Future of softwood lumber agreement critical to Alberta’s forestry industry, says AFPA

CALGARY (Scrap Monster): The future of softwood lumber agreement between Canada and the US which is about to expire next month, is turning out to be a big challenge for Alberta’s forestry industry.

According to Paul Whittaker, President and CEO, Alberta Forest Products Association (AFPA), the extension of agreement will be the hottest topic of discussion during the Annual General Meeting of the Association which is scheduled to be held in Jasper next week. Incidentally, the softwood lumber agreement between the two countries is set to expire on October 12^th this year.

Despite several trade disputes over softwood lumber exports originating from Canada to the US, the trade agreement had managed to provide relatively stable trade platform during the past several years. The agreement has played significant role in Alberta’s lumber exports to its main external market, the US. As per estimates, AFPA member companies produced $1.3 billion worth of lumber during the entire year 2014. The US accounted for nearly one-fourth of the total lumber exports by AFPA member firms during this year. The exports to other destinations including Japan, China, South Korea and Taiwan accounted for almost 11%.

The AFPA has for long time has demanded renewal of the agreement. Other industry bodies too called upon the provincial and federal governments to go ahead with the deal. The Canadian Ministry of International Trade has expressed its support towards renewal of the agreement with the same terms. Meantime, BC Lumber Trade Council pointed out that no talks have happened so far between the two countries in extending the existing agreement. However, the US is seen not interested in renewing it at the present form.

The agreement which had originally come into force in October 2006 for a period of 7 years was later extended for additional two years.