The deal calls for tariffs on Canadian lumber when U.S. prices fall.

If the softwood lumber agreement initialed by the U.S. and Canada two weeks ago were in effect today, as prices have been trending downward, the American lumber industry would be protected by export taxes. The softwood lumber agreement, which was initialed on July 1 and is expected to be formally signed in August, provides for unrestricted trade when prices are higher than $355 per 1,000 board feet, but imposes export taxes on Canadian lumber shipped to the United States when market prices fall, with a maximum tax of 15 percent when prices fall lower than $315. Although a spokesman for the U.S. Trade Representative’s office in Washington, D.C., said the U.S. considers it a done deal, portions of the agreement must be approved by Canada’s Parliament, which returns in September.

News notes are courtesy of Southern Forests Network News Notes
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