Minister Reiterates Province's Concerns About Softwood Lumber

NATURAL RESOURCES--Minister Reiterates Province's Concerns About Softwood Lumber

A meeting on Thursday, June 5, between International Trade Minister Pierre Pettigrew and the Maritime Lumber Bureau can only be a step forward in the fight to retain Atlantic Canada's U.S. softwood lumber tariff exemption, said Nova Scotia's Natural Resources Minister Tim Olive.

In his remarks at the meeting, Mr. Olive spoke of the province's deep concerns over the current federal proposal on softwood lumber. It appears to end the Atlantic region's special status and exemption from export restrictions. He reiterated industry and regional concerns that the cross-Canada quota regime is not what the U.S. has asked for, nor is it consistent with the assurances the region has had regarding its treatment in a negotiated settlement.

"I am hopeful that the meeting will make a difference for our region's softwood lumber industry," said Mr. Olive.

In the two decades that Canadian lumber exports have been under dispute, the region has been exempt from subsidy countervailing duties in the U.S. market because most wood along the East Coast is harvested from private woodlots. As a result, Atlantic exports have also been exempt from Canadian border taxes and quotas that were applied as part of negotiated settlements. The Atlantic provinces are concerned that Ottawa is prepared to effectively terminate the exempt status by including the region in whatever export quota/tax arrangement is agreed to with the U.S. May's offer by Canada, which has sent up red flags for the region's producers, proposes an as-yet-to-be determined quota allocation.

"Our industry is driven by private woodlot harvesting and the loss of the exemption would cripple our region," said Mr. Olive. "The tariff exemption acknowledges our industry's uniqueness and must be respected and protected."

"I am confident that with the concerted effort of our region's ministers, the lumber bureau and the industry, Mr. Pettigrew will realize the importance of this issue to Nova Scotia, New Brunswick, Newfoundland and Labrador, and P.E.I. and throw his support behind our region," added the minister.

The province's $1.4-billion forestry industry employs 13,000 Nova Scotians directly and more than 5,000 Nova Scotians indirectly and is vital to the provincial economy.