West Hill Collegiate Institute - International Business

Established in 2012, by Daniel Shafransky and Raymond Ahmad

Present Day: 2017

Image result for softwood lumber donald trump

  • Khalid Matin
  • Ahan Kamran
  • Ossama Mohamed

8 Comments

  1. *** PART 1 ***
    —————-

    The Canada-US Softwood Lumber Agreement is one of the most debated and largest disputes between these two countries. This became an issue in 1982 when business and politics collided, resulting in a conflict of interest. This is still a major political issue today as it impacts the economy, Canada’s GDP, third party corporations stocks, and peoples jobs. Canada and the United States have fought many times in court, Canada repeatedly winning as the World Trade Organization sides with Canada. Disputes continue to unfold as new politicians have been elected on both sides of the border, regardless of international laws and trade agreements such as NAFTA, the United States continues to battle this in court. The U.S Department proposes anti-dumping and anti-subsidy duties estimated to affect $5.56 billion worth of imports. This and many other proposals between these two countries have resulted in failed talks and negotiations.

    —————-

    *** PART 2 ***

    —————-

    “A controversial agreement in the softwood dispute” – Sept. 11, 2006

    The audio clip that I listened to is a discussion between Simon Potter and Barbara Budd. They essentially discuss a deal that proposed $4/$5 billion to be returned. The United States would get $1 billion to restore communities effected by the dispute. This resolution also requires Canadian’s to drop all law suites against lumber corporations in the United States. An issue would be that the investors of the lumber companies in the United States refused to pay the $1 billion. The two discussed these issued but said it would help resolve the issue in the long run as long as the deal goes through.

    —————-

    *** PART 3 ***

    —————-

    Since my topic is current day, I personally believe that the United States and the Republic House + Congress is only looking to benefit the lumber corporations. These third parties flood money towards congressmen/women benefiting themselves but they end up damaging the economy in the long run. Since the lumber is owned by private organisations they don’t need to pay stumpage fees, and generate themselves billions in income while destroying jobs and smaller companies. The United States has also barred lumber to all Canadian producers except two. The United States and the corporations that own the country continue to bully both domestic and international competition. Many laws and regulations in the states negatively impact their own citizens, so it isn’t a surprise what they’re doing to Canada. I believe Canada should take this negotiation much more seriously, and continue to fight the States in court.

    —————-

    *** CITATIONS ***

    —————-

    Barriault, F., Bellavance, F., Dutil-Seguin, J., Gagné, C., Gendron, A., Harton, P., . . . Wyatt, S. (2017, March 14). The softwood lumber dispute: Is a solution possible? Retrieved November 02, 2017, from http://pubs.cif-ifc.org/doi/abs/10.5558/tfc2017-005

    Softwood Dispute: A controversial agreement – CBC Archives. (2017, March 09). Retrieved November 02, 2017, from http://www.cbc.ca/archives/entry/a-controversial-agreement

    R. (2017, November 02). U.S. finds Canada is dumping softwood lumber, sets duties after talks fail. Retrieved November 02, 2017, from http://business.financialpost.com/commodities/agriculture/u-s-makes-final-finding-canada-lumber-dumped-sets-duties#comments-area

    S. (2017, November 02). U.S. cuts softwood lumber duties on all Canadian producers – except for 2 companies. Retrieved November 02, 2017, from https://globalnews.ca/news/3839629/us-cuts-canada-softwood-duties/

    Hayter, R. (1992, January 1). International Trade Relations and Regional Industrial Adjustment: The Implications of the 1982–86 Canadian-US Softwood Lumber Dispute for British Columbia. Retrieved November 02, 2017, from http://journals.sagepub.com/doi/abs/10.1068/a240153#articleCitationDownloadContainer

  2. 1. The Canada–U.S. softwood lumber dispute is one of the largest and most enduring trade disputes between both nations. This conflict arose in 1982 and its effects are still seen today. Today Canada’s softwood lumber industry faces average tariffs of about 27 per cent after the U.S. Department of Commerce added an additional 6.87% in preliminary average anti-dumping tariffs but final combined duties will be applied around the end of the year when all determinations have been made. Commerce Secretary Wilbur Ross announced separately that an internal investigation has determined that it was appropriate to exclude Atlantic Provinces of Nova Scotia, P.E.I. and Newfoundland and Labrador from softwood lumber duties as requested by the U.S. industry and Canadian officials. Canada’s share of the U.S. softwood lumber market was 27 per cent in May, down from 31 per cent a year earlier, according to monthly Canadian government reports which represented a $165-million loss in exports for the month, including $105 million in B.C. and $18 million in Quebec. A negotiated settlement on softwood expired in 2015, which triggered the latest round of tariffs and the previous settlement took more than four years to negotiate. Canada can’t file an appeal of the tariffs until early next year after the final determinations and decisions from the U.S. government are issued and it will cost Canadian industries $1.7 billion a year and cut approximately 2,200 jobs until a softwood settlement is reached. This lumber dispute is costing many Canadians jobs in the forestry sector. Overall, the softwood lumber dispute is effecting Canada a lot and causing them to pay high tariffs and putting jobs on the line.

