Nova Scotia Not to Blame for U.S. Softwood Lumber Duties
This is a difficult time for the Canadian softwood lumber industry. The recent decision by the United States to increase softwood lumber duties to nearly 15 per cent is indeed a blow to Canada, and the implications are severe.
On this point I agree with William Pellerin’s opinion piece in the September 3 edition of the Globe and Mail, “Blame Nova Scotia for billions Canada will pay in softwood lumber duties.” His conclusion that Nova Scotia is to blame, however, is false and demonstrates a complete misunderstanding of the issue. Unfortunately, he is now repeating these erroneous comments in other media.
His conclusion that Nova Scotia is to blame, however, is false and demonstrates a complete misunderstanding of the issue. Nova Scotia is not responsible for the U.S. increasing Canadian softwood lumber duties.
The duty increases are directly impacted by changes in dumping and subsidy calculations for lumber production in British Columbia. These have nothing to do with Nova Scotia because Nova Scotia prices are not used by the United States as a benchmark for British Columbia lumber producers.
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Nova Scotia prices are not used by the United States as a benchmark for British Columbia lumber producers.
Nova Scotia and our forestry sector have a right to participate in these proceedings like every other province in the country. Our lumber mills operate in a market dominated by private land stumpage transactions and pay some of the highest stumpage prices within Canada as a result. Nova Scotia advocated to be exempt from U.S. duties because our stumpage market is based predominantly on harvesting from private land versus Crown land.
Nova Scotia advocated to be exempt from U.S. duties because our stumpage market is based predominantly on harvesting from private land versus Crown land.
To suggest we have some quid pro quo with the U.S. government or industry is disturbing and wrong. Every province advocated for their interests when the U.S. investigation was originally launched back in 2016. We work closely with Global Affairs Canada on the softwood lumber issue, as it represents Canada’s position on behalf of all provinces.
Renewable Energy Coordinator at Municipality of the District of Digby
5 个月Feels like Nova Scotia is being penalized for not being able to negotiate lower stumpage prices on privately held lands. The issue is a telling one. We cannot attract any forest companies because private land owners cannot agree on a fair market price. Here we go again
Canadian lumber market share in the US is down to 24 percent from about 35 percent. Challenges with management of forests over the past 3 decades led to expansion of the mountain pine beetle in the BC interior damaging large areas of forests. BC lumber capacity has declined by about 8 billion board feet annually. The US does not produce enough lumber to supply its requirements. SLA duties for Nova Scotia and the rest of Canada should be eliminated. Forest diseases are leading to more wildfires in Canadian forests, reducing Canadian lumber capacity. European producers are exporting lumber into the US with no SLA duties, while Canadian lumber producers are paying large SLA duties on all exports into the US. Demographics indicate US lumber demand will grow, requiring even more Canadian lumber, US may require 28 percent or more market share from Canadian lumber producers, if not housing inflation could increase further, causing US consumers to pay even more for housing, due to rising lumber prices impacted by SLA duties. Two great countries ???? ???? should be able to resolve this dispute ??
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5 个月Insightful
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5 个月As stated, Nova Scotia's lumber prices are not used as benchmarks for other provinces, and our mills primarily operate on private land, where we pay some of the highest stumpage rates in Canada. Given the distinct nature of our market, our advocacy during these proceedings was justified and essential. Any suggestion of a backroom deal is both unfounded and inaccurate.
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5 个月I agree