It appears as though Canada and the US are preparing for a trade war over softwood lumber exports. The US and Canada have been long at loggerheads on the Canadian softwood exports to the US and now that the one-year “standstill period” tacked onto the 2006 Canada-US Softwood Lumber Agreement has expired, the chances for negotiating a timely agreement are dwindling.
This opens the door to what could be years of costly litigation, mill closures and job losses in Canada and higher lumber prices in the United States.
Even though some key Canadian mills have diversified exports, primarily to Asia, the US continues to remain, as key market. The imposition of US duties would impact softwood timber exports to the US, thereby leading to Canadian mill shutdowns and job losses. In BC alone, five mills could be impacted a well as other mills across Canada. read more >>
