Duties placed on Canadian lumber by the U.S. Department of Commerce in the name of protecting American jobs are a false flag
Fresh cut lumber stacked at a mill along the Stave River in Maple Ridge, B.C., on April 25, 2019. The federal government says Canada will challenge recent increases to softwood lumber duties by the United States.I want to thank late-night diplomat Stephen Colbert for raising the issue of “something about soft wood” with Prime Minister. With an upcoming review of CUSMA on the horizon and the presidential election in November, it was good to hear the Prime Minister speak on this issue.
the largest global dispute since the end of the Second World War, with origins stretching back to the Jay Treaty of 1794 – is the most apparent example affecting Ontario’s lumber producers. Canadian lumber producers have paid more than $9-billion in duties since the last agreement ended in 2017. This pot of money sits in the U.S. and grows daily with every shipment of Canadian lumber.
This strategy can have the opposite impact of what protectionism is trying to achieve, resulting in the weakening of cross-border supply chains and exposure to security and trade risks from our common geopolitical rivals. The U.S. electorate should care about higher prices because of politically motivated trade barriers, and American businesses could see a continued fracturing of supply chains.
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