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Softwood Skirmish

By 250 News

Saturday, October 09, 2010 05:04 AM

Prince George, B.C.-  Call it “Softwood Lumber…the Sequel.”
 
The United States  has called for formal talks over allegations the 2006 treaty has been violated, claiming B.C. is under pricing timber from the Interior region of the province.
 
Trade Representative Ron Kirk says the decision to move to consultation is “intended to emphasize the importance of resolving this matter. As contemplated under the Softwood Lumber Agreement, we are asking to continue our engagement on this issue and ensure that the (deal) is implemented as intended.”
 
The U.S. Coalition for Fair Lumber Imports alleges there's been a big increase in the number of B.C. logs classified lower grade and eligible for the lowest stumpage rate paid by lumber companies for cutting rights. That , says the Coalition amounts to an indirect subsidy for B.C. producers, which violates the Softwood Lumber Agreement.
 
The Coalition claims that has dramatically reduced costs for lumber producers in the B.C. Interior, providing them with an indirect subsidy in violation of the lumber agreement.
 
Canada's trade minister, Peter Van Loan, says there is no justification for arbitration "The increased proportion of low-value logs in B.C.’s timber harvest is due to the unprecedented mountain pine beetle infestation. Regrettably, the United States decided to rely on unfounded allegations, which are flatly contradicted by trade and other economic data."
 
Forests and Range Minister Pat Bell echoes Van Loan’s comments “"British Columbia has always honoured and continues to honour its commitments under the 2006 Softwood Lumber Agreement. I am disappointed that the U.S. is
initiating arbitration.
 
Minister Bell goes on to say the U.S. complaint is based on the large volumes of mountain pine beetle attacked timber that have been harvested “British Columbia's auction-based pricing system ensures that the full value of timber is captured by the government.”
 
"B.C. lumber producers have suffered during the recent downturn just as much as U.S. producers” says Bell, “From 2005 to 2009, the U.S. lumber producers have increased their share of the U.S. market from 62 to 72 per cent, while during the same timeframe B.C.'s share declined from 20 to 16 per cent.”
 
Minister Bell says it would be far more productive for the U.S. lumber industry to work cooperatively with B.C. to boost demand for wood products across North America, “The continuing protectionism from U.S. lumber producers reveals the importance of developing new markets for B.C. wood products, such as we are doing in China."
 
 

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Comments

Can't be. Didn't mr. harris say that they had fixed something no one else could fix and everything was going to be good from then on.
what a bunch of cry babies those americans are...it's just cause they are having an election and the politicians gotta make it look like their actually doing something.
Just sell us to the States and everything else we have, Campbell will be happy.
Harper will apologize and pay whatever the penalty is!
Ok so they say we didn't play fair. Ok no problem, let stop sending oil, gas, electricity, All lumber and wood. See what they say then. Time to play the game they have been playing for too many years. Someone needs to grow a pair and stand up for OUR COUNTRY and PROVINCE!!!!!
From almost 2 years ago ....
http://www.vancouversun.com/life/stumpage+rates+seek+help+Ottawa+forestry+industry/1177372/story.html

It has taken this long for the situation to get to this?? Knowing the USA Americans, there was no way that they would not hang on as ankle biters with locked jaws. They saw a good opportunity once more. The question is, are they justified?

Here is a short position paper from the other side.

http://www.uslumbercoalition.org/doc/violations_summary.pdf

It would be nice to get our reaction to that.
Ah, we couldn't do THAT, Teacher. The first part of what you wrote above, that is.

It would involve looking at how money is related to international trade, when that trade isn't really a 'trade' at all. And examining THAT subject is strictly forbidden.

Even a country that's completely physically self-sufficient in all its material needs, (as the pre-WW II USA once was, and the old British Empire, too), HAS TO import some other country's 'money' under the current financial set-up.

They HAVE TO 'trade'internationally, with some other credit area. Not goods for alternate goods, but goods FOR FOREIGN 'CREDITS'.

Why else do you think the fledgling USA forced open the isolationist Japan in the mid-19th Century? It didn't need anything the Japanese had to offer, but it needed a foreign market for its increasing manufactures that COULDN'T BE, whether Americans needed them or not, all sold in America.

There are countless other examples. It is why India was the "jewel in the Crown" of the British Empire. A vast, captive, dumping ground for otherwise unsaleable British goods. A lovely excuse for the very type of financial ledgerdemain that is with us, and just as limiting to us, today.

Without the import of foreign 'money' to provide an excuse for providing more domestic 'money', no modern industrial country could SELL all its own production of consumer goods in its own domestic market at the financial 'costs' of its making, let alone adding on any profit to it. Even though all those 'costs' were distributed, once, as 'incomes'.

So we come down to where we are today. What could be done 'physically', in Canada's case with very little overall difficulty, can NEVER be done 'financially'. Not unless we want to change the 'figures' to fit the 'facts', and there's no sign at all that we're willing to do that.
the problem we face is that the Americans can never admit that someone else may just be able to do it better for less than them. What do they propose we do with all the dead trees, let them rot?
When a company that ryhmes with Can Whore is allowed to put sample logs in dry kilns prior to scaling to create more checks in the logs which downgrade the wood it screws everyone else who plays by the rules.

