Softwood Lumber Dispute

What is softwood Lumber

Softwood lumber is much more pliable and flexible than hardwood. It comes from pine, fir, cedar, and spruce trees and it tends to absorbs and retain water easily. Make sure you use special care when using softwood since it can be easily dented or damaged.

Softwood Lumber / Market

Source - https://finance.yahoo.com/news/top-20-largest-timber-exporting-183623650.html

Key Companies:

Canfor

West Fraser

Tolko Industries

Rayonier Advanced Materials

Western Forest Products

Weyerhaeuser

Georgia-Pacific LLC

Sierra Pacific Industries

Interfor

EACOM Timber Corporation, a subsidiary of Interfor

McRae Lumber

Svenskt Tr?

Source - https://www.dhirubhai.net/pulse/softwood-lumber-market-detailed-analysis-current-is1if/

Softwood Lumber Dispute:

Canada is "extremely disappointed" in the latest finding by the Commerce Department, Ng said. "This measure is entirely unwarranted."

At the same time, she said, the federal government stands ready to negotiate a resolution to the dispute that has dogged the Canada-U.S. relationship for decades.

"We will continue to work closely with provinces, territories and industry to defend Canadian interests through all available avenues," Ng said.

"We remain ready and willing to work with the United States toward a negotiated solution that allows for a return to predictable cross-border trade in softwood lumber."

• Canada broadens pushback on 'unfair, unjust' U.S. softwood lumber duties

Under the U.S. Tariff Act, the Department of Commerce determines whether goods are being sold at less than fair value or if they're benefiting from subsidies provided by foreign governments.

In Canada, lumber-producing provinces set so-called stumpage fees for timber harvested from Crown land, a system that U.S. producers — forced to pay market rates — consider an unfair subsidy.

Source - https://www.paperadvance.com/news/industry-news/canada-challenges-u-s-decision-to-maintain-softwood-lumber-duties.html or https://www.cbc.ca/lite/story/1.7102915

United States Forestry Sector / Lobbying:

United States forestry sector lobbies the United States government very hard as part of addressing policy change - https://www.opensecrets.org/federal-lobbying/industries/summary?id=A10

What is next?

1. United States honoring the WTO rulings on softwood - https://cottagelife.com/general/federal-government-vows-to-fight-us-tariff-hike-on-canadian-softwood-lumber/
2. Managing of forest including stump fees is the crux of the softwood lumber dispute. https://thehill.com/opinion/finance/4331315-how-to-solve-the-unsolvable-softwood-lumber-dispute/
3. Forestry continues to play a key role with building construction including the cost of construction - https://www.bdcnetwork.com/blog/5-things-developers-should-know-about-mass-timber
4. Housing costs - https://www.bdcnetwork.com/blog/5-things-developers-should-know-about-mass-timber
5. Development of forestry management practices - https://www.bdcnetwork.com/blog/5-things-developers-should-know-about-mass-timber

Paul Young CPA CGA is a former IBM Customer Success Manager that has deployed over 300 data and AI solutions across industries and geographies for the past 8 years. Paul is an SME on how best to leverage macro and micro indicators as part of the integrated planning and reporting cycle.

Forestry - https://www.dhirubhai.net/pulse/forestry-sector-analysis-commentary-january-2024-paul-young-aqa8c/

Stock Market - Australia - WE February 9, 2024 - https://www.dhirubhai.net/pulse/stock-market-australia-we-february-9-2024-paul-young-wljec/

Blog – Fiscal Update -? CBO – January 2024 - https://www.dhirubhai.net/pulse/monthly-budget-update-cbo-january-2024-paul-young-u1sxc/

?

Courses - https://www.dhirubhai.net/posts/paul-young-055632b_activity-7163302861974519809-ryf3?utm_source=share&utm_medium=member_desktop

?