Page 29 - Georgia Forestry - Summer 2017
P. 29
BACKGROUND
So, why is there a trade dispute?
On Oct. 12, 2015, the 2006 Softwood Lumber Agreement between Canada and the U.S. expired.
The agreement was intended to reduce the competitive imbalance created by the Canadian Provincial Government. Because the government owns the majority of the country’s timberland, they can provide standing trees to Canadian producers for an administered fee that is far below the market value
of the timber, as well as a number of other subsidies. This causes an imbalance in the U.S. marketplace.
Immediately following the expiration of the agreement, Canadian imports surged from 29.5 percent of U.S. total consumption in the third quarter of 2015 to 33.1 percent in the fourth quarter of the same year and to 34.1 percent so far in 2016. The volume of imports from Canada in the first eight months of 2016 was more than 33 percent higher than in the same period of 2015. This gain in market share came at the direct expense of U.S. producers.
According to GFA President
and CEO Andres Villegas, it is important to focus on continuing
to educate Congress on the importance of fair trade to the long- term sustainability of our nation’s working forest.
“It is critical that we explain
the economic, environmental
and societal benefits of Georgia’s working forests and forest product industries at every opportunity,” Villegas said. “Fair and equal trade is not only the right thing for forestry, it is the right thing for Georgia.”
The Georgia Forestry Association continues to partner with the U.S. Lumber Coalition to advocate for a new trade agreement with Canada. To learn more about the 2006 Softwood Lumber Agreement and the U.S. Lumber Coalition, visit www.uslumbercoalition.org.
DIG. SAFELY. Online Phone
Th
outh’s Land Sales Leader
SElandgroup.com
866.751.LAND
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Harvest Management Inventory Accounting & Budget Tax Administrative
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