While most
softwood lumber producers get their logs from Crown lands, many companies in Atlantic Canada buy most of their logs from private woodlot owners at fair market value or grow them on their own land.
The U.S. lumber coalition later excluded Nova Scotia from the ongoing anti-dumping and countervailing duty investigations, but Canada was still treated as one country and differences among practices by
softwood lumber producers in the various provinces were largely ignored.
According to Mason, there's a good possibility the United States will exempt all Atlantic Canadian
softwood lumber producers from the countervailing duties before May 1.
Central Nova Scotia MP Sean Fraser, whose riding includes several
softwood lumber producers, estimated the province's annual softwood lumber exports at about $ 90 million.
An exemption from the countervailing duties for Atlantic Canadian
softwood lumber producers would give them a competitive advantage relative to other forestry companies in Canada, said Mason.
Tuesday, ERA Forest Products Research managing director Kevin Mason said the low countervailing duty J.D. Irving is being asked to pay will give it a competitive advantage relative to other Canadian
softwood lumber producers.
Not exact matches
Despite the U.S. Department of Commerce's decision to hit all other Canadian
producers with countervailing duties of 19.88 per cent starting this year, many industry insiders and political leaders are hopeful Atlantic Canadian companies can be exempted from tariffs on
softwood lumber exports to the United States.
The price of
softwood lumber rose by 2.3 % in December, while prices paid for ready - mix concrete, gypsum products, and OSB all fell, according to the latest
Producer Price Index (PPI) release by the Bureau of Labor Statistics.
Oregon is the nation's largest
producer of
softwood lumber and has had a thriving wood and paper products industry.
Overall
producer prices are up less than 3 % while
softwood lumber, OSB and gypsum prices are 30 %, 80 % and 26 % higher than at the start of 2012.