Trump election casts shadow on softwood lumber trade

Donald Trump's crusade against NAFTA could embolden the U.S. Lumber Coalition to renew its battle against B.C. lumber exports

One of a series of articles on the future of the B.C. forest industry. You can follow the series on Facebook or Twitter by searching for the hashtag #BCForestFuture.

Negotiators for B.C.’s now-expired softwood lumber deal with the U.S. now know who they’re facing in an effort to find an acceptable quota for Canadian wood exports – anti-trade crusader Donald Trump.

Trump’s campaign speeches focused on the North American Free Trade Agreement (NAFTA), characterizing it as the worst trade deal the country has ever made and promising to renegotiate it. NAFTA allows a partner to withdraw with six months notice, but it does not cover Canadian lumber exports, more than half of which come from B.C.

B.C.’s government and forest industry continue to market wood products in Asia, with Forests Minister Steve Thomson leading his annual trade mission to Japan and China in late November. Asian lumber purchases peaked in 2014, briefly exceeding U.S. sales before the American housing market recovery continued and Chinese demand began to slow.

RELATED: Premier Christy Clark congratulates Trump on election win

The last Canada-U.S. agreement was signed in 2006 and its protection against trade actions expired in October. It had provisions for an export tax or a quota, and B.C. opted for the tax that kicked in depending on the selling price.

UBC forestry professor Harry Nelson says the U.S. Lumber Coalition is seeking a quota this time, to restrict supply and keep prices higher for American customers. And Canadian or B.C. government efforts to develop the industry, from technology to replanting, could also be targets of U.S. lumber interests.

“Investments in forest stewardship, competitiveness and innovation could all become targets of a future lawsuit by the U.S. Lumber Coalition, which has charged that the Canadian forestry companies have an unfair advantage over U.S. producers,” Nelson wrote in a commentary in The Globe and Mail on Nov. 9.

Prime Minister Justin Trudeau met with U.S. President Barack Obama in June, where they acknowledged there is more cross-border ownership of forest products companies and agreed in principle to a cap on Canadian exports to the U.S. Thomson says discussions are continuing, but there has been no announcement of progress since then.

Just Posted

CRD commission votes against alternate Malahat route through watershed

Commission voted unanimously after several speakers at meeting

Geography among factors behind Saanich’s place on worst intersection list

Site of McKenzie Interchange Project ranks as worst intersection on Vancouver Island

Victoria Police looking for rightful owner of abandoned toolbox

VicPD found a toolbox full of tools on the side of a downtown Victoria street

Victoria parking fees bring in more than $17 million every year

Parking fees make up seven per cent of the city’s annual revenue

Okanagan man cashes in $500,000 Daily Grand lotto ticket

Penticton resident Harald Naegel won using his regular five numbers

Wife remembers B.C. man killed in possible case of mistaken identity

Rex Gill was in Kamloops working to support his family after oilfield job dried up

Early morning shooting in Courtenay

Reporter at taped-off scene outside apartment complex

One dead, two seriously injured in Hwy 4 crash west of Port Alberni

A man has died following a single-vehicle collision west of Port Alberni… Continue reading

New report calls for regulated heroin sales to curb B.C.’s overdose problem

B.C. Centre on Substance Use points to organized crime and money-laundering as contributing factors

Millennial men least likely to have a family doctor: Statistics Canada

Report found more women have primary care physicians, compared with men

POLL: Will you be wearing pink to take a stand against bullying

Schools and workplaces across Greater Victoria and around the province will be… Continue reading

70% of Canadians agree with mandatory vaccines for children: poll

The debate for pro and anti vaccinations has heated up after a measles outbreak in Vancouver

Most Read