Lumber industry, Maine company speak out against Canadian protections
The global pandemic may be fueling the decades-old dispute between the U.S. and Canada over imports of Canadian lumber — an issue that has long provoked strong reactions from Maine forest industry companies.
The spread of COVID-19 has caused demand for many commodities including lumber to plummet, and forced the temporary closure of more than three dozen sawmills across Canada. In response, the Canadian government is reportedly considering new measures to prop up the industry, especially in the production of softwoods such as pine and spruce.
The U.S. Lumber Coalition on Friday criticized the assistance, saying it aggravated unfair subsidies given to producers in the country’s northern neighbor.
“The announcements of additional aid to Canadian producers are of particular concern in the already difficult market environment for U.S. producers and workers brought about by the COVID-19 pandemic,” the Washington, D.C.-based industry group said in a statement.
The statement also included a comment by Jason Brochu, co-president of Pleasant River Lumber Co., in Dover-Foxcroft: “The last thing the U.S. industry, its workers, and forestry dependent communities need at this difficult time is even more heavily subsidized and unfairly traded Canadian lumber imports further disrupting our markets.”
The U.S. and Canada, which historically have enjoyed one of the friendliest trade relationships in the world, have tangled over softwood since the 1980s. While there have been agreements about how much Canadian lumber can be imported into the U.S. and at what price, the deals have been short-lived.
In 2017, the U.S Commerce Department imposed tariffs as high as 24% on softwood imports from Canada, claiming the country in effect creates subsidies that are unfair to American competitors.
In Canada, most softwood forests are owned by provincial governments, which set prices for harvesting on the land. In Maine and other parts of the U.S., most softwood is cut on privately owned property.
A Canadian industry group estimates the U.S. has collected $3.6 billion from the recent tariffs, and is appealing for help from Ottawa as the pandemic worsens the economic outlook.
“We just need some help to keep our heads above water and keep as many people working as possible over the next few months,” said Derek Nighbor, president-CEO of the Forest Products Association of Canada, in April 17 testimony to a Canadian Parliament committee. “The rest of 2020 is going to be about survival.”
But the American coalition is fighting back.
"The U.S. lumber industry will continue to push for the full enforcement of the U.S. trade laws against Canada's unfair trade practices so that the U.S. lumber industry, and the 350,000 men and women who support it can continue to compete on a level playing field in a fair-trade environment," said Brochu.
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