2004, production economies of scale for CCA will no longer exist. Thus, CCA exported to foreign treaters will likely carry a higher cost.

SPC is explaining the transition to new preservatives to key importers/specifiers by way of seminars and trade shows throughout the Caribbean. SPC has also developed two four-page newsletters explaining the transition, which it will mail directly to key buyers in the Caribbean. SPC member treaters are encouraged to help spread the word to their customers.

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