A resolution to the recently increased duties for BC Softwood Lumber isn’t expected soon.
Last week (August 13th), the US Department of Commerce increased the duty on lumber from eight per cent to 14.5.
“In the meantime, the mills in the Bulkley Valley that export to the US must put up deposits to get the lumber across the border, and for smaller companies, that’s tough,” said Forests Minister Bruce Ralston.
With the reduced profits, he adds it could lead to mills reducing their lumber output and potentially laying workers off.
“It is a complicated dispute, but it had a direct impact on local economies in BC and that’s why we’re fighting it,” Ralston said.
The other concern is more mills being closed across the province following Canfor’s multiple shutdowns and curtailments last year.
About $11 billion worth of softwood lumber is exported from BC annually, the majority being destined for the US.
New markets are also being opened by the province, including in Japan.
“Still, we depend on American exports, and they depend on us on the consumer side,” Ralston said.
A resolution to the recent duty hike isn’t expected until after the US election this fall, but work towards preparing for that is being urged
“Americans are always very hard ball because it’s always in their interest to continue the dispute and block Canadian lumber from coming in at competitive prices,” he said.
Ralston added the negative impacts don’t end with Canadians as he expects US lumber prices to go up.
“There will be a further review in a year by the American Department of Commerce and they may ratchet [the duty] on it up even more so we have to be on the mark to push back as hard as we can,” he said.
A potential outcome of the increased duties is the federal government is the implementation of spot tariffs like the ones in place on certain alcohol from the US.
“Those are the kind of long-term strategies that have to be put in place to get the attention of Americans,” the minister said.
“Things can be done if you push hard and you work hard, and we work together on behalf of the people and the industry.”
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