By Molly Priddy
The U.S. timber industry scored a win on April 9 in the decades-long battle with Canada over softwood lumber, after the World Trade Organization ruled in its favor.
On April 9, the WTO decided that the United States Department of Commerce had done the correct calculations when it determined anti-dumping duties on Canadian softwood lumber.
“It’s a victory for the United States and the forest products industry,” said Chuck Roady, general manager of F.H. Stoltze Land and Lumber, as well as the president of the Montana Wood Products Association. “It was great to see an excellent decision on our part, because the U.S. rarely prevails in the WTO.”
Softwood lumber has been the subject of an enduring trade dispute between the two countries, and the most recent Softwood Lumber Agreement (SLA) lapsed in 2016 after 10 years.
The roots of the dispute come down to two different forms of government having two different methods of lumber harvest. Canada’s provincial government owns the majority of timberlands that provide trees to Canadian producers, charging an administered fee. In the U.S., the timberlands are typically privately owned, and the market determines the price of those logs through public sales.
“Both systems work until you sell the lumber in the United States,” Roady said.
In November 2017, the U.S. Commerce Department determined that Canadian exporters had sold lumber in the U.S. for 3.2 percent to 8.9 percent under fair market value, and that Canada is subsidizing softwood lumber producers at rates of 3.34 percent to 18.19 percent. The department determined that Canadian lumber producers should then pay a combined tariff of 20.83 percent.
In its mixed ruling on April 9, the WTO determined that the U.S. use of “zeroing” to calculate the anti-dumping duties is not prohibited. In the past, the organization had ruled against the methodology.
The ruling also determined that the U.S. had violated international trade rules when it calculated the tariffs on softwood lumber imports, which Canada applauded.
By Michael Gorman
Lands and Forestry Minister Iain Rankin is promising “significant” changes to the province’s forestry sector as the government embraces more sustainable management. But critics say the government’s plan lacks important detail.
Lands and Forestry Minister Iain Rankin is promising a more sustainable forestry sector in Nova Scotia and less clear cutting as the province implements recommendations from the Lahey review of forestry practices, although how big that reduction will be remains to be seen.
The government’s long-awaited response to the report was released Monday and received positive reactions from critics and industry, though some said the province’s plan was short on detail.
“Forestry is a long-standing economic driver in Nova Scotia and it’s important we get it right,” Rankin said in a news release.
“We accept Prof. Lahey’s findings and will immediately begin work to put in place the tools to achieve ecological forestry in Nova Scotia. This will result in significant changes to the way forests will be managed, including less clear cutting on Crown land.”
Bill Lahey, the president of University of King’s College, presented his final report in August.
The predominant theme of the report was reducing clear cutting to 20 to 25 per cent of all harvesting on Crown land from 65 per cent.
The report recommended using a “triad model” that would see some areas used for intensive commercial forestry, some protected from all commercial activity, and some designated for less intensive forestry with little to no clear cutting.
A forester from Bancroft, Ont., says the province could be doing much more to deal with an insidious disease that’s killing beech trees across Ontario.
Svetlana Zeran called in to CBC’s Ontario Today Monday to say beech bark disease is a major concern on the nearly 400,000 hectares of forest her company manages.
“We have been dealing with beech bark disease for about a decade,” Zeran said. “Now that it is here on the [Canadian] Shield, it is moving very rapidly and we are seeing the disease come in and infect the trees and they are dead within two to five years.”
The disease begins when an insect bores holes in the bark, allowing a red fungus to invade the tree and slowly weaken it from the inside out.
The State of Canada’s Forests Annual Report provides a national snap shot of Canada’s forests and forest industry. We’ve been tracking our journey toward sustainable forest management for 28 years. This year’s report focuses on the theme “faces of forestry” and features the innovative ways people work and learn in forests.
BY EILLIE ANZILOTTI
A new tower will have greenery lining the balconies and roofs to clean up the air and provide a new environment for pollinators and humans alike.
Toronto has long been serious about its urban canopy. The Ontario city is already home to around 10 million trees, which cover around 26% of the city. The current mayor, John Tory, wants to grow that to 40%.
Brisbin Brook Beynon, a local architecture firm, is already giving the city a leg up on that goal, albeit in an unconventional way: a 27-story residential building that will be covered with around 450 trees, growing on its balconies and roofs. This “vertical forest,” as BBB terms it, takes inspiration from the Bosco Verticale–residential towers in Milan that went up in 2014 with as many as 11,000 plants lining the sides. Since then, copycat buildings have been built in cities like Nanjing and in Taiwan–designed to combat pollution and prove that green space does not need to be limited to the ground. This latest iteration could open as early as later next year.
For Brian Brisbin, principal at BBB, bringing the vertical forest concept to Toronto aligned perfectly with the mayor’s goals for increasing tree coverage. And when he began researching the concept by studying the Bosco Verticale, he realized that all of the technology that enabled the Milanese building to function originated in Canada and North America. “That felt fairly profound,” Brisbin says.
