Softwood dispute spells trouble again for Canada as U.S. holds upper hand

By Brent Jang
Globe and Mail
December 28, 2024
Category: Business & Politics
Region: Canada, Canada West

…Washington argues stumpage fees are too low and give Canadian loggers a competitive advantage over U.S. producers, which harvest timber largely from private lands and bid against each other for the privilege. The U.S. Department of Commerce is expected to release its next preliminary duty rates on lumber in early May, or 90 days later than originally planned. Its sixth administrative review is based on lumber markets in 2023, when prices were low. Analysts say U.S. duty rates imposed on Canadian softwood could double in 2025 and reach nearly 30 per cent. …U.S.-headquartered lumber producers and timberland owners who complained about Canadian softwood ended up receiving 10 per cent of the US$5-billion in softwood duties paid in the previous round of the dispute, from 2001 to 2006. Canadian companies recouped 80 per cent of the funds while 9 per cent went to “meritorious initiatives” in the U.S., with the remaining 1 per cent allocated to promoting lumber in both countries. Vancouver-based forestry analyst Russ Taylor said, it’s unclear how much Canada will recover in U.S. duties already paid since 2017. [A Globe and Mail subscription is required to read this article in full]

Additional coverage in the Globe and Mail by Wendy Cox (also for G&M subscribers only): New year, same lumber dispute

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