Governor Gregoire Applauds The Chinese Government For Lifting Duty On Washington Products

For Immediate Release: January 13, 2006

OLYMPIA� Governor Chris Gregoire today welcomed the decision by the Chinese government to repeal the duty order on kraft linerboard from the United States. The decision follows U.S. and Chinese negotiations on the duty, which had seriously limited Washington exports of the product to China.

�We�re proud of our growing relationship with China and look forward to ever-expanding trade and investment connections. It is critical for us to work through issues such as these. We are building bonds beyond simple transactions,� said Governor Gregoire.

�The governor raised this issue with State Councilor Tang Jiaxuan in Beijing� said Juli Wilkerson, Director of the Department of Community, Trade and Economic Development, who accompanied Governor Gregoire to China last fall. �We also urged the termination of the duty in letters to the Chinese Ambassador to the United States and the Minister of Commerce. This decision will benefit our economy.�

U.S. producers submitted a request to the Chinese Ministry of Commerce last November asking for reconsideration. U.S. producers maintained that products produced in this country differed significantly from those made in China.

"Weyerhaeuser welcomes this decision," said Steven R. Rogel, Weyerhaeuser chairman, president and chief executive officer. "China is our largest linerboard export market, and the termination of the duty will significantly help Weyerhaeuser meet the needs of its Chinese customers."

Washington State and China share a rich history of business, educational and cultural exchange. In 2003, China was Washington�s third largest export market � exporting more than $2.3 billion in goods and services, more than any other U.S. state except California and Texas.

Washington companies positively affected by the repeal include Weyerhaeuser, Longview Fibre, Port Townsend Paper and Tacoma Kraft Paper.

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