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

Free workshop on how to make a snake move

Wildlife management free workshop May 7 9 a.m. to 12 p.m. at Cawston Hall

Work continues to deal with flooding

Increased efforts to mitigate flooding at Sportsmens Bowl and downstream

One year until Penticton Regional Hospital Tower opens

Construction on track at the Penticton Regional Hospital

Reel Reviews: Parlour games or video games

We say, “Rampage is silly fun and Truth or Dare is just silly”

Look back to simpler summers

Rotary honourees reminisce about South Okanagan summers

Talent show benefits African orphanage

Summerland Secondary School students organized fundraiser

Renewed plea for answers in 40-year-old B.C. cold case

The family of Lawrence Wellington Allard is hoping a private reward will get them some closure

UPDATED: Arrest made after van hits pedestrians in Toronto

Police are not saying what is the extent of injuries yet

Deadline approaches for regional business excellence awards

Awards in June will celebrate top businesses in the Thompson Okanagan region

B.C. farmland values grew at slower rate in 2017: report

Vancouver Island saw the highest growth in the province

MMIW drone team fundraising for summer searches

Organizers expect the searches to expand this summer

Turbulent times for outgoing B.C. Lieutenant Governor

Judith Guichon ends term today, returns to Nicola Valley ranch

NHL playoffs weekly roundup

Maple Leafs look to stay alive tonight as they face elimination against Boston on home ice

Most Read