Employees work in the lumber yard at Ledwidge Lumber Co. in Halifax on May 10, 2017. THE CANADIAN PRESS/Darren Calabrese

Employees work in the lumber yard at Ledwidge Lumber Co. in Halifax on May 10, 2017. THE CANADIAN PRESS/Darren Calabrese

Canada’s softwood lumber exports to U.S. down

Softwood exports to U.S. down but it’s not causing big financial pinch

Canada’s softwood lumber exports to the U.S. have fallen since the Americans imposed new duties earlier this year, but thanks to near-record wood prices the industry isn’t suffering much from the political trade fight.

As the clock inches towards the end of 2017, it seems unlikely a new softwood agreement will be inked between Canada and the U.S. this year, but even the industry association representing most softwood producers in Canada isn’t that concerned about it.

Joel Neuheimer, vice-president of international trade and transportation for the Forest Products Association of Canada, said the higher price of wood and the insatiable demand from U.S. builders, is helping keep the duties from pushing companies to lay off staff, cut production or even close down.

“If we were not seeing the same kind of demand and the same kind of high prices we’re seeing then we might be in an entirely different type of situation,” said Neuheimer.

Trade data from the United States Department of Agriculture shows the amount of Canadian softwood imported was down eight per cent for first nine months of 2017, compared with the same period in 2016.

However the value of those imports went up very slightly — 0.15 per cent — because even though less wood was shipped, each piece of lumber was worth more.

Trade data from Statistics Canada shows British Columbia producers are bearing the brunt of the drop, with softwood exports to the U.S. down about 33 per cent. The value of those exports was down 28 per cent.

Related: Cannings calls for support for softwood workers

British Columbia’s wild fires last summer had a big impact on the province’s forestry industry, with softwood exports in July and August only about half what they were a year earlier.

Related: Lumber prices see ‘big jump’ after wildfires in B.C.

Quebec exports to the U.S. actually went up three per cent and Ontario exports are up 11 per cent so far this year.

Quebec and Ontario rely almost exclusively on U.S. markets for their wood, with 99 per cent of Ontario shipments of softwood and 98 per cent of Quebec’s going to the United States.

In 2016, about 81 per cent of B.C. softwood was exported to the United States, while in 2017 that fell to 63 per cent. B.C. producers saw their exports to the rest of the world jump 67 per cent this year.

Between 2001 and 2006, when the last softwood lumber dispute took place, it’s believed about 15,000 jobs disappeared in the softwood industry.

This year Neuheimer said there haven’t been any reported layoffs as a result of the dispute.

Canada and the U.S. continue to negotiate a new softwood trade agreement, but in the meantime the U.S. Lumber Coalition complaint stands that Canada unfairly subsidizes its producers with low stumpage fees for harvesting trees on government land and that Canadian producers are selling wood into the U.S. at lower prices than they sell it at home.

The complaints led to the current duties imposed by the U.S. Department of Commerce last spring and verified in November. Canadian producers paid about $500 million in deposits for the duties thus far, with more to come in 2018 if there is no settlement.

Canada is challenging the duties under both the North American Free Trade Agreement and at the World Trade Organization. The NAFTA dispute panel has to make a ruling by next fall. The WTO process could take years.

Neuheimer said there is a desire to reach an agreement since the industry’s position is not guaranteed, because prices could change. That lack of certainty means the industry is not investing in itself much while it awaits an outcome to the dispute.

However he acknowledged the pressure that existed to settle the last time is much lower when the producers are not feeling the financial hit as deeply.

“It does make it easier to perhaps be more patient,” he said.

Mia Rabson, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Seniors in the Interior Health region can book their COVID-19 vaccinations starting Monday, March 8, 2021 at 7 a.m. (File photo)
Seniors in Interior Heath region can book COVID-19 shots starting Monday

Starting March 8 the vaccination call centre will be open 7 a.m. to 7 p.m. daily

Lorne Doerkson is the Liberal MLA for the Cariboo-Chilcotin. (Black Press Media file photos)
MLA’s CORNER: Premier Horgan needs to work harder

There are lots of people out there who are in desperate need of assistance

The first Chimney Creek Roadhouse, constructed in 1864. (Photo courtesy of the B.C. Provincial Archives)
HAPHAZARD HISTORY: The Isnardy family of Williams Lake

Amadee Isnardy was born in 1840 near Nice, France

Jim Hilton pens a column on forestry each week for the Quesnel Observer.
FOREST INK: Ecological economics not a popular topic for most people

The following is a review of the no (or slow) growth concept

Do you have a letter? Email us at editor@wltribune.com
LETTER: BC Liberals left ICBC a mess: Farnworth

Our BC NDP government has worked tirelessly to fix the mess that was left behind

The James C Richardson Pipe Band marches in a Remembrance Day parade on Nov. 11, 2019 in Chilliwack. Wednesday, March 10 is International Bagpipe Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of March 7 to 13

International Bagpipe Day, Wash Your Nose Day and Kidney Day are all coming up this week

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

Donald Alan Sweet was once an all star CFL kicker who played for the Montreal Alouettes and Montreal Concordes over a 13-year career. Photo courtesy of Mission RCMP.
Ex-B.C. teacher who was CFL kicker charged with assault, sexual crimes against former students

Donald Sweet taught in Mission School District for 10 years, investigators seek further witnesses

During a press event on March 6, Const. Alex Berube, media relations officer for the West Shore RCMP, addressed a deadly shooting that occurred in Metchosin the night before. (Devon Bidal/News Staff)
VIDEO: One man shot dead on Vancouver Island in ‘targeted incident’

Highway 14 reopens following multi-hour closure for investigation

Personal protective equipment is seen in the COVID-19 intensive care unit at St. Paul’s hospital in downtown Vancouver. THE CANADIAN PRESS/Jonathan Hayward
$16.9 million invested to improve worker safety, strengthen B.C.’s food supply chain

Money to be used for social distancing, personal protective equipment, cleaning, and air circulation

Most Read