b'26American Journal ofTransportation ajot.com(TRENDScontinued fromafter the most destructive forest page 24) fire year on record, is a double US has been remarkably agree- whammy for softwood exporters able for decades, a standard toin British Columbia (BC). which few nations sharing suchAccordingtoCanadian longborderscanmatch.How- data,BCexported5.4million ever, the exception to this ame- c/m of lumber worth $1.73 bil-nable norm is softwood lumber.lion(US$1.27billion)tothe In 2006 the Canada-UnitedUSoverthefirstsixmonths States Softwood Lumber Agree- of 2024, amount to 76% of all ment (SLA) managed softwoodlumber exports.lumbertradebetweentheUSInresponsetotheKurt and Canada for nine years. TheNiquidet,Presidentofthe SLApactexpiredinOctoberBCLumberTradeCouncil 2015.SinceMay2017,Cana- (BCLTC) wrote, These duties diansoftwoodlumberexportscontinuetobeunjustifiedand totheUShavebeensubjectunfair.Commerce[DOC]has tocountervailingandanti- departedfromlong-standing dumpingduties.Inthepast,methodologies,resultingin Canadahassuccessfullychal- thehigherratesannounced lenged these actions under thetoday. These rates will hurt US disputeresolutionprovisionsconsumersbyincreasingthe oftheWorldTradeOrganiza- costoflumberandbuilding tion (WTO), the North Ameri- materials at a time when con-canFreeTradeAgreementcernsaboutaffordabilitycon-(NAFTA),andsucceedingthetinuetoimpactconsumerson Shipment of Canadian softwood lumber heading for US border by truck.Dreamstime photo. UnitedStates-MexicoCanadaboth sides of the border.(USMCA) trade agreement.Canadas Minister of Export The US government alongPromotion,InternationalTrade Canada challenges doubling of US duty ratewithdomesticwoodproduc- andEconomicDevelopment erstheUSLumberCoali- echoedNiquidetsremarks, on imported Canadian softwood lumber tionhavelongarguedthatstating,Baselessandunfair in Canada, provinces set timberUS duties on softwood lumber feesforwoodharvestedfromunjustifiablyharmconsumers By Leo Ryan, AJOT Crown land, which gives themand producers on both sides of an unfair pricing advantage overthe border. Itshere-we-go-againtimeinCanada-USStates does not need the unfairly traded Canadianthe US competitors. This in turnWhile its doubtful that Can-traderelationsonsoftwoodlumber.Andthelumber imports to supply current levels of homedistorts the US lumber market.adas displeasure with the duties Canadian government this month has filed legalconstruction.OnAugust13ththeUSwill have any impact on Wash-challenges to the decision by the Department ofCanada is the top global exporter of softwoodincreasedthedutiesonCana- ingtonpolicymakers,whoare Commerce decision on August 13 to increase thelumber - valued at C$13.7 billion in 2022, with thediansoftwoodlumberimportsfully engaged in the politics of an duty it charges on softwood lumber imports fromUS market alone accounting for about two-thirdsfrom8.05%to14.54%.Theelection-year. There is more than Canada to 14.54% from 8.05%. The duty is to beof this total. hikewasevenhigherthanthea grain of truth in the assertion applied retroactively to exports made in 2022 asFordecades,theoutstandingissuehas13.86%hiketheDepartmentthat the duties will boost forest well as to new exports of softwood lumber to therevolved around the US industry view that Cana- of Commerce (DOC) projectedproduct prices in the US. US.Especiallysharpprotestshavecomefromdian imports compete unfairly on the US marketearlier in the year. BritishColumbia,theleadingsoftwoodlumberbecausedomesticlumberproductionfrompub- This is a big blow for Can- s hIftIngt raDeproduction region of Canada. licly-owned forests is government-subsidized. It isadasforestproductexports.Therearenewpatterns Thedecisionhascoincidedwithdepressedalleged that Canadas provincial governments doForest products are a key export,emerginginthepost-COVID marketconditionsillustratedbyrecordlowsinnot sufficiently adjust the costs of timber based onand the US is the largest tradetradeinforestproducts.The lumber demand and prices which have fueled millthe competitive marketplace. partner. AccordingtoStatisticsUS is the largest producer and curtailments and permanent closures across CanadaOnSeptember9,MaryNg,MinisterofCanada data, in the first half ofamongthelargestconsumers as well as the United States. Adding to the negativeInternational TradeandExportPromotion,said2024Canadaslumberexportsof forest products. And the US landscape has been the impact of the most destruc- Canada has launched two legal challenges undertotheUSroseby3%com- as key importer and exporter of tive wildfires in Canadian forest history in 2023. theCanada-UnitedStates-MexicoAgreementparedto2023.Exportvolumeforest products is influenced by Whilewelcomingthedecision,theUS(CUSMA).OneconteststheUSanti-dumpingreached14.7millionandthegeo-political events that impact LumberCoalitionaffirmedthatwithlumberduties and the other contesting the US counter- value of these exports increasedall international trade. demand and prices at record lows and mills acrossvailing duties. She also recalled that Canada hasby 7% to $2.95 billion.(TRENDScontinued on the country struggling to keep afloat, The United(RATEcontinued on page 30) The hike in duties, comingpage 28)'