THE EXPORT PREMIUM - WHY SOME LOGS ARE WORTH MORE ABROAD

For as long as logs have been exported from the Pacific Northwest, the y seem to have been worth more offshore than in the domestic market. F ive reasons for the export premium are the inconvenience of trade, qua lity, extra ''haul and hassle,'' continuity in export arrangements, an d export embargoes. A large and increasing differential remains betwee n export and domestic prices for comparable logs in high grades. Logs of lower quality do not seem to have a dual price structure, and there appears to be a declining premium for logs overall. Year-to-year fluc tuations in the premium can be considerable, however, and trade policy changes typically affect the export premium more, proportionately, th an they affect export volumes.