About 3 years ago the americans had a legitimate bitch on this but now the pine logs are in such bad shape they are all pretty much downgraded.
This government really dropped the ball on the softwood lumber agreement, our most important industry. Hopefully their candidates from the local riding's explain themselves in the next election instead of having a cake walk to Ottawa and do nothing for northern BC.
Perhaps the clients in the US of A would have preferred we send them wood which was sawn to size, shipped, and used on construction sites, and only after loads were applied to them in the field, started checking so that there is less compressive wood than required to hold up the building.

It is all a matter of interpretation of when the quality control takes place.

However, the key thing is whether reasonable people were able to have reasoanble debate about the new problem facing them and resolve it in a reasonable manner.

It seems that was not the case so far.

BTW, the BC problem is not the only issue.
Candidates in the next federal election? Well, Jay Hill does not have to explain himself at all. Who should be doing the explaining are the nominees for the Conservatives at the moment.

I doubt a single one of them understands the issues. Right now, as far as I can tell, they are all going on their their good looks.
Do we export raw logs to the Excited States?? If so, let's stop that practice and instead export them all to China. Back to you Pat.
Time to rip up nafta and use the sla as the toilet paper it is.

Throw the switch and shut off the tap.

Fortunately we can only afford to send them gordo as compensation.
When I first read the headline I thought, Aha! A two by four battle in the 'hood by drug dealers. Then I read the article. Impressions of PG are first and foremost.
If anyone on this site beleives that the Canadian Lumber Industry can survive without the American market, then you better go for a head check. The American import approx 80% of the lumber produced in Canada. More than China, Japan, and all other Countries combined.

Without the Americans to buy our products, this Country would have to lay off thousands and thousands of people.

We are actually fortunate to have such a huge Country situated next to us who will buy our products.

The Canadians are always playing hanky panky with the lumber agreements with the US,however they had better watch out, because if they really piss the Americans off we will be in serious trouble.

Dont give me the BS that we could sell our lumber to China, because firstly they do not build houses out of lumber, and secondly we are trying to expand that market but it will take years to develop. In the meantime what the Chinese purchase is D Grade lumber, which is the cheapest lumber on the market, and if they didnt buy it it would be used for wood chips.

Remember to old adage. **Dont bite the hand that feeds you**
"We are actually fortunate to have such a huge Country situated next to us who will buy our products."

Here I thought we just discovered one of the drawbacks of that.

If we did not have such a country next to us, we would not have become so lazy to produce a "monocultural" product. We would have had to find more varied uses of the raw materials to fit them to the needs of a much larger and varied market. We would then not have had a double whammy reaction of both a housing downfall as well as a general economic downturn.

As I said, we are lazy in marketing our forestry resources.
Well....I bet the good old USA doesn't import 80% of Canada's lumber now. I did a quick search and couldn't find up to date figures. Anyone have any idea?? Actually with BC raw log exports neither they nor China need much of our lumber. Ergo, the thousands and thousands that have been laid off.

This is not about Americans buying our products. It's about a group of whiny American lumbermen who want it all their way. If the US administration keeps on caving in to them I believe Canada should throw the switch and shut off the tap. Temporarily, of course. Just long enough for Aunold to break a sweat because the air condioning won't work. They need our electricity and oil more than our lumber now. Possibly the day will come when they once again covet our lumber. Someday.... maybe, down the road a bit.

Palopu likes the koolaid. The government got us a poor deal no matter how much u slurp them.
Here are some stats for the non-beleivers.

Export Lumber from BC.

To USA 63%
To Japan 12%
To China 16%
To Other 9%.

Its interesting to note that even though China surpassed Japan in 2009 for lumber exports, Canadian mills received more money from Japan than they did from China. Reason being of course is because a large portion of what China buys is low grade lumber, used for concrete forms etc. and therefore gets a low price.

The significant drop in lumber exports to the USA is because of the housing collapse in the USA, however as the housing situation gets better exports to the USA will rise and exports to China will fall. You are naturally going to sell your lumber for the highest price.

Revenue from lumber sales to the USA in the last 6 years.

2004 $5,078,942,532
2005 4,805,107,483
2006 4,322,666,733
2007 3,376,875,570
2008 2,193,889,589
2009 1,542,556,548

Its pretty obvious from the above numbers that there was a serious drop in the lumber exports to the USA.

The deal hatched by the Government Ie; Softwood Lumber Agreement was signed off by the majority of lumber companies in Canada.

I would leave the signing of contracts and the exporting of lumber to those who are involved, and who make millions of dollars in profits.



Oh, I'm a believer. The thousands and thousands of layoffs predicted have already happened. Mills closed. Raw logs exported. The sla that the government hatched with the help?? of david emerson and canfor approval SUCKS.

That is a rather serious drop in value of lumber exported. Care to share the source of your figgers?
joeboy. Just put Canadian Softwood Lumber Exports to the USA by Province and you will get the info.

This is put out by BC Stats, The website is
htp://www.bcstats.gov.bc.ca/data/bus_stat/busind/trade/SWLprov.asp