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Softwood Lumber Agreement Essay

  • Submitted by: Gabbee
  • on March 25, 2014
  • Category: History
  • Length: 1,299 words

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Below is an essay on "Softwood Lumber Agreement" from Anti Essays, your source for research papers, essays, and term paper examples.

The Softwood Lumber Agreement

Irrefutably then, the softwood lumber industry is equally important to
both the United States and Canada. For the United States, the demand
for lumber exceeds what its domestic mills can supply, and as a result
the housing industry as well as other industries has come to rely
heavily and depend greatly on Canada for stable, predictable access to
quality products. On the other hand, for Canada, the softwood lumber
industry have proved itself essential to the stability and success of
the Canadian economy, supporting thousands of jobs in communities
across Canada and creating many positive spin-off effects in related
industries and services.
Notwithstanding, the United States lumber industry through the US
Lumber Coalition has been recurrently seeking the US Congress’s
approvals to restrict Canadian softwood lumber imports through the
application of U.S. countervailing duty and antidumping laws – laws
that allow the imposition of import duties when a U.S. industry is
allegedly harmed by subsidies in the exporting country (countervailing
duties), or when a U.S. industry is allegedly harmed by imported
products sold at prices that are lower than the cost of production
(dumping). As such, despite efforts preceding the last decade,
tensions and allegation and litigations still exist, and in a recent
attempt, both countries signed on and ratified the second U.S.-Canada
Softwood Lumber Agreement (SLA) in October 2006, which saw to the
termination of more than 20 different legal disputes surrounding the
allegations of Canada's softwood lumber subsidies and below cost of
production sales in the U.S. market.
The U.S. lumber industry not only believed that such an agreement
would level the playing field against subsidized and unfairly traded
Canadian softwood lumber, but also that the compromises made in the
agreement (SLA) would and could provide a level playing field against
subsidized Canadian lumber as long as...

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