Canadian Lumber Trade

High school
Pages 4 (1004 words)
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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.


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. ...
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