With the Canada-U.S. softwood lumber agreement set to expire tomorrow, analysts are warning the industry needs to prepare for risk.
Naomi Christensen of the Canada West Foundation says the best way Canada can do that is to bulk up it’s roster of trading partners.
“To continue diversification. There’s been a lot of focus on China in the last decade, which is great because we are selling a lot to China. B.C. sells the most to all the provinces. But there are some other markets like Vietnam, Thailand, Indonesia as well.”
Christensen says with a softwood deal off the table – Canadian lumber producers will likely soon be butting heads with their U.S. counterparts.
“Americans have been raising this issue since the 1800s, they’ve been going after our industry for over a century, so I don’t think they’re suddenly going to stop.”
Christensen says the with the U.S. wrapped up in an election cycle, there’s little hope of signing a new deal soon.
She says the silver lining is a clause in the agreement, which blocks any new tariffs for at least a year.