What is the Canadian softwood lumber import dispute?

The heart of the dispute is the claim that the Canadian lumber industry is unfairly subsidized by federal and provincial governments, as most timber in Canada is owned by the provincial governments.

WHO issues an export permit for softwood lumber in Canada?

The North America Trade Policy Bureau (NATPB) authorizes, under the discretion of the Minister of International Trade, the import and export of goods restricted by quotas or tariffs.

Where is softwood lumber found in Canada?

Softwood, derived from coniferous trees, supplies most of the manufacturers in these industries and is cut primarily in British Columbia. The remainder of the industry is supplied by hardwood (from deciduous trees, e.g., birch, maple, oak) found mainly in southern Ontario and Québec and the Maritimes.

How important is the softwood lumber industry to Canada economy?

Canadian softwood lumber consists of spruce, pine and fir used primarily for framing in construction. It is a key component of Canada’s forest industry and supports predominantly rural and Indigenous communities while generating $22 billion in GDP.

Why is lumber so expensive now?

Wood products prices typically fluctuate more than most goods, because homebuilding can move up or down much faster than sawmill capacity can. Lumber and plywood prices are so high now because of the short-run dynamics of demand and supply. Wood demand shot up in the summer of pandemic.

What kind of wood does Canada export?

softwood lumber
Canada is one of the world’s largest producers and exporters of softwood lumber. Softwood lumber accounts for 20% of the value of Canada’s forest product exports. The largest export market for Canada is the U.S., where softwood lumber is used to build houses.

Why is lumber so expensive in Canada?

A huge demand for new construction, a housing shortage and a short-fall in lumber supply are all reasons behind the high price, Lee said. “They’ve been growing at an astronomical rate and they really are changing weekly,” he said. “It went up a lot in the early fall because of the lumber industry having to catch up …

Why is lumber so expensive Canada?

Will lumber prices come down in 2022?

Lumber and plywood prices have jumped through the roof in the U.S. Building materials prices will retreat in 2022, returning to pre-pandemic levels by 2023. Wood products prices typically fluctuate more than most goods, because homebuilding can move up or down much faster than sawmill capacity can.

When was the softwood lumber trade agreement signed?

Most recently, Canada and the United States signed the 2006 Softwood Lumber Agreement (SLA) on September 12, 2006. This Agreement put the 2001-2006 trade dispute to an end.

When does the Canadian softwood lumber SLA expire?

The United States government and industry agreed to not undertake new countervailing or anti-dumping duty investigations against Canadian softwood lumber products for one year following the expiry of the SLA. This one year period expired on October 12, 2016.

Is the United States importing softwood lumber from Canada?

Despite the U.S. market’s dependence on imported lumber, over the past 25 years, the United States lumber industry has frequently sought U.S. government restrictions on Canadian softwood lumber imports through the application of U.S. countervailing and antidumping duty laws.

When did Canada request WTO consultation on softwood lumber?

Canada has filed appeals of both the AD and CVD investigations. November 28, 2017, the Government of Canada formally requested World Trade Organization (WTO) consultations on U.S. duties on Canadian softwood lumber.