The Canadian dairy and softwood lumber industries remain unsettled as U.S. President Donald Trump calls to further his protectionism stance, imposing a tariff on Canadian softwood exports and cautioning something similar on dairy products.
Softwood is the name of the game for one of Cochrane’s largest employers, Spray Lake Sawmills, with over 200 full-time employees.
While the sawmill is certainly not in favour of Trump’s initial duties on softwood exports ranging from three to as high as 24 per cent – with more anticipated to come - the immediate impacts look to be more indirect.
“Directly, it doesn’t affect SLS as we generally sell all our product into the Canadian market … down the road we could be indirectly affected,” said Ed Kulcsar, woodlands manager for the sawmill, adding that the culmination of a reduced demand south of the border combined with a tariff could result in a surplus of Canadian product at a disadvantage.
Kulcsar said that they are “disappointed that the U.S. has chosen this course of action once again with tariffs” and that the American lumber lobby has “such political influence.”
The tariffs will be implemented immediately and 90 days retroactively, due to what the U.S. Commerce Department determined an “unusually massive influx of Canadian lumber prior to the tariff announcement.”
For the local spruce, fir and pine producer, however, the impacts are not believed to be direct given that their market is Canadian, namely western Canadian lumber wholesalers.
“We will continue to focus on the Canadian market,” said Kulcsar, with respect to future international deals that Prime Minister Justin Trudeau might strike with such players as China.
According to Banff-Cochrane NDP MLA Cameron Westhead, the province will be working closely with the federal government “to defend Alberta jobs and fair market access.”
The sawmill is a member of the Alberta Softwood Lumber Trade Council, which seeks to defend Canadian interests.
Kulcsar said that while the 2006-2015 Softwood Lumber Agreement between Canada and the U.S. wasn’t perfect, it at least provided stability and certainty in the marketplace.
While a free trade agreement would be “ideal,” at least the implementation of a “fair agreement” would offer some positives, with “fair” being synonymous with flexible (moving tariff or quota).
Westhead said that the province “believes a new and lasting deal is needed and (the province) wants to ensure that any deal supports our forest industry and the workers who support their families in this important industry.”
At present, it would appear the two countries will move forward with litigation, with Canada taking a firm stance that the American move is “unfair.”
Lumber has long been one of the biggest trade disputes between Canada and the U.S., bolstered by a possible renegotiation or rewrite of the North American Free Trade Agreement (NAFTA).
