New Trade Deal Could Open Door for Future Lumber Talks

Filed in Trade by on October 3, 2018 8 Comments

The new trade deal between the U.S., Canada and Mexico that will replace the North American Free Trade Agreement (NAFTA) with the United States-Mexico-Canada Agreement, or USMCA, has the potential to yield positive developments regarding the ongoing U.S.-Canada lumber trade dispute.

All three nations must still ratify the new agreement.

While the accord does not specifically address the lumber trade conflict, it does leave in place the dispute resolution mechanism from NAFTA’s Chapter 19. Now moved to Chapter 31, it allows a panel with representatives from each country that is party to a dispute to challenge tariffs that may be imposed.

Under NAFTA, the Chapter 19 mechanism has been successfully used by Canada in the past to challenge the U.S. on its softwood lumber trade restrictions.

With the negotiations on the USMCA accord now completed by the three nations, this leaves open the possibility that the U.S. and Canada can now focus on resolving bilateral trade issues regarding softwood lumber.

NAHB Chairman Randy Noel has sent a letter to President Trump urging him to negotiate now.

For more information, contact David Logan at 800-368-5242 x8448 or Alex Strong at x8279.

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Comments (8)

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  1. Norm says:

    There is no justification for Trump’s tariffs on Canadian soft lumber.

    • Marianne says:

      There is, if the tariffs have been lopsided like we’ve seen with China and other countries.

    • Cindy says:

      There is no justification for the US to be subjected to unfair trading practices. Be thankful for the economy because people with jobs buy houses. I am thankful for regulation changes that make borrowing money to develop and build possible. Private builders are unleashed. Trade with the USA and Canada, including lumber, will be back to normal soon. A small amount of pain for a whole lot of gain for different segments of our economy.

    • david Thompson says:

      How about all the tariffs and limits that Canada puts on us?
      Trump is winning against Canada’s one sided dealings.

    • Sam Pitzulo says:

      I agree 100% . We need to look at the big picture.

  2. Paul Dufford says:

    The tariffs imposed on lumber is part of a much bigger picture that has gotten the US in a much better position in regards to trade. Though you are correct that it wasn’t necessary to put them on lumber, it has moved these countries, Canada included to renegotiate other commodities that this country has been getting raped by others for years. I feel it has been done for the greater good and given our president the leverage necessary to get what has needed to be done for a very long time.

  3. Vernon Young says:

    This will help, but until we prohibit the export of timber like we did oil the cartel will be in control.

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