New Canada-US softwood lumber agreement under negotiation

A new deal for sawn softwood exports from Canada to U.S. is under negotiation, after the 2006 Softwood Lumber Agreement expired in October 2015. 

Many Canadian exporters are in favour of a renewal of the previous agreement, which includes an escalating export tax based on sawn wood prices. However as a weaker Canadian Dollar has made Canadian softwood cheaper, American sawmills are lobbying for greater trade barriers in the new agreement. Without an agreement U.S. companies can file trade cases after October 2016 against imports from Canada.

Since the 2006 agreement, Canada’s market share in the U.S. has reduced. Canada’s timber supply has declined and many Canadian producers have bought U.S..