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 a trade agreement with Canada which provides for the reduction of imports of Canadian softwood lumber by means of voluntary restraints or elimination of the stumpage subsidy provided by Canadian Government entities. Permits such agreement to provide for the reduction or elimination of tariff and nontariff barriers to international trade in wood products.

Requires the President, if such a trade agreement has not been entered into with Canada before February 26, 1986, to terminate: (1) any portion of a trade agreement that was entered into under this Act or specified sections of the Trade Expansion Act of 1962 or the Tariff Act of 1930; and (2) any U.S. obligations under any other agreement with respect to the duty imposed on softwood lumber by reason of such trade agreements.

Requires the duty on softwood lumber, if any portion of such trade agreements is so terminated, to be the sum of: (1) the column one rate of duty on softwood lumber; plus (2) the equilibrium rate of duty for such softwood lumber. Requires that any countervailing or antidumping duty imposed on such softwood lumber shall be in addition to such special duty.

Defines "equilibrium rate of duty" on Canadian softwood lumber to be the ad valorem rate of duty equal to the excess of: (1) ten percent; over (2) the percentage of countervailing duty applicable to such softwood lumber. Terminates the equilibrium rate of duty after February 26, 1989.

Requires the President to consult with specified congressional committees and with specified private sector advisory committees in carrying out this Act.

Includes stumpage rights within the definition of subsidy for purposes of countervailing and antidumping duties. Defines stumpage rights. Requires any countervailing duty imposed on softwood lumber after February 26, 1986, but before February 26, 1989, to be in the form of an ad valorem duty.