Economic Impacts of the Canadian Softwood Lumber Dispute on U.S. Industries

Hearing Before the Subcommittee on Trade, Tourism, and Economic Developme

Publisher: Not Avail

Written in English
Published: Pages: 53 Downloads: 864
Share This
The Physical Object
FormatHardcover
Number of Pages53
ID Numbers
Open LibraryOL10119316M
ISBN 10016076422X
ISBN 109780160764226

  Softwood Lumber Dispute. Softwood Lumber Dispute first arose in with a complaint by the US lumber industry that low Canadian stumpage rates constituted an unfair advantage. In Canada, provinces own most of the forest resource and administer the rates whereas in the US rates are set at an auction.   Canada's softwood lumber industry is struggling as it faces down two of the biggest challenges facing the country — trade disputes and climate change.   Softwood Lumber Dispute and US Market Update. The US application of duties on Canadian lumber imports continues a long-standing pattern of US protectionist action against Canadian lumber producers. We disagree with the inclusion of specialty lumber products, particularly WRC and Yellow Cedar products, in this commodity lumber focused dispute.   WASHINGTON, D.C. — The federal government says American duties on Canadian softwood lumber exports continue to be "unfair" and "unjustified," even if they have been reduced. An administrative review by the U.S. Department of Commerce imposes countervailing duties of nearly nine per cent on certain Canadian exporters, down from just over 20 per cent.

  Canadian Forest Industries Contractor Survey for Shows Improvements but Headwinds Remain. Novem Timber Compared to the initial, , Canadian Forest Industries Contractor Survey and the subsequent B.C. provincial governments Logging Contractor Sustainability Review, which outlined proposals to improve relationships between the contractors and .   The announcement April 24 of a 20% import tax on Canadian softwood lumber ended months of speculation as to how the U.S. would respond to the expiration of the Softwood Lumber Agreement in October.   Currently, the tariffs to export softwood lumber into the U.S. from Canada are 20%, making the cost of exporting the lumber more than its actual value. So, while coastal mills rely on the sale of softwood, it is no longer profitable to produce, thus resulting in the closures of dozens of mills.   Shares of Canadian lumber companies surged Tuesday after the U.S. administration’s tariffs on softwood lumber turned out to be less severe than some analysts had predicted.

The softwood lumber industry is an important sector in the Canadian economy, supporting thousands of jobs in communities across Canada and creating many positive spin-off effects in related industries and services. Canada's modern, efficient, environmentally sustainable lumber companies have the potential to serve markets at home and around the world.   Softwood lumber is pictured at Tolko Industries in Heffley Creek, B.C., Sunday, April, 1, Prime Minister Justin Trudeau is vowing to keep up the fight against the never-ending effort in . The U.S. will impose further punitive tariffs on imports of softwood lumber from Canada, escalating a longstanding trade dispute that’s already led to higher timber prices.   In the last major round of softwood tariffs in the early s the companies got back about 80 per cent of duties, but the dispute took five years to resolve, said Mr. Sustar.

Economic Impacts of the Canadian Softwood Lumber Dispute on U.S. Industries Download PDF EPUB FB2

For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: Phone: toll free () –; DC area () – Fax: () – Mail: Stop SSOP, Washington, DC – 27– PDF S. HRG. – ECONOMIC IMPACTS OF THE CANADIAN SOFTWOOD LUMBER DISPUTE ON U.S.

INDUSTRIES. Economic Impacts of the Canadian Softwood Lumber Dispute on U.S. Industries: Hearing Before the Subcommittee on Trade, Tourism, and Economic Development of the Committee on Commerce, Science, and Transportation, United States Senate, One Hundred Ninth Congress, Second Session, FebruVolume 4 - Ebook written by United States.

Economic impacts of the Canadian softwood lumber dispute on U.S. industries: hearing before the Subcommittee on Trade, Tourism, and Economic Development of the Committee on Commerce, Science, and Transportation, United States Senate, One Hundred Ninth Congress, second session, Febru   The softwood lumber industry is a vital part of the U.S.

economy. There are thousands of sawmills throughout the United States, the majority of which are small, local mills. Inthe last full year of data analyzed during the investigation, the U.S.

softwood lumber industry employed more t workers in more than 30 states and. Most previous studies of the softwood lumber dispute focused on the obvious gainers or losers: the U.S. and Canadian producers, and final U.S. consumers (see, e.g., Li and Zhang, ; Zhang and. The long-running Canada-U.S.

dispute over softwood lumber--a dispute that first arose in has taken another turn. Ottawa and Washington have been arguing about the. The Canada–United States softwood lumber dispute is one of the most significant and enduring trade disputes in modern history.

The dispute has had its biggest effect on British Columbia, the major Canadian exporter of softwood lumber to the United States. The heart of the dispute is the claim that the Canadian lumber industry is unfairly subsidized by the federal and provincial governments.

Canada harvests softwood timber from public lands, and provincial governments determine the price. The U.S. logs softwood from mostly private lands, where prices are tied to the market.

The current tariffs are meant to protect the U.S. lumber industry, but as is the case with most protectionist policies, they’ve impacted other economic sectors. The softwood lumber trade dispute between Canada and the U.S.

has been going on for decades. It continues to challenge social and economic growth in many smaller Canadian. The U.S. Department of Commerce levied countervailing duties on Canadian softwood lumber imports, arguing Canada’s lumber industry is unfairly subsidized by the Canadian government, as most of Canada’s lumber comes from publicly-owned forests, as opposed to the predominately private operations in the US.

