The softwood lumber tariffs against Canada's forest sector that the new U.S. administration has announced stand to hurt both countries.
The softwood lumber tariffs against Canada's forest sector that the new U.S. administration has announced stand to hurt both countries.
Derek Nighbor, Forest Products Association of Canada CEO, told the Round Up Friday morning during a phone interview that the countervailing duties imposed against five major Canadian producers could hurt not only the domestic market and consumers but also American homebuyers and renovators as well.
"If softwood lumber is coming into the U.S. from Canada with a 20-plus per cent duty, that drives up the cost for American buyers," he said.
"This is lose-lose."
Additionally, the U.S. can domestically only satisfy about three-quarters of its demand for lumber, he said.
"The softwood lumber that Albertan and Canadian sawmillers are sending to the U.S., the Americans need it — they can't meet their domestic demand."
So efforts must be made to call on all levels of government "to stand tall and push back on this unfounded trade action."
The dÈj¿ vu reminds Nighbor of the definition of insanity — to continue doing the same thing over and over again, expecting a different result every time.
"This is the fifth time now that the U.S. has used the same arguments and has taken action, accusing Canada of subsidizing its forest sector. The U.S. has always lost," he said.
"It's very frustrating."
Whatever happens, this is no time for political divides, he stressed.
"Whether Liberal or NDP or Conservative or Green, this is not a time for partisanship," he said, adding the U.S. government "would love nothing more than to divide" Canada's federal and provincial governments, as well as forest sector producers.
However, until the American administration makes a final decision next January, the Canadian government has no recourse for taking legal action such as appealing the tariffs, he said.
"There's no legal opportunity quite yet for the Canadian government to push back on this."
That means diplomacy and advocacy are the main tools available to educate Americans on why the tariffs will only hurt people on both sides of the border, he said.
In the meantime, these trade negotiations are going to set the stage for future deals, he said.
"This is the first big trade action that we're seeing from the Trump administration. This is going to set the tone for NAFTA 2.0."
Meanwhile, other Canadian industries such as dairy, beef, automotive and mining, are all keeping a keen, close eye on the developing situation, he said.
"We're getting a lot of positive feedback from other sectors. They know we're kind of the guinea pigs. This is a real rallying call for Canadians, government and industry to stand tall against this."
