Wood Products Trade Act of 1985

Wood Products Trade Act of 1985 - Amends the Trade Act of 1974 to authorize the President to enter into trade agreements which provide for voluntary restraints on exports of wood products. Declares that such agreements should also provide for the termination of subsidies and the harmonization reduction or elimination of tariff and nontariff barriers to international trade in wood products. Directs the President, in pursuing such trade agreements, to take into account trade distortions resulting from product standards and from restrictions on the trade of unprocessed logs. Requires such agreements, for specified purposes, to be treated in the same manner as trade agreements designed to reduce nontariff trade barriers and other trade distortions.

Directs the President, after not more than 90 days of consultation with a foreign country or instrumentality, to: (1) terminate, withdraw, or suspend all or part of any trade agreement with such foreign entity with respect to any U.S. duty or other import restriction on wood products; and (2) terminate, withdraw, or suspend the U.S. obligations with respect to such duty or other import restriction. Requires that: (1) any duty or other import restriction with respect to which such an action has been taken shall remain in effect from February 26, 1985, through February 26, 1986; and (2) after February 26, 1986, any such duty shall be increased to ten percent ad valorem plus its column 1 duty rate, unless either a countervailing duty is imposed on that wood product because of a subsidy or the duty on the wood product is modified under a bill enacting a trade agreement on wood products.

Requires that any such suspension of tariff or import restrictions on wood products shall be treated as an increase or imposition of duty for purposes of the President's authority to grant new concessions as compensation to maintain the general level of reciprocal and mutually advantageous concessions.

Directs the President to consult with the Congress in carrying out this Act.

Amends the Tariff Act of 1930 to add as a definition of "subsidy" the furnishing of stumpage rights (the rights to cut or remove standing timber) on government lands by a country under a program or system in which those rights are furnished in exchange for a price less than the current price for comparable stumpage rights on government lands in the United States. Sets forth a formula for determining such stumpage rights subsidy in Canada.

Amends the Tariff Schedules of the United States (TSUS) to change the definition of certain types of plywood for purposes of the TSUS.