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.
Global softwood lumber trade increased 12 percent year-over-year to reach a new record-high of 121 million m3 in 2016, per estimates by WRI. Since the global financial recession in 2009, there has been a steady climb in international trade of lumber, with shipments the past seven years having increased as much as 66 percent.
Since the global financial recession in 2009, there has been a steady climb in international trade of lumber, with shipments the past seven years having increased as much as 66 percent. While it is no surprise that China is a major driver for the dramatic rise in lumber shipments worldwide the past seven years, it is interesting to note that the US has actually increased softwood lumber imports more than China.
by Brian Donnelly, Senior News Reporter
A SCOTS research team has warned a worldwide rubber shortage is looming as demand grows, costs rise and an adequate man-made substitute is yet to be found.
The natural commodity used throughout modern life is dwindling to such an extent that Royal Botanic Garden Edinburgh researchers said if farmers in Africa and Asia continue to fell trees at the current rate more than half of the world’s main source of the critical plant will be gone in 30 years.
It means an impending rubber shortage that would affect production of everything from wellington boots to aviation tyres and scientists are calling for better management methods and policies in major producing countries including China, Vietnam, Thailand and Laos.
By Gillian Flaccus and Phuong Lee / The Associated Press
RIDDLE — John Redfield watches with pride as his son moves a laser-guided precision saw the size of a semi-truck wheel into place over a massive panel of wood.
Redfield’s fingers are scarred from a lifetime of cutting wood and now, after decades of decline in the logging business, he has new hope that his son, too, can make a career shaping the timber felled in Southern Oregon’s forests.
That’s because Redfield and his son work at D.R. Johnson Lumber Co., one of two U.S. timber mills making a new wood product that’s the buzz of the construction industry. It’s called cross-laminated timber, or CLT, and it’s made like it sounds: rafts of 2-by-4 beams aligned in perpendicular layers, then glued — or laminated — together like a giant sandwich.
The resulting panels are lighter and less energy-intensive than concrete and steel and much faster to assemble on-site than regular timber, proponents say. Because the grain in each layer is at a right angle to the one below and above it, there’s a counter-tension built into the panels that supporters say makes them strong enough to build even the tallest skyscrapers.
“We believe that two to five years out, down the road, we could be seeing this grow from just 20 percent of our business to potentially 60 percent of our business,” said Redfield, D.R. Johnson’s chief operating officer. “We’re seeing some major growth factors.”
From Maine to Arkansas to the Pacific Northwest, the material is sparking interest among architects, engineers and researchers. Many say it could infuse struggling forest communities like Riddle with new economic growth while reducing the carbon footprint of urban construction with a renewable building material.
Brattleboro – Despite the importance of the forestry industry to Vermont’s economy, fundamental shifts in the market for low-grade wood threaten the survival of many small businesses and the viability of the state’s forests.
“We manage our forests for all kinds of things including durable wood products,” said Michael Snyder, Commissioner of Vermont Forests, Parks and Recreation. “We specialize in high-grade, high-value-added wood products. In fact, they are world renowned. But in order to grow that high-quality product, we need to manage the woods.”
And managing the woods entails – just like cultivating a garden – pulling the weeds, said Paul Frederick, Wood Utilization and Wood Energy Project Leader for the Vermont Department of Forests, Parks and Recreation. “We need to weed out the garden to let the healthier trees utilize the space. If we don’t have the markets for the soft wood, that work is very difficult.”
The tariff barriers imposed on Canadian softwood lumber cost American consumers a fortune, all while enriching a limited group of producers, shows a Viewpoint published today by the Montreal Economic Institute (MEI), a Canadian public policy research center.
Since the entry into force of the latest Softwood Lumber Agreement between Canada and the United States, tariffs at the border have reduced Canadian exports and have allowed American producers to increase their market shares. The latter thus registered additional net earnings of US$4.31 billion between 2006 and 2015.
American consumers, however, are the big losers of this deal. Since the Canadian lumber targeted by the Agreement is used primarily for residential construction on the American market, American consumers have had to get their wood from an alternative and more expensive source.