The US has fired opening salvos in a bid to reopen the Softwood Lumber Agreement with Canada after further accusations of unfair pricing practices by timber producers in British Columbia.
The dispute centres on the pricing of timber damaged by mountain pine beetle and harvested for logging fees from public lands in BC.
The US, where most timber lands are privately owned, said the prices are so low as to constitute a subsidy to Canadian companies. BC officials said it follows the market-based pricing system written into the agreement.
US trade officials have requested consultations and if they cannot reach agreement within 40 days of talks, either side can request arbitration, which was the basis for the original agreement.
“British Columbia’s stumpage practices depress already weak lumber markets at a cost of US jobs,” said US lobbyists.
BC Forest minister Pat Bell said “we have followed the rules and I fear this is more closely related to the electoral cycle in the US”.
