A
November 25 petition by U. S. softwood lumber producers Weyerhaeuser and Potlatch,
together with the Carpenters Industrial Council, seeks imposition of
countervailing duties on Canadian softwood imported into the U. S. following
expiration of the one year standstill agreement between Canadian and U. S.
trade officials. The U. S. companies and the carpenter’s union assert that
Canadian softwoods are being sold in the U. S. below cost. Canada’s BC Lumber
Trade Council opposes the petition. Council President Susan Yukovich says, “The
claims levelled by the U. S. lumber lobby are based on unsubstantiated
arguments.”
Negotiations
between the Obama administration and Canada’s Trudeau government have failed to
produce a new bilateral trade agreement after a year of discussion. It seems
unlikely that an incoming Trump administration, with its protectionist
sentiments, would take any action to prevent softwood lumber price increases which
will follow imposition of the countervailing duties proposed by U. S. lumber
interests. Look for American housing and smaller commercial construction prices
to go up as a result, in the near future.
