Canadians want the cap and the tariffs removed. The U.S. industry wants a new agreement that taxes all Canadian softwood lumber based on its value. The industry also wants the U.S. government to pressure its northern neighbor to end what it says are subsidies that keep Canadian lumber prices artificially low. Our mantra is if they would just sell their timber competitively, we go away, Wood said. Softwood lumber comes from cone-bearing trees such as pines and is a favorite of the construction industry.
Canadian producers say U.S. companies want to limit imported lumber to boost their own profits.
They argue free trade is fair trade. We understand that, former Ontario Premier Robert Rae said. But no amount of rhetoric is going to make the United States self-sufficient in lumber. The two countries have struggled with lumber tariffs since the 1840s. In the last two decades, the issue has heated up when trade agreements expire.