The Canada-U.S. Softwood Lumber Trade Dispute

Paper Summary:

This paper discusses the softwood lumber dispute between the U.S. and Canada which strained already hostile relations between the two neighbors. It examines the justification for the U.S. ?protective? tariffs for guarding their own lumber industry, while there are several hundred thousand Canadian forestry workers unemployed. It looks at the negotiations between the two countries with U.S. officials unwilling to compromise and evaluates whether the Canadian lumber industry survive under these restrictions imposed by its number one importer.

From the Paper:

"The duties imposed adversely affect many while benefiting few. The seven million US workers employed by the housing and forest industries are virtually unaffected by the tariffs and the consumer price will only rise due to the tariffs. While the rise of housing costs in the US may be excused as a boom in the housing market, the real reason lies within its framing of more-expensive domestic lumber. Some Canadian mills have shifted from processing softwood lumber to processing specialized products, such as pallets, posts, and rails. The lower price at which the Canadian mills can supply, in comparison to US mills, has attracted the attention of the US consumer, therefore crippling a small part of the industry the duties were designed to protect."

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