The Financial Post reports in its Wednesday edition that Canada's lumber industry is in a stronger position to weather a U.S. trade battle than it was during the last major clash a decade ago, but smaller Quebec and Ontario producers would be particularly vulnerable to duties that may arrive within weeks. A Canadian Press dispatch to the Post says that B.C. producers such as West Fraser Timber, Canfor and Interfor have hedged their bets, purchasing sawmills in the U.S. primarily in the years when there was a truce over softwood. They have also seen softwood exports to China grow, giving them some degree of protection against tariffs that the U.S. could impose as early as May.
"The big players in the West are now in a more comfortable position than they were 10 years ago," says Andre Tremblay, head of the Quebec Forest Industry Council.
"We are in a much more delicate situation now than during the last conflict." Geographically unfavourable Quebec and Ontario sawmills largely missed out on the surge of shipments to Asia's largest economy. Canadian softwood exports to the country grew from $55-million in 2005 to $1-billion last year. China accounted for 10 per cent of total Canadian softwood exports last year.
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