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.

Just Posted

Students at Creston Valley Secondary School put together an art installation of a replica residential school room. (Photo by Kelsey Yates)
Creston students create art installation of residential school room

The replica was decorated with a small bed, school uniform, and notes written with pleas for help

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Second dose vaccinations accelerating throughout region: Interior Health

To date, more than 675,000 doses have been administered throughout the region

The Food Recovery Program has pivoted to more meal production during this pandemic year. Submitted file
Kimberley Food Recovery Program producing more meals during pandemic

This past Monday, June 14, Shannon Grey-Duncan from the Kimberley Food Recovery… Continue reading

Prince Charles Secondary School
School District 8 votes in favour of name change for Secondary School in Creston

In an act of reconciliation, a new name will be chosen for Prince Charles Secondary School

Kootenay-Columbia MP Rob Morrison. Photo courtesy Conservative Party of Canada.
MP Morrison appointed to parliamentary national security committee

Kootenay-Columbia parliamentarian one of five candidates appointed to national security committee

Local environmental group Mainstreams conducting more work along the banks of Mark Creek. Paul Rodgers photos.
WATCH: Mainstreams continues riparian and aesthetic enhancement project along Mark Creek

Local environmental organization Mainstreams was back along the banks of Mark Creek… Continue reading

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

B.C. Public Safety Minister Mike Farnworth and Attorney General David Eby attend opening of the first government-run B.C. Cannabis Store, Kamloops, Oct. 19, 2018. (B.C. government)
B.C. government to allow home cannabis delivery starting July 15

Added convenience expected to persuade buyers to ‘go legal’

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

BC Green Party leader and Cowichan Valley MLA Sonia Furstenau introduced a petition to the provincial legislature on Thursday calling for the end of old-growth logging in the province. (File photo)
BC Green leader Furstenau introduces old-growth logging petition

Party calls for the end of old-growth logging as protests in Fairy Creek continue

Most Read