b'38American Journal ofTransportation ajot.com(DISPUTEcontinued fromUS Department of Commerce adding a 2025 forest product trade trendspage 36) further tariff on all international forest policy.Werepushingtogetbothproductsonthebasisthatdomestic By George Lauriat, AJOT sides to negotiate, which Canadians areproduction is essential to protect for keen to do, but we have US producersnational security reasons. The depart-On August 25th President DonaldWith Canada having such a heavywho want to block Canadian imports.ment has until late November to con-Trump suggested that imports of woodmarketshare,itisntsurprisingthatSoftwoodlumberproductioncludeitsinvestigationlaunchedthe products may pose a national securitythere have been calls for more diver- throughoutCanadawasapproxi- executiveordersignedbyPresident threata remark presumably madesificationinlumberimportsbyUSmately 20 billion board feet in 2024Donald Trump last March 1st. after the release to the administrationhome builders and lumber producers.with 60% exported to US markets. TheThe decision would likely apply of the Section 232 investigation report35.19% rate compared to 8% a yearto all countries and could include to into forest products ordered by Trumps eCtion232: t heC atCha ll ago is further challenging an industrypulpandpaper,woodpanelingand in March.Theinvestigationsfallunderthatalreadyfacesvarieddifficultiesotherforestproductsinadditionto The Section 232 investigation intoSection232oftheTradeExpan- in different regions of Canada, rang- softwoodlumber,saysIanDunn, forestproductsalignswithTrumpssion Act of 1962. Following the filinging from beetle infestations to forestthe Ontario Forest Industries Associa-overall approach to trade as Canadasof a petition [which can be initiatedfires, to insufficient replanting and/ortions president and CEO. Its any-exports of goods to the United Statesthrough a number of official channelsstricter harvesting regulations.onesguesswhattheratemightbe, in 2024 tallied $411.9 billion to mer- including industry groups] the Secre- but weve heard 15% to 25% on top of chandiseimportsof$349.9billiontary of Commerce then investigates toC anadiana ssistanCe the existing 35% on lumber duties.resulting in a $62 billion merchandisedetermine if the imports are a threat toPrimeMinisterMarkCarneyWadesaysanySection232tar-deficit.[Althoughthistremendousnational security. The Secretary thenannouncedvariousmeasuresoniffs atop the existing softwood lumber deficit ignores a sizeable US tradehas 270 days to present the findings inAugust 5th to help the Canadian indus- duties would pose a significant chal-servicessurplusandthefactