Canadian producers have been paying U.S. lumber duties since April 2017.
The softwood lumber dispute is a decades-long trade debate over the structure of Canada's timber industry that intensified when the 2006 U.S.-Canada Softwood Lumber Agreement expired in October 2015. Since then, the U.S. has periodically imposed countervailing duties and anti-dumping duties on Canadian softwood lumber imports.
“Québec has always been an ally of the United States, offering consumers on both sides of the border softwood lumber products of the highest quality, harvested and transformed in a sustainable manner," said Canadian Ambassador Raymond Chrétien. "Québec values its forest industry, which constitutes a strong economic sector, and believes in promoting strong relations between all parties involved.”
“The meeting was very productive and allowed us to discuss the current market situation," said Jean-François Samray, president and CEO of the Quebec Forest Industry Council (QFIC). "We are still on the same wavelength regarding the U.S. litigation.”
Samray explained that U.S. taxes have not only raised prices for consumers and builders, but have also contributed to the doubling of the proportion of wood imported from Europe.
“CIFQ remains committed to supplying quality, affordable and environmentally responsible wood products to our U.S. neighbors,” Samray said.
In the latest round of the trade dispute, Canadian producers have been paying U.S. lumber duties since April 2017, leading to a decline in Canada’s market share for softwood lumber in the United States, falling from 33% in 2016 to 26% in 2022.
The 2006 Softwood Agreement capped Canada’s market share in the United States at 34%, but the U.S. timber industry has lobbied for a revised system that would include quotas to limit Canada’s market share to 20%.
“Housing affordability is at its worst level in more than a decade and the increase in lumber costs in 2020 and 2021 easily added $50,000 or more to the cost of building a new single-family home,” said NAHB’s Chief Economist Robert Dietz. “With builder sentiment strengthening, NAHB is forecasting gains for the pace of single-family construction during the second half of 2023 and the start of 2024."