The announcement was made just hours before the Softwood Lumber Agreement (SLA) expired over the weekend, sending fear waves throughout the lumber-crippled region but especially up Interstate 5 to the Canadian border. The SLA caps the amount of duty-free lumber Canada can export into the United States. While a temporary extension is expected, the long-term possibilities of higher U.S. duties on Canada lumber have sparked counter moves by Canadian officials to the World Trade Organization.

Georgia-Pacific has operated the Bellingham pulp mill since 1963. Washington State has lost approximately 5,000 timber jobs in the past five years. While laid-off Georgia-Pacific workers will be given 60 days' pay, few are expected to take jobs at other Georgia-Pacific plants. In fact, the company has been weighing the idea of closing a nearby tissue paper plant that employs about 300 workers.