Why the US wants to tear us down in the lumber industry
Read it and weep, US producers. Here's the money quote:
Southern U.S. sawmills are currently unprofitable because of high wood costs.
Well no duh. Also, the relatively higher US dollar makes them really expensive and the wood is of low quality. All the US construction outfits use cedar (from Canada or the US pacific northwest) or brick.
Hmmm, I guess the whole Softwood tariffs really have backfired. First of all, when the 27% softwood tariffs were put on, the Canadian producers increased productivity to maintain sales and get more money out of the enterprise. Meanwhile, the lumber industry in Georgia was using poor quality wood and was/is extremely unproductive. So, the thing is, when the tariffs come down the US producers will go down. And there isn't a thing they can do except scream bloody murder.
Secondly, the US has lost 3 straight NAFTA tribunals which have proved Canada has never had a subsidized industry for lumber, we just have a different system from the US. Irregardless, the Bush administration proves that when it comes to Softwood lumber, agricultural subsidies for the midwest, or subsidies for the steel industry, he talks a good game about free trade but does not deliver. the sad part is, the american consumer is the one who pays for this with increased prices for anything they buy, and the tariffs going to a now bloated US government.
Nice policy guys.
Friday, June 20, 2003
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