More Lumber Duties ?

Wednesday, January 24, 2007 03:59 AM

Lumber experts say that based on the present shipments of lumber into the US market , the surge mechanism may click in which would mean that lumber being shipped out of BC would be subject to a further 7.5% tax at the border. BC already is paying a 15% duty at the border for its shipments. Eastern Canada operates under a quota system, while the Maritimes are exempt from the duties.

The Minister of Foreign Affairs keeps track of the shipments and experts say if you extrapolate the figures from so far this month we will be into the 22.5% duty area.

Meantime Doug Routledge, Vice President of Northern Operations, for the Council of Forest Industries says, "We in the industry are moving about as quickly as we can in trying to put togther new markets for the wood fiber that is being left by the Beetle Infestation. The markets for energy have leveled off as they have, so has the demand for the kind of product we are hoping to produce. The alternate use for the wood fiber as it deteriorates is Bio-energy, and that is the area where we are hoping to expand our markets."

Routledge says the shelf life on the beetle wood is between 10 and 15 years"The better the producing area the faster the wood has deteriorated" he says. Acording to Rutledge, the companies are facing a problem in trying to be financially viable in that we are market dependent." As the market improves, the break even improves, if the market is low as it is now , the shorter the economic shelf life for the product becomes because it is much more difficult to take wood that is not as desirable or doesn’t meet the grade where it is not profitable to log."

US Lumber wholesalers were not prepared to comment on the volume of the wood entering the US market, and why this is happening given the reports that the US will face a major housing slow down.

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Posted on Wednesday, January 24, 2007 03:59 AM in News by 250 News

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Comments

Posted by: Gofaster on January 24 2007 4:55 AM

Yep...stick it to BC as usual
but what can we wxpect from those who have crawled into bed with Mr Bush

Posted by: wrinkledawg on January 24 2007 5:49 AM

You said it Gofaster..I think we should put a dutie on every yankee that enters the country,,,and another one when they leave. its just a thought.

Posted by: owl on January 24 2007 10:25 AM

"experts say if you extrapolate the figures from so far this month we will be into the 22.5% duty area."

Were we not better off with the countervailing duties? I thought that before the deal was signed, that was pointed out.

But Harper wanted to be seen as the man of action. He can get the deal through. Even Bush probably is smart enough to realize Harper was a patsy. Bush never had it so easy.

Posted by: owl on January 24 2007 10:28 AM

Speaking about surge mechanism. I wonder whether Iraq has an increased duty on the import of US troops inot their country (well, sort of their country) in case of a new military surge?

;-)

Posted by: trusted on January 24 2007 11:42 AM

No, owl, I beg to differ with you.
The big sell out was initiated and proposed for immediate acceptance by Emerson. Am I wrong?
Emerson was playing both ends against the middle, and even the majority of lumber companies fell for his almost threatening stance on acceptance. The companies could have rejected his play on words, but the thought of those millions coming home to roost was just too damned attractive for them to bring logic into the equation.
Greed is what settled the issue-not Harper becoming a bed partner with Bush.
What a reality check in progress.
The U S won-and the bush bunnies lost-so what's new???
Except for West Fraser-brilliant move investing that return into 13 mills in the U S. The brains of that Company is probably unequalled-even Canfor cannot compete.
So those lumber companies can just pay up and shut up.
They shouldn't play with the big boys!
Just not up to it.

Posted by: Palopu on January 24 2007 12:31 PM

I agree trusted. I am always at a loss to understand why people who have little or no knowledge of the Free Trade Agreements, Lumber Agreements, Countervail, Export tax, etc; etc; feel that they have to come to the defense of major Corporations, such as West Fraser, Canfor, etc; These are Multi Billion dollar Corporations, and have never in their history asked the common man what he thought of a given situation. If they cant stand the heat then they should get out of the kitchen.

The Canadian Lumber Companies went into this agreement with their eyes open, took the money and ran. So tough S.

If we didnt have Harper (Federally) and Campbell (Provincially) who could we blame for all our problems.

Posted by: Gofaster on January 24 2007 3:15 PM

I have gone one step futher...
I don't buy American products..unless I have absolutely no choice....for example medications only available from and American manufacturer
I have had pretty good success... the odd time I have to change the menu but on a whole I do OK... with a little planning it really hasn't increased my costs a lot either...
I have even gone to the managers of stores who advertise and item as USA/Canada and akes which it was... it really upsets them but they have to tell you...

Posted by: owl on January 24 2007 3:21 PM

I have no problem. Stuff is usually made in Asia.

Posted by: owl on January 24 2007 3:38 PM

Emmerson was the man, most certainly, who brought the deal to Harper. Harper bit for the reason I indicated.

As far as the companies being able to take care of themselves, that is an interesting one.

These days are not much different from the days of colonialism of some 500+ years ago. Big companies still deal with governments and vice versa. Do not forget, it was the forest industry in the States that lobbied Washington regarding unfair trade. It was Canadian industry against US industry. Since cross border trade was invovled, federal governments were involved.

Anyone who thinks that industry in Canada does not need the backing of the Canadian government to compete in the international marketplace has their heads in the sand. Countires like Germany do not become the single largest exporting country in the world without government support. That support is not only negotiation support at the highest levels but also hard cash subsidies which are bargained over at the table and accepted for some countries but not for others.

What I am saying is that Harper is the new kid on the block. He and his government have a steep learning curve and it shows. I really do not give a chit whether they are from the rhinocerous party or the ladies in pink party. It happens to all parties who have not been in power for some time and have a greater than normal mixture of neophytes in with a few experienced people.

As far as Emmerson goes, he might have been a great CEO for Canfor. But, let's look at the facts. Shepherd stayed on, not Emmerson. His best days are over and it shows.

Posted by: Palopu on January 25 2007 9:56 AM

Nobody doubts the necessity of the Government being involved with companies in trade negotations etc; However once the Government and Industry arrive at a decision and sign an agreement, then until they change it that is what we get. We can blame Harper for the Agreement just as some blame him for our involvement in Afghanistan, however in both cases it was done by the Liberals. Emerson was in charge of lumber agreement with the Liberals, he just carried the file to the Conservatives when he crossed the floor.

Im not a big fan of Emerson and havent been since day one, but he does have an impressive resume', and has been involved with Provincial Governments, Airport Authoritys, Federal Governments, and Private Enterprise for sometime.

Canfor only needed one CEO and Shepard came with the take-over of Slocan by Canfor. I dont beleive that Emerson had the support of Jimmy Pattison who is a major shareholder in Canfor, and that is what sealed his fate.

In any event these lumber Companies can look after themselves. It will be a frosty Friday, before I will ever shed a tear for them.

Posted by: owl on January 25 2007 2:56 PM

I am not shedding a tear for the lumber or any other companies. I am shedding a tear for the people they employ today and have to throw out tomorrow. I am shedding a tear for Canada's approach to world trade since it means the livelihood of everyone in Canada.

The interesting thing is that while the lumber dispute was on, there was also a steel dispute on. Of course, we really did not hear too much about that since we do not manufacture steel in the west. We export coal to those who do.

I do not know how that ended up, but the WTCourt ruled against the US for imposing an illegl tax and an appeals panel upheld that ruling. The EU were going to impose their own penalties on $2.2 billion in US goods. Of course we can't do that because of the auto industry in Ontario and the transportation industry in Quebec and New Brunswick.

So, Canada is hooped because it has put most of its eggs in one basket and the bunny rabbit that walks around with the basket has gotten very ill these days.