And it also, Brisbin says, made bringing the concept to Toronto feel much more feasible. “We have a lot of depth of specialty in this area in Toronto, with horticultural and agricultural universities and research facilities,” he says, “and we’ve brought a lot of together to take a very science-based approach to developing this project.”
State and federal entomologists believed the destructive pest would show up near the New Hampshire border, not hundreds of miles to the north.
By Bob Weber
A massive and uncontrollable buildup of mountain pine beetles in Jasper National Park is starting to explode into commercially valuable forests along its boundaries.
Foresters along the park’s edge have seen a tenfold increase in beetle infestation in just months, and some scientists wonder if Parks Canada could have done more to control the invasion a few years ago.
“They decided to consider the pine beetle a ‘native disturbance agent,”‘ said Allan Carroll, who has studied the beetles since the late 1990s and directs the University of British Columbia’s Forest Science program. “In other words, Jasper was not intending to do much about it.”
No end to pine beetle battle in Alberta, experts say
In an emailed statement, Parks Canada said it has had a beetle management plan for the park since 2015 that includes prescribed burns and tree removal.
Too little, too late, said Carroll.
“Just that hesitation intrinsic to producing a management plan precluded any effective outcomes.”
By Ana Swanson and Damian Paletta
The Trump administration announced on Monday it is planning to impose a roughly 20 percent tariff on softwood lumber imported from Canada, in what may be the biggest trade dispute between the U.S. and Canada in over a decade.
The Obama administration began the review of trade in softwood lumber last year out of concern that Canada was subsidizing its wood industry in a way that hurt U.S. rivals. The decision to impose what are known as “countervailing duties” in retaliation for Canada’s wood subsidies, which will be announced Tuesday, is subject to a final review by the International Trade Commission, an independent federal agency that advises the government on trade policy.
The decision, however, allows U.S. Customs and Border Protection to begin collecting the funds from Canadian importers immediately. Five Canadian companies were a part of the investigation, and the United States will seek to collect money from four of them retroactively for actions taken in the past 90 days, Ross said.
Ross said this could amount to $1 billion in new tariffs, as well as $250 million in retroactive collections. All other Canadian softwood lumber companies will face the same tariff of 19.88 percent going forward.
Softwood lumber is a major export of Canada, which sold $5.8 billion in lumber to the United States last year, giving it about 31.5 percent of the U.S. market. It’s the fourth largest export from Canada to the United States after oil, gas and cars.
By Nelson Bennett
The B.C. government announced $150 million in spending Friday February 17 to “treat” forests to reduce wildfire hazards, rehabilitate forests damaged by fire and disease and increase B.C.’s carbon sink.
While that treatment will include tree planting, it will also include tree cutting.
The money will go to the Forest Enhancement Society of B.C., which was created last year with $85 million.
To date, $5.6 million has been awarded to various projects, most of them aimed at addressing forest fire hazards and cleaning up the still-standing dead wood left from the Mountain pine beetle infestation.
The funding announced Friday is in addition to the $85 million in funding provided last year. The new funding is to be added in the 2016-2017 provincial budget, which comes down on February 21.
The funds will be managed by the Forest Enhancement Society. Some of the funding will go towards tree-planting, which Premier Christy Clark described as a significant climate change initiative, since young forests absorb considerably more carbon dioxide than mature forests.
Canada’s forest sector is vital to a strong Canadian economy. Enhanced collaboration between federal and provincial governments will help to keep our forest sector, and the workers and communities that depend on it, strong and resilient.
Today, Canada’s Minister of Natural Resources, the Honourable Jim Carr, announced the creation of the Federal–Provincial Task Force on Softwood Lumber, which will share information and analysis to understand potential impacts and assess how to address the needs of affected workers and communities. Minister Carr will chair the domestic task force, while Canada’s Minister of Foreign Affairs, the Honourable Chrystia Freeland, leads softwood engagement with the United States.
There has been ongoing engagement with the provinces, territories and industry over the past two years as the Government of Canada has sought to negotiate a new deal with the U.S. on softwood lumber. This is the next step in our strategic approach to this issue, which strengthens our ongoing efforts on a priority file for the Government. Canada believes that a negotiated agreement that brings predictability and stability to industry on both sides of the border is the best possible outcome. The Government will continue to work closely with provinces, territories and the softwood lumber industry to vigorously defend the interests of the middle-class Canadians who depend on the industry. This work will continue outside of the task force.
The new Federal–Provincial Task Force on Softwood Lumber will assess current federal and provincial programming and ensure coordination of government initiatives to promote innovation, market diversification and transformation of the forest sector.
The forest sector is an important part of Canada’s economy. It directly employs more than 200,000 people across Canada. Softwood lumber exports were valued at $8.6 billion in 2015 — close to 70 percent of which was exported to the U.S.