Canada and US seen indecisive on extension of Lumber Trade Agreement

VANCOUVER (Scrap Monster): The Canada-US Softwood Lumber Agreement is about to expire in October 2015. However, both parties are still uncertain as to whether the agreement should be extended for longer period. While, Canadian producers favor extension of the agreement, the US lumber body has raised objection against renewing the agreement.

The two countries had signed the deal in 2006. According to Canadian lumber producers, the agreement has helped in bringing peace in trade between the two countries. However, US lumber Coalition- the trade body representing lumber companies and timber owners in the country has already stated that it is not in favor of extending the deal. The body had conveyed its stance to the government last week. The Coalition is believed to be against continuation of the agreement in its current form. It demands certain changes to the present agreement before it is extended.

The US producers are seen worried over production costs. They argue that Canadian lumber is being subsidized through government forest policies. The country has initiated several trade actions against Canada with regards to this.

On the other hand, Canadian producers have expressed their willingness to continue with the agreement. According to B.C Lumber Trade Council, the managed lumber trade has benefited both countries and helped to trim down trade disputes.

The deadlock continues as Canadian companies want extension of the agreement in its current form, whereas the US Lumber Coalition clearly objects the current agreement.