Q: On Friday Helen suggested an innovative solution re avoiding potential duty but even if it was feasible the solution would not restrict supply which is the goal for the US players.
The softwood lumber trade dispute is not so much about finished lumber crossing the border as it is about land management. In recent years, the largest CDN domiciled companies have purchased 30-40 mills in the US because buying US mills is more profitable than investing in CDN mills. That is evidence against the US claim that gov't subsides make it cheaper to produce in Canada. Also, US owners have been bailing out of operating Canadian mills.
Large US companies want the value of their timber land to increase which is mainly why they attempt to restrict supply. For example, the largest US timber holder is WY, (NY). WY owns about 13,000,000 acres of timber currently valued about $1,000 acre. If they can restrict supply, the average value could appreciate to $2,000 - $2500 acre. The "trade" dispute is more about wanting to increase US based inventory values than unfair subsidies for CDN manufacturers.
Phil
The softwood lumber trade dispute is not so much about finished lumber crossing the border as it is about land management. In recent years, the largest CDN domiciled companies have purchased 30-40 mills in the US because buying US mills is more profitable than investing in CDN mills. That is evidence against the US claim that gov't subsides make it cheaper to produce in Canada. Also, US owners have been bailing out of operating Canadian mills.
Large US companies want the value of their timber land to increase which is mainly why they attempt to restrict supply. For example, the largest US timber holder is WY, (NY). WY owns about 13,000,000 acres of timber currently valued about $1,000 acre. If they can restrict supply, the average value could appreciate to $2,000 - $2500 acre. The "trade" dispute is more about wanting to increase US based inventory values than unfair subsidies for CDN manufacturers.
Phil