BC Lumber Producers Welcome Government of Canada Support for Forestry Workers and Communities

VANCOUVER, B.C. – The BC Lumber Trade Council (BCLTC) welcomes the federal government announcement today of measures to support forestry workers and communities impacted by the duties imposed by the U.S. on softwood lumber.

“BC lumber producers welcome the announcement today of measures to support forestry workers and communities during this trade dispute, as well as promoting forest sector diversification, overseas marketing and innovation,” said Susan Yurkovich, President of the BC Lumber Trade Council.

“This package is a prudent response that can provide both immediate support for workers and communities if required, along with enabling additional investments in longer-term opportunities for the sector,” added Yurkovich. “We particularly appreciate the investment in expanding markets for Canada’s high-quality forest products overseas which will help to further diversify our markets.”

 “We know that the federal government, including the Prime Minister, Minister Jim Carr, Minister Chrystia Freeland and Minister François-Philippe Champagne, continues to make softwood lumber and the forest sector a top priority,” said Yurkovich. “They, along with industry and provincial governments, are doing everything possible to defend our interests on softwood lumber.”

“The BC Lumber Trade Council continues to believe that reaching a new agreement is in the best interests of producers and consumers on both sides of the border,” added Yurkovich.  “However, in the absence of an agreement, we will continue to work alongside the provincial and federal governments to vigorously defend our industry.  With government and industry standing together, we know we will be successful as we have in the past.”

B.C. is the largest producer of softwood lumber and represents about 50 per cent of Canadian exports to the U.S. The B.C. forest industry is the cornerstone of the provincial economy, and supports approximately 145,000 direct and indirect jobs in the province. The BC Lumber Trade Council is the voice on trade matters for companies in British Columbia representing the majority of B.C. lumber production.

Contact:

Mina Laudan
media@bclumbertrade.com
778.990.0701

B.C. Lumber Producers to Vigorously Defend Against U.S. Duties on Softwood Lumber

Lumber tariffs will mean American job losses and higher American consumer costs

VANCOUVER, BC – Today, the U.S. Department of Commerce imposed punitive preliminary countervailing duty rates on Canadian softwood lumber in response to a petition filed by the protectionist lumber lobby in United States. In this preliminary determination, countervailing duty rates imposed are as follows: Canfor 20.26%, JD Irving 3.02%, Resolute 12.82%, Tolko 19.5%, West Fraser 24.12%, and 19.88% for all other British Columbian and Canadian producers. 

“These duties are unwarranted, and this determination is completely without merit,” said Susan Yurkovich, President of the BC Lumber Trade Council.  “The allegations made by the U.S. lumber lobby are the same arguments they made in prior rounds of litigation, all of which were rejected and overturned by independent NAFTA panels. This new trade action is driven by the same protectionist lumber lobby in the U.S. whose sole purpose is to create artificial supply constraints on lumber and drive prices up for their benefit, at the expense of American consumers.”

The U.S. Department of Commerce [DOC] also found “critical circumstances” which means duties will be retroactive 90 days for all companies other than the mandatory respondents. “The finding of critical circumstances in this case represents an unprecedented departure from the DOC’s typical approach and produces an entirely arbitrary result,” added Yurkovich.

“American demand for lumber exceeds what the U.S. lumber industry currently produces,” stated Yurkovich. “And, with housing and construction starts on the rise, demand for lumber is expected to continue to grow in the years ahead. The fact is, Canadian lumber imports don’t pose a threat to the U.S. lumber industry. There is enough North American demand to grow the U.S. industry while also allowing Canada to supply its U.S. customers as we have been doing for decades.”

Constraining Canadian lumber imports by applying punitive duties creates price volatility in the lumber market. These unwarranted duties are being reflected in higher lumber prices, driving up costs for American consumers, especially for families who want to build, buy or renovate a home in the U.S.  Concern about the impact of duties on American families and homebuilders is already being expressed by the U.S. National Association of Home Builders (NAHB). Their analysis shows that even with a 15 percent tariff, there would be a loss of 4,600 American jobs and $265 million in lost wages and salaries in the U.S. residential construction and renovation industry alone.

“Canada and the U.S. enjoy one of the most productive trading relationships in the world, and the North American lumber market has always been served by both American and Canadian producers,” stated Yurkovich.  “BC Lumber Trade Council continues to believe that reaching a new agreement is in the best interests of producers and consumers on both sides of the border and we will continue to work closely with our provincial and federal governments to support efforts to reach a new agreement. However, with this U.S. trade action, we will also continue to vigorously defend our industry and our workers against these unwarranted duties and expect to be successful as we have been in the past.”

B.C. is the largest Canadian exporter of softwood lumber to the U.S. The B.C. forest industry is a major contributor to the provincial economy and supports approximately 145,000 direct and indirect jobs in the province. The BC Lumber Trade Council is the voice on trade matters for companies in British Columbia representing the majority of B.C. lumber production.

MEDIA AVAILABILITY AND TELECONFERENCE

BC Lumber Trade Council will hold an in-person media availability and teleconference.

DATE:                         Tuesday, April 25, 2017

TIME:                          10:30am (Pacific Standard Time)

LOCATION:                 Boardroom at the BC Council of Forest Industries

700 West Pender Street, Suite 1501

CALL-IN DETAILS:        1-888-504-7961

                                    Passcode: 7096350

Media Contact:

Mina Laudan

media@bclumbertrade.com

778.990.0701

@BCLumberTrade