WASHINGTON — A group of U.S. senators has launched a bi-partisan resolution aimed at restoring free lumber trade between the United States and Canada, the group announced Friday.

The resolution issued Thursday by 10 American senators urges President George W. Bush to continue pursuing discussions with the Canadian government to "promote open trade between the United States and Canada on softwood lumber, free of trade restraints that harm consumers."

The U.S. Department of Commerce imposed 27 per cent countervail and antidumping duties last May after the International Trade Commission found that there was a potential for a threat to U.S. lumber producers from Canadian lumber imports.

There are groups on either side of the issue in the U.S. Lumber producers say Canadian lumber imports were hurting their business while home builders complain that the duties on the Canadian lumber are making it more expensive to build homes.

But the senators behind the resolution noted that the ITC also concluded there was no evidence that Canadian lumber imports had harmed the U.S. industry at that time.

"It's time for our trade policy to reflect fairness to all of the stakeholders, including consumers, in discussions about trade in lumber," said Sen. Don Nickles, lead Senate sponsor of the resolution who wants "all affected parties" included in discussions.

Talks aimed at reaching a negotiated settlement of the issue recently broke down when the two sides could not agree on the specifics of a new interim export tax to replace the current duties.

Under one scenario, the export tax would be collected in Canada and go to provincial governments. The end result of an interim tax, the senators claim, would be the same as the current duties, and would "result in American consumers paying higher costs for housing and all kinds of wood products."

The duties are harming U.S. consumers, according to Susan Petniunas, a spokeswoman for the American Consumers for Affordable Homes, an alliance of U.S. consumer groups, trade organizations, and companies representing more than 95 per cent of U.S. softwood lumber consumption.

"Tariffs imposed last May on finished lumber for framing homes and remodelling, may increase the average cost of a new home by as much as $1,000 US," she said. "Based on information from the U.S. Census Bureau, that additional $1,000 prevents as many as 300,000 families from qualifying for home mortgages."

The senators argue that there are not enough trees available to produce framing lumber for home building in the United States, making Canadian lumber imports "absolutely vital" for the construction of affordable new homes, and to make improvements on existing homes in America.

The United States relies on Canada and other sources for about 37 per cent of its lumber needs, the senators say.