Trump administration launches punitive tariffs on Canadian lumber

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.

Source: ‘Another bad act on the part of the Canadians’: Trump administration launches punitive tariffs on Canadian lumber – The Washington Post, 2017-04-25

B.C. government commits $150 million to forest rehab

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.

Source: B.C. government commits $150 million to forest rehab | Forestry & Fisheries | Business in Vancouver, 2017-02-17

Government of Canada Announces Task Force on Softwood Lumber

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.

Source: Government of Canada Announces Task Force on Softwood Lumber  – Canada.ca, 2017-02-22

Resolute CEO confident he can convince U.S. on softwood lumber dispute

By ROSS MAROWITS
The head of Eastern Canada’s largest lumber producer said he is confident he can demonstrate to American authorities this month that the region deserves free and unencumbered access to the U.S. market.

The forestry sectors of Ontario and Quebec are modelled after the market-based systems in the U.S., and that should convince the U.S. Commerce Department that the region doesn’t engage in the unfair trade of softwood lumber, Resolute Forest Products Inc. CEO Richard Garneau said.

“So based on this, I think that we deserve the right to have access in Central Canada – in Quebec and Ontario – to the U.S. market,” he said in an interview after Resolute released its fourth-quarter and 2016 results.

The Montreal-based company was recently selected by the U.S. Commerce Department – along with B.C. companies West Fraser Timber Co. Ltd., Canfor Corp. and Tolko Industries – to provide details on how they operate as part of its investigation into alleged unfair trade.

The producers are required to respond to a questionnaire by the end of the month. A U.S. auditor will then visit the four companies for follow-up.

Source: Resolute CEO confident he can convince U.S. on softwood lumber dispute – The Globe and Mail, 2017-02-02

Forest technology building better renewable resources

Contact Jennifer Boon, Communications Manager, Sectors
Genome BC
Spruce trees are Canada’s most significant forest resource because they grow in almost every region across the country and are the largest species by the number. Spruce trees also produce high quality wood and fibre that is widely used in the industry. With roughly 400 million seedlings planted per year, spruce are the most reforested trees in Canada. Climate change and unpredictable forest product markets require innovative new tools and technologies for tree breeding programs to deliver reliable spruce stock for future seed and seedling production.

A $10.5-million research project, Spruce-Up: Advanced spruce genomics for productive and resilient forests (Spruce-Up) is estimated to more than double the net economic output value of spruce forests, increasing the value of new trees and reducing losses due to environmental disturbances. This investment, made in part by Genome BC, is being led by Dr. Joerg Bohlmann at the University of British Columbia (UBC) and Dr. Jean Bousquet from l’Université Laval. The team will accelerate the development and deployment of genomics-improved spruce seedlings that could be more resistant to insects and drought, has enhanced nutrient use efficiency and results in improved wood quality and productivity.

Source: Forest technology building better renewable resources- MarketWired, 2017-01-24

Ducks Unlimited Canada and forestry leaders launch innovative collaboration on boreal forest wetland conservation

Wetlands and waterfowl in Canada’s boreal forest will be the beneficiaries of a new program launched by Ducks Unlimited Canada (DUC) and forestry sector leaders. The partnership is a visionary approach to sharing knowledge and resources to advance sustainable forest management and wetland stewardship in the boreal forest, an area that offers one of the greatest conservation opportunities in the world.

Under the ‘Forest Management and Wetland Stewardship Initiative’, the partners will work collaboratively on priority projects that integrate wetland and waterfowl conservation into ongoing forest management planning and field operations. The coalition will establish wetland conservation guiding principles and best management practices. These will support companies in achieving their forest management objectives and help them meet the criteria for forest certification programs.

Source: Ducks Unlimited Canada and forestry leaders launch innovative collaboration on boreal forest wetland conservation — Ducks Unlimited Canada2017-01-12

U.S. ITC Rules Material Injury on Canadian Lumber Imports


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The U.S. International Trade Commission has ruled there is a reasonable indication that softwood lumber imports from Canada materially injure the U.S. industry. How significant is this ruling to the trade dispute between the two countries? Joshua Zaret, senior industry analyst for packaging, paper and paper products, Bloomberg Intelligence speaks on The Daily Brief. (Source: Bloomberg)

Source: U.S. ITC Rules Material Injury on Canadian Lumber Imports – Bloomberg, 2017-01-09

Pine Beetle Strategy In Banff National Park Can Do More Harm Than Good

By NPT Staff
One strategy to control the spread of mountain pine beetles in Banff National Park sometimes does the opposite, a study by a University of British Columbia researcher shows.

While pheromone baiting followed by tree removal — purposefully attracting the pests to a tree, which is then cut down in winter when the larvae are trapped inside — can be successful where there is a dense population of beetles, the strategy can increase the number of beetles in some areas of the Canadian Rockies, according to mathematical modeling led by Rebecca Tyson, an associate professor of mathematics at UBC’s Okanagan campus.

“What our study found is that where the beetle population is low, the pheromone is actually attracting more beetles and thus helping the beetle population increase,” said Ms. Tyson, whose research was recently published in ScienceDirect.

Source: Pine Beetle Strategy In Banff National Park Can Do More Harm Than Good – National Parks Traveler

Two ways to settle the latest Canada-U.S. softwood lumber dispute

The standstill agreement on softwood lumber trade expired recently, leaving Canadians holding their breath for the U.S. Lumber Coalition to launch legal proceedings.

In the calm before the storm of the next Canada-U.S. softwood lumber dispute, speculation about how the issue will unfold has crystallized around two options: a tax or a quota. The differences may appear merely technical, but they would mean vastly different things economically.

While a quota would impose a cap on exports to the United States, a tax would allow the level of exports to fluctuate with U.S. consumers’ willingness to pay for Canadian lumber. In other words, as U.S. lumber prices increase, Canadian lumber would still be able to enter the U.S. market to meet demand.

Source: Two ways to settle the latest Canada-U.S. softwood lumber dispute – The Globe and Mail