Canfor CEO Speaks Up on Softwood Issue
Prince George, B.C. – In a conference call to discuss Canfor’s first quarter results, company CEO Don Kayne called the countervailing duties levelled by the U.S. against Canadian lumber exports as “punitive and completely unwarranted”.
Canfor was hit with a rate of 20.26%. Kayne says the duties are not based on fact “But are a result of protectionist efforts by the U.S. lumber lobby aimed at artificially restricting supply for their own benefit but at the expense, ultimately, of U.S. consumers.”
Kayne says Canfor will defend itself and will work with colleagues to defend the industry “We fully expect the determination by the U.S. Department of Commerce to be overturned by independent NAFTA and WTO panels and that the duties will ultimately be rescinded and returned.”
He praised both the provincial and Federal governments for their work on this issue ” We have had excellent support and collaboration from the Canadian Federal and B.C. Provincial Governments and have every confidence they will take all the appropriate steps to successfully fight these outrageous trade actions again, as they have done previously.”
Kayne says Canfor has been preparing for possible trade issues “We have significantly diversified our markets, we’ve grown global markets in general through promotion of wood as a green building material, we’ve added 14 operations in the U.S. South representing 1.6 billion board feet or 30% of our production and made significant capital investments in our B.C. operations to ensure our global competitiveness, close to $1 billion dollars in the last 5 years.”
Way to go Canfor and West Fraser. Nice positioning. took guts but today is the payday.
B C Government doesn’t have the authority to bargain on softwood, that is a federal mandate.
A billion dollars in capital investments over five years sounds pretty good if you say it fast, however when you consider that Canfor owns 17 sawmills, pulp mills, pellet plants etc in BC then the figure is not so great.
“…at the expense, ultimately, of US consumers.”
And the real estate commission on the sale of the average new home is how much compared to the cost of ALL the lumber that went into it? Time for a different negotiating line on our side, not much mileage left in that one.
Ever consider that Trump, like former Premier Gordon Campbell, both being long involved in property development, looks at anything that runs up the price of housing, (and everything else), as a sign of prosperity?
If the politician can make you think you’re going to be paying more tomorrow than what you’d be paying for the same thing today, you’re going to rush out and buy today. Even if you have to go into hock past the skin of you eyelids to do it. Pure inflation, which the central bankers will soon move in ways that are virtually guaranteed to make everything still more expensive later trying to reign in.
Pretty good trick, if you’re a politician. The fools you’re trying to fool can’t discern the difference between inflation and prosperity, and they’ll send you back for another term for hornswoggling them.
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