Canadian Lumber Trade

High school
Essay
Business
Pages 4 (1004 words)
Download 0
US - Canadian Lumber Trade Issue is definitely the most current and important issue not only to the Lumber Producers on both sides but also to the US consumers in terms of prices. The issue that the Canadian Lumber producers are dumping low cost lumber as compared to that of US Lumber, in US markets thus making the US Lumber producing firms to fall apart, is not a latest issue, but it is there since 1930…

Introduction

Several meetings were held between the Trade officials of both the countries in order to get to a mutual understanding, which would benefit both the parties, but until today both the parties are seeking for solution for this issue.
By May 2002, US International Trade Commission took a stand against Canadian Lumber Producers by stating that the imports from Canada threaten material injury to US industry. The Commission was convinced that Canadian softwood lumber imports are unfairly subsidized. During the same year, Bush administration slapped average tariffs of 29 percent on Canadian softwood lumber imports in a bid to protect US lumber jobs from subsidized Canadian imports. According to Mary Crawford1, the tariffs, known as countervailing duties will be 19.34 percent and the additional dumping penalty of 9.6 percent will be applied to Canadian lumber exporters for selling their softwood lumber at prices below fair market value.
The imposition of the tariffs over the Canadian softwood lumber definitely was going to protect the US lumber industry in the longer run, but the most effected ones were the US consumers, as they were going to face the hike in prices of lumber, hence overall construction cost would be high. ...
Download paper
Not exactly what you need?

Related papers

International Trade
Countries will therefore strive to maximize their output through efficiency and optimum resource allocation. Specialization is an aspect of production whereby a country concentrate in the production of products that it can produce efficiently using the available resources. Specialization create a difference in the availability of commodities in different countries and hence the need for trade. The…
Business Development in Canada
This purpose of this paper is to examine the key factor that has contributed to the shaping and development of business in Canada. Natural resources in Canada have played a significant role in the development and expansion of businesses and the overall economy of Canada. In particular, the paper focuses on the role of resources in development of business in Canada. Development of Business in…
Ethics and the Canadian Wheat Board
The Canadian Wheat Board has faced the incorporation of CSR theories since its conception on the early prairies; today the Board still operates as a dynamic organisation focused on trading high quality produce while giving farmers the best money for their efforts.…
Canadas sovereignty and its dependence on US markets
Since it is one of the longest trade disputes both governments know the issues to be discussed clearly. Negotiations between the two governments and trade unions should continue because it might result in an off court settlement.…
Canadian public economics policy
Government spending has been used to determine the size of a government because it constitutes a large part of GDP, such that increasing it will effectively increase GDP. Furthermore, because government spending increases inflation as a result of increased money supply; increases deficits by choosing not to increase revenues vis-vis spending; and increases debts by choosing to borrow funds to…
Tariffs and Free Trade
Tariffs we can say have generally fallen in the post World War 11 period as the industrialized world has moved to desirably free trade between organizations.…
Canadian Lumber Trade
Several meetings were held between the Trade officials of both the countries in order to get to a mutual understanding, which would benefit both the parties, but until today both the parties are seeking for solution for this issue.…