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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