Is the softwood lumber deal a good one?

Submitted by
Ken Boshcoff M.P.

Will the new softwood lumber deal help Northwestern Ontario? Canadian forest companies have been forced to pay huge tariffs, totaling over $5 billion to date, to the U.S. Government. Millions more have been spent on lawyers and consultants in both countries.
It looks like such an unfair deal could have been agreed to many times in the past. The financial position of many companies has led to their conclusion that they should accept this truce. Companies can now regroup as they await the return of 78% of the tariffs. Some companies are relieved for the stability and many workers are just grateful for their jobs. Could we have done better? Yes.
Only time will tell if this deal is indeed good for both sides. Members of Parliament have not yet been provided full information on the details of this agreement although it has been several days since the announcement. We are currently unsure whether this is a framework for an agreement or if the deal is complete. I will continue to call on the Government to provide Parliamentarians a full briefing on the details.
I am also concerned with the term, “Current market conditions” It is clear to all that market conditions are in a constant state of flux. When market conditions change, there will be duties and tariffs. What will be the cost of these new duties and tariffs for Canadian stakeholders? Will we be back in the same place?
Additionally, Canadian companies have been forced to leave $1 billion of illegally collected tariffs in American pockets. $500 million of this amount will go to the US lumber coalition – the very coalition who has been the cause of this dispute. It will pay their bills and establish a fund to fight Canadian companies in the future.
Of specific concern to us in the Northwest is a clause called “Anti-Circumvention”. This means that once we achieve regional (lower) pricing for energy, the Americans can overrule the policy and prevent any Provincial support that would come into effect.
There are several other sections that are of cause for concern; however, space in this column is limited. I would be happy to provide a more detailed explanation to anyone who wishes to contact me.
It is certain that this deal is not perfect. Canada has backed down to American pressures in the hopes of ending a bitter and long trade dispute. I remain hopeful that this agreement will provide the forest industry in Northwestern Ontario some relief and will allow local companies to rebuild and reinvest towards their own long-term success and competitiveness.