British Columbia lumber interests are raising a hue and cry. Broadly speaking, they are responding to the U.S. Commerce Department’s announcement of yet another increase in Canada’s softwood lumber anti-dumping duties, which have now climbed to a staggering 20.56 percent. This decision makes the preliminary duty of 20.07 percent issued in March a distant memory, raising that rate to over 88 percent. This represents another very concerning blow to the provincial forestry industry that is still reeling from uncertainty related to trade disputes with the United States.
Under the new anti-dumping rate, that would represent a huge increase. It has increased from the old duty of 7.66 percent, which was valid for three years. On top of these anti-dumping duties, Canada will have to deal with countervailing duties established at 6.74 percent. This one-two punch of tariffs would further complicate a perfect storm of challenges facing BC’s forest industry. It will affect workers and communities across the entire region.
Political Responses and Team Canada Approach
Newly-elected British Columbia Premier David Eby has led the charge on raising the alarm on this long-simmering softwood lumber dispute with other provincial leaders. Collectively, they are looking at a Team Canada approach to address this growing crisis. This joint approach aligns action across the provinces. Collectively, they push to ensure that farmers are treated fairly in trade negotiations and continue to seek resolution to the decades-old conflict.
One of former deputy minister to Premier Eby, Don Wright, has been named as a strategic adviser to the file on softwood lumber. He’s been a leading champion for this plan. His role will be key in ensuring that all arms of government respond and work to minimize the negative impacts from the heightened duties.
“These unjustified and punitive trade actions continue to harm workers, families, and communities across British Columbia and Canada — and have gone unresolved for far too long,” – B.C. Lumber Trade Council
Calls for Action from Industry Leaders
The British Columbia Lumber Trade Council has been urging the Canadian government to intervene. They seek action on softwood dispute resolution as the top trade priority. The Council stresses that reducing these increasing liabilities is critical for the long-term viability of the forest products industry.
B.C. Minister of Forests Ravi Parmar expressed his determination to fight against these challenges, stating, “We’re going to fight for our workers, our communities and the future of this sector.” He emphasized that the province needs to take bold actions to bring life back into its forest sector.
Parmar reminded that British Columbia can still demonstrate its commitment to restoring a thriving, sustainable forest sector by… By reigniting timber sales, expediting permits, and clearing up regulatory confusion, the province can go a long way. Either measure would signal a strong commitment to resiliency in the face of growing outside pressures.
Ongoing Trade Tensions
The softwood lumber industry has historically been the source of many disputes between Canada and the United States. Trade disputes across this area have gone on for years. Prime Minister Mark Carney acknowledged that any future trade agreement with the U.S. may include quotas on softwood lumber, further complicating relations.
The recent spike in duties provides additional fresh obstacles for British Columbia’s forest sector to face. This sector has been reeling for years from uncertainty. These growing inequitable and discriminatory burdens are having an enduring effect. The impacts are especially acute on local economies and communities that rely on this critical industry.