A settlement of the last round of U.S. trade cases against Canadian softwood lumber was reached infour years after antidumping and countervailing duties were first imposed and litigation on.

The federal government says American duties on Canadian softwood lumber exports continue to be “unfair” and “unjustified,” even if they have been reduced.

An administrative review by the U.S. Department of Commerce imposes countervailing duties of nearly nine per cent on certain Canadian exporters, down from just over 20 per cent. The Canada–U.S. softwood lumber dispute is one of the largest and most enduring trade disputes between both nations.

This conflict arose in and its effects are still seen today. British Columbia, the major Canadian exporter of softwood lumber to the United States, was most affected, reporting losses of 9, direct and indirect jobs between and Washington, DC - The Senate Committee on Commerce, Science, and Transportation's Subcommittee on Trade, Tourism, and Economic Development has scheduled a hearing on Canadian Softwood Lumber for Tuesday, Februat p.m.

in room of the Dirksen Building. The United States has maintained that Canadian softwood lumber is artificially cheap because government ownership of timberlands in Canada effectively subsidizes timber harvesting.

This recent WTO ruling concerns the propriety of a U.S. Department of Commerce (USDOC) finding that Canada subsidized its softwood lumber industry. The two countries have since experienced 5 rounds of trade dispute.

The stake is high as U.S.$6 to 7 billion worth of Canadian softwood lumber goes to the U.S. annually. The current tariff revenue alone, imposed by the U.S. in May at percent, is worth billions of dollar each year. Some insiders call the dispute a “softwood lumber. The United States International Trade Commission is an independent, nonpartisan, quasi-judicial federal agency that fulfills a range of trade-related mandates.

We provide high-quality, leading-edge analysis of international trade issues to the President and the Congress. The Commission is a highly regarded forum for the adjudication of intellectual property and trade disputes. A new analysis by NAHB shows that more than 8, full-time jobs will be lost this year as the result of the decision by the U.S.

Department of Commerce to impose a % duty on Canadian softwood lumber exports to the United States. That’s in stark contrast to comments made by Commerce Secretary Wibur Ross that the new duties will have little effect on the cost of new homes.

1. Introduction. Bilateral trade in softwood lumber is the subject of a long standing and ongoing dispute between Canada and the United States.

The modern version of the dispute started in when a group of U.S. softwood lumber producers alleged that Canadian lumber was subsidized though low stumpage fees under Canadian provincial stumpage systems and when the U.S.

The Canada-U.S. Softwood Lumber Agreement (SLA) was the latest measure to restrict Canadian exports of softwood lumber to the United States.

Rather than a countervail duty or export tax, SLA employed a quota that provides a large windfall (quota) rent to Canadian lumber producers in addition to extra quasi rents to U.S.

producers, all at the. Impact of U.S.-Canada Softwood Lumber Trade Dispute on Forest Products Companies: A Stock Market Perspective INTRODUCTION The softwood lumber trade dispute between the United States and Canada is the longest and largest trade dispute between the two countries (Cashore ).

The modern version of the dispute started. U.S. Reduction of Duties on Canadian Lumber a Good First Step, but Softwood Lumber Dispute Must End, Says USW Union Read full article NovemAM 2 min read. According to the Bureau of Labor Statistics, inhousing and related industries that used softwood lumber employed nearly million American workers and outnumbered U.S.

lumber-producing. [viii] Because of this, the import tariff will have a far greater impact on the Canadian economy than that of the United States, though negatively affecting both. Trump’s accusations follow after his Commerce Department found that Canada has been improperly subsidizing the sale of softwood lumber.

The U.S. is pushing to scrap a dispute-resolution system for the kind of countervailing and anti-dumping duties it slapped on Canadian lumber, a system whose rulings have generally favoured Canada.

Cornerstone Research was retained in the fourth round of the Canada–U.S. softwood lumber dispute. Cornerstone Research worked with Professor Edward Leamer of the University of California, Los Angeles, to address the economic consequences of Canadian log export restrictions. Both the U.S. and Canadian softwood lumber industries are largely driven by the U.S.

housing market in general and the new construction or remodeling market specifically. In the early to mids, the U.S. and Canadian softwood lumber industries enjoyed a period of prosperity as the residential real estate market boomed. Softwood lumber has been, and continues to be, the most contentious trade issue dividing the United States and Canada.

This article examines the economic issues surrounding the dispute and considers possible resolutions to it. Softwood lumber is pictured at Tolko Industries in Heffley Creek, B.C., Sunday, April, 1, The U.S.

trade representative is taking issue with the latest decision from the World Trade. Canada’s forest industry sustains hundreds of thousands of good, middle-class jobs in communities across our country. Many families depend on the industry’s continued success and our government continues to fight vigorously to defend the interests of Canadian softwood lumber.

The Canada-US softwood lumber dispute has been one of the longest and most significant trade disputes between the two countries in modern l to the dispute is not only competition between Canadian and US softwood lumber companies, but also conflict over basic forestry management styles.

This article discusses the North American softwood lumber industry .U.S. Imposes 20% Tariff On Canadian Softwood Lumber the deep-rooted dispute over lumber pricing between the two countries has led to once-a-decade trade skirmishes over the .A document from the United States that is labelled as a "notification of an appeal" in the DS softwood lumber case has been circulated at the WTO.

In that document, the United States does not list any specific points of appeal, and says: At this time, no division of the Appellate Body can be established to hear this appeal in accordance with DSU Article