Timber prices lead to tax cut for Canadian exporters12 May 2010
Many Canadian softwood producers will see US taxes on their exports disappear next month thanks to a firming in prices, according to industry newsletter Random Lengths.
Duties imposed on Canadian shipments to the US, under the terms of the 2006 Softwood Lumber Agreement, are on a sliding scale and reduce to zero when framing lumber prices average US$356 or higher over a four week period.
That test has already been met, which will lead to the tax being cut to zero.
Timber producers in British Columbia and Alberta stand to benefit the most from the news. They were paying 10% SLA tax during May.