    2. Trudeau helps to reveal plans on what’s going to happen about the softwood lumber dispute. It is affecting Canada in a lot of ways especially in the areas of where most of the jobs are coming from lumber and if it continues to go in the ways it is, many people are going to be unemployed and have no income and because of this dispute the federal government brought a nearly 900 million dollar support package to the community of whitecourt to support good jobs and create new opportunities. There are loans of thousands of dollars to industries and extended benefits to employees with jobs on the line. A negotiated agreement that brings predictability and stability on both sides of the border is what we need and is the best outcome for Canadians and U.S. citizens which will give a good preservation of good paying midde-class jobs in both countries.

    References:
    Websites
    Marowits, R. (2017, June 26). By the end of 2017, softwood lumber will cost almost 7% more to sell to the U.S. Retrieved November 02, 2017, from https://globalnews.ca/news/3557306/us-softwood-lumber-new-taxes/
    S. (2017, June 26). U.S. excludes three Canadian provinces from softwood lumber probe. Retrieved November 02, 2017, from https://globalnews.ca/news/3556881/us-excludes-3-canadian-provinces-softwood-lumber/
    Alini, E. (2017, June 19). Jobs on the line as U.S. slated to add new softwood lumber duty. Retrieved November 02, 2017, from https://globalnews.ca/news/3538784/softwood-lumber-dispute-new-duty-tariff/
    Video
    Trudeau government unveils plan to help softwood lumber producers | Watch News Videos Online. (n.d.). Retrieved November 02, 2017, from https://globalnews.ca/video/rd/958347843609/

  3. part 1** The Canada-Us softwood lumber dispute is one of the largest and most enduring trade disputes between both nations, however, canada and Us are closing in on softwood lumber deal, but Canada must chop down one big remaining impediment to a deal on softwood lumber and this obstacle involves wood from neither the Us or Canada but from different countries, like Germany Sweden, Chile Brazil and Russia. Over distant imports is complicating the goal of a quick softwood agreement, Something both north American governments say they want to achieve in order to start Nafta talks without any conflicts looming overhead. When American supply falls short, The two governments have already agreed to split the Us lumber market by percentage. Americans would supply around 70 percent and Canada the other 30 percent.

  4. part 2** video “trumps America first policy will impact BC softwood lumber industry. this video explains how the softwood lumber agreement basically expired when trump took office. under his administration, it is their decision whether or not they would continue participating in the softwood lumber agreement. BCS premier explains that “the thing about Donald Trump is that he talked to Americans about jobs and affordability. one of the things we also know is that if Canadian softwood doesn’t come in the united states the price of housing goes way through the roof.” so expelling the softwood lumber agreement not only has a negative effect here in Canada but it will also affect the united states of America.

  5. 3. In my opinion the softwood lumber dispute has changed alot but there is also some similarities as when it started. Today and also in the past this dispute put many jobs on the line in the forestry sector and made Canada pay high tariffs. The difference is that the tariffs are higher today. This dispute is like its never going to end as British Columbia being the largest producer of softwood lumber continues to raise prices for its buyers and their never going to come to an actual agreement. This is destroying the economy because alot of these little towns rely on their lumber jobs but since alot of these industries can’t afford to pay there employees so a lot of people have lost their jobs and are un-employed. This is negatively affecting Canada and they need to come to an agreement to fix the lumber industry sector as soon as possible.

  6. The softwood lumber dispute is one of Canada’s major conflicts. Many people are finding themselves under difficult circumstances as a result of this dispute. In the present day, the dispute hasn’t changed its position. There has been no progression, due to there being extremely high tariffs that are still in action. Many small towns where that hold the softwood lumber are getting status of low employment, since many are losing their jobs. This is occurring because companies cannot afford to have many employees since it costs a lot and there are a lot of tariffs/ taxes. This is causing a poor economy in these small towns, and they are not able to strive. This is the same position that the dispute was in, in 1991. Back then they were finding it costly and were unable to provide jobs and that is the same situation today.
    This shows that nothing has changed.

  7. Part 3. Although Canada and the United States are close trading allies, this problem with softwood lumber has been a problem for the two countries for over 30 years. These trade tariffs make it too expensive for companies to buy lumber which forces them to either pay their workers less or be forced to waive workers from their job. This dispute has made little change since 1982 when it all began, preventing small economies to grow and having a low employment rate in the lumber field due to trading problems between the two countries with their main purpose being money that is being gained. The lumber dispute today will cause many people to lose their jobs, making it harder for the unemployed to get employed and for a selected amount of small business to either struggle or fail. I honestly think that there should be a new set of rules on softwood lumber.

Leave a Reply