Trump election casts shadow on softwood lumber trade

Donald Trump's crusade against NAFTA could embolden the U.S. Lumber Coalition to renew its battle against B.C. lumber exports

One of a series of articles on the future of the B.C. forest industry. You can follow the series on Facebook or Twitter by searching for the hashtag #BCForestFuture.

Negotiators for B.C.’s now-expired softwood lumber deal with the U.S. now know who they’re facing in an effort to find an acceptable quota for Canadian wood exports – anti-trade crusader Donald Trump.

Trump’s campaign speeches focused on the North American Free Trade Agreement (NAFTA), characterizing it as the worst trade deal the country has ever made and promising to renegotiate it. NAFTA allows a partner to withdraw with six months notice, but it does not cover Canadian lumber exports, more than half of which come from B.C.

B.C.’s government and forest industry continue to market wood products in Asia, with Forests Minister Steve Thomson leading his annual trade mission to Japan and China in late November. Asian lumber purchases peaked in 2014, briefly exceeding U.S. sales before the American housing market recovery continued and Chinese demand began to slow.

RELATED: Premier Christy Clark congratulates Trump on election win

The last Canada-U.S. agreement was signed in 2006 and its protection against trade actions expired in October. It had provisions for an export tax or a quota, and B.C. opted for the tax that kicked in depending on the selling price.

UBC forestry professor Harry Nelson says the U.S. Lumber Coalition is seeking a quota this time, to restrict supply and keep prices higher for American customers. And Canadian or B.C. government efforts to develop the industry, from technology to replanting, could also be targets of U.S. lumber interests.

“Investments in forest stewardship, competitiveness and innovation could all become targets of a future lawsuit by the U.S. Lumber Coalition, which has charged that the Canadian forestry companies have an unfair advantage over U.S. producers,” Nelson wrote in a commentary in The Globe and Mail on Nov. 9.

Prime Minister Justin Trudeau met with U.S. President Barack Obama in June, where they acknowledged there is more cross-border ownership of forest products companies and agreed in principle to a cap on Canadian exports to the U.S. Thomson says discussions are continuing, but there has been no announcement of progress since then.


Just Posted

Snow warning: Bad for the highways, great for the ski hills

Get your ski gear ready as area mountains are ready for you to enjoy all the Interior winter has to offer this season.

Columbia Shuswap Regional District staff to investigate road rescue

Two directors ask staff to have regional district fire halls provide service to speed up response

Columbia Shuswap Regional District approves cannabis business policy

Directors of the Columbia Shuswap Regional District gave unanimous approval to a… Continue reading

Shovelling begins in the Shuswap

The first big snowfall will be followed by warmer temperatures and rain

Snowfall warning issued for Eagle Pass to Rogers Pass

A winter storm is expected to roll through the area today with… Continue reading

VIDEO: Close encounter with a whale near Canada-U.S border

Ron Gillies had his camera ready when a whale appeared Dec. 7

Prosecutor signs off on former B.C. Liberal government’s quick-wins probe

David Butcher said in a statement released Monday that the RCMP recommended charges under the Elections Act

Canadian physicist who won Nobel Prize touts science for the sake of science

Donna Strickland, 59, said securing the field’s highest honour has given her a significant new platform

Cannabis store application receives approval from Summerland council

Application to Liquor and Cannabis Regulation Branch is for store in Summerfair Shopping Centre

Too many die in heavy truck crashes, B.C. auditor says

Province has no mandatory driver training for commercial vehicles

B.C. city considers scrapping funds for Christmas decorations

Victoria city coun. Ben Isitt doesn’t think the government should pay for any religious symbols

BCHL player lifts Canada West to second win at World Junior A Challenge

Chilliwack Chiefs player has a three-point performance

B.C.’s skyrocketing real estate market will ‘correct’ in 2019: analyst

Housing prices in Vancouver are set to rise just 0.6 per cent

Most Read