So far, only preliminary conversations have been held about the agreement s long-term fate. Under the agreement, up to 14.7 billion board feet of Canadian softwood lumber can enter the U.S. duty free from British Columbia, Alberta, Ontario and Quebec. Supporters of the deal, including some U.S. lumber producers and the Coalition for Fair Lumber Imports, say the agreement helps them stay competitive with their Canadian counterparts. ACAH spokesperson Susan Petniunas said Canadian imports are important because environmental restrictions have reduced the supply of domestic lumber in the past four to five years. In 1999, lumber from the four provinces covered in the agreement accounts for about 28 percent of U.S. lumber consumption.
Quality is also an issue.
According to the National Association of Home Builders, barriers to imports puts an added burden on U.S. lumber supplies, forcing builders to increasingly use immature or substandard lumber that tends to warp and bend. Free flow of lumber would result in a wider variety of lumber products and lower prices for consumers, the group says. Scott Shotwell, executive director of the Coalition for Fair Lumber Imports, said his organization supports free trade, as long as there s a level playing field. But he said the playing field with Canada is anything but level when it comes to importing lumber. According to CFLI, the Canadian government owns 95 percent of Canadian timber and sells it at a rate that is 25 percent to 33 percent below U.S. market-based prices.