Canadian Lumber Trade - Essay Example

Only on StudentShare

Extract of sample
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.
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


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…
Author : shad21

Related Essays

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 case of surplus of a commodity resulting from specialization applies perfectly to Rodamia due to its mode of production. Rodamia is a vast country that specializes in production of agricultural...
4 pages (1004 words) Essay
Business Development in Canada
This essay approves that United States corporations increased ownership of manufacturing and processing plants in Canada. Foreign direct investment by American firms was concentrated in the resource sector and in particular, the paper mills, and mining companies. The intensive incursion and successive ownership of manufacturing and processing plants in Canada by American led to the emergence of mergers as a new form of business strategy. Merger of multinational firms and local firms also concentrated control and ownership of natural resources in few hands. New economic organizations and...
9 pages (2259 words) Essay
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....
6 pages (1506 words) Essay
Canada’s Sovereignty and Its Dependence on US Markets
As the discussion stresses political sovereignty means protecting the country’s political and diplomatic rights by taking appropriate decisions in the country’s best interests. The softwood lumber dispute between Canada and the US is a test to the Canadian sovereignty. From decades Canadian industries were dependent on the US market. Most of the Canada’s products were exported to the US markets. The US also depends on Canada for oil and natural gas. ...
5 pages (1255 words) Essay
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....
8 pages (2008 words) Essay
Canadian Tire
anadas largest retailer, it is asserted that about 90 percent of Canadians live within a 15-minute drive of a Canadian Tire store and that at least 40 percent of Canadians shop at Canadian Tire, which has 487 stores across the country, each owned and operated by an associate dealer. This essay therefore examines the progress that Canadian Tire since its formation. Specifically, the paper explores the company’s achievements, challenges, and weaknesses, further explaining the reason it is my favorite company....
4 pages (1004 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!