Various firms seek different solutions in softwood showdown
OTTAWA — Tension surrounding the latest softwood lumber showdown between Canada and the United States is not just limited to the lumber industries in the two nations.
As Canada’s lumber companies brace for the expected announcement Tuesday of new import tariffs on Canadian softwood heading into the United States, internal battles within the Canadian industry may prove just as difficult for the federal government to manage as its dispute with the United States.
Harry Nelson, a professor of forestry at the University of British Columbia, said the largest forestry companies, especially in British Columbia, can withstand a long dispute with several years of U.S.-imposed import tariffs on softwood. They not only have bigger cash reserves to help weather the storm, they have more market options in non-U.S. markets, such as China or India, which don’t make financial sense to any other region in Canada.
“Any company that is larger, has more production in the U.S. and has the ability to go to the Chinese or offshore export market is going to be in a better position,” he said.