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By Curtis Galbraith

Business

AFPA cautiously optimistic softwood tariffs are coming down

Feb 6, 2020 | 5:30 AM

The Alberta Forest Products Association is cautiously optimistic about the possibility of lower American tariffs on softwood lumber.

Reports that came out Monday said reductions are coming in August.

Director of Communications Brock Mulligan says the Association is awaiting a formal notification, but this is still good news.

“Softwood lumber disputes hurt consumers on both sides of the border. They cause a distorted lumber market and far higher prices for American consumers. They cause lost jobs or, at least, lost opportunities at mills here in Canada and they also hurt people who work in the States and in Canada in sectors like retail and transportation.”

Mulligan says he is not sure why the Americans would lower the tariffs.

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“We’ve heard these reports, we haven’t seen anything official yet, but any progress forward on this file is important to communities like Grande Prairie that have so many jobs that rely on forestry.”

The reports say that for example, Canfor’s rate would drop from over 20 per cent to less than 5 per cent. Mulligan says there has been no official word yet, but reports of substantial cuts coming are encouraging.

“One way or the other, we feel the just solution here is free trade of lumber because our practices have been proven fair again and again by various international tribunals.”

The reductions in tariffs would start in August.

Mulligan says they don’t have a tally of how much the tariffs have cost Alberta lumber producers.