The U.S. Department of Commerce has authorized Customs and Border Protection (CBP) to collect duties on Canadian softwood lumber imports, escalating a decades-long trade dispute.
Kurt Niquidet, president of the BC Lumber Trade Council (BCLTC), released a statement today criticizing the decision as placing undue strain on forestry-dependent regions in Canada, particularly British Columbia, while together acknowledging rising construction costs faced by American manufacturers. The current duty rates range from 7.73% to 13.26% depending on the producer,as determined in the most recent administrative review finalized on January 5,2024.
The BCLTC asserts that resolving the long-standing conflict over Canadian softwood lumber is a critical economic priority for both Canada and the United States. The dispute centers on allegations that the Canadian government unfairly subsidizes its lumber industry through provincial timber pricing policies.
“Absent a negotiated solution,the BCLTC will continue to work closely with the Government of Canada and industry partners to vigorously defend Canadian interests through all available legal avenues,including utilizing dispute resolution mechanisms under the United States-Mexico-canada Agreement (USMCA),” the BCLTC declaration stated.The USMCA’s Chapter 19 provides a binational panel review process for anti-dumping and countervailing duty cases.
Provincial Calls for Action
the British Columbia Forest Industries Council (BCFIC) is urging the provincial government to implement measures to bolster the industry, specifically focusing on streamlining permitting processes, increasing the volume of provincial timber sales, and eliminating bureaucratic delays within government departments. The BCFIC estimates that current administrative burdens add approximately 15% to the cost of lumber production in British Columbia.
“With proactive government policies, British Columbia can demonstrate its commitment to fostering an investment-friendly climate for both primary and secondary forestry product manufacturers, ensuring a reliable supply of wood products for British Columbia, Canada, and international markets,” said BCFIC President Kim Haakstad in a press release. The BCFIC represents over 60 forest companies operating in British Columbia.
Former Bank of Canada Governor Mark Carney, currently Vice Chair of Brookfield Asset Management and the UK’s Financial Services Envoy for COP28, visited British Columbia this week and announced a commitment of $700 million in loan guarantees for the forestry sector and a further $500 million in long-term funding to support diversification of export markets and product advancement. The loan guarantees will be administered through the Canada Infrastructure Bank.
