The U.S. decision to impose duties averaging 30 per cent on Canada’s softwood lumber is expected to result in a loss of 1,100 jobs and $400 million in profits in 2017, according to the Conference Board of Canada.
The think tank released a report on the outlook for Canada’s wood products industry which had been showing strong growth before the U.S. imposed new duties. Softwood exports have been the subject several trade disputes between the two countries.
Duties encourage ‘a further pivot toward Asian markets’
The think tank’s Michael Burt concludes that “the U.S. remains the dominant destination for Canadian wood products exports” but “the new trade restrictions could encourage a further pivot toward Asian markets, particularly China where growing demand for wood products recently pushed imports of logs and limber…to their highest level on record.”