Simplifying Softwood Spin

Will Horter’s article Simplifying Softwood Spin from the Dogwood Inititiave website/blog, is a great primer on the US-Canada softwood lumber dispute.

The Canadian Position:
Canadian governments argue they do not subsidize logging companies. They contend that low log prices are a function of a different system imposing differing responsibilities. They claim the issue in the dispute is US protectionism and the inability of the US industry to compete with Canadian efficiency. They claim the softwood dispute is all about market share, and they accuse the inefficient US industry calling for protectionist tariffs any time Canadian imports exceed 33% of the US market.

The U.S. Position:
The US claims that Canada subsidizes logging on public lands. These subsidies are found in ridiculously low stumpage rates and a complex hodgepodge of financial assistance programs. US manufacturers argue that 60% of their costs come from the cost of wood, while in BC tenure holders spend only 20% of their operational costs on stumpage, and often pay as little as 25 cents for logs the size of telephone polls.

The Reality:
Both countries are partially right, but neither tells the full story.

Digestible writing, cogent analysis, a clear point of view. The very essence of good grassroots journalism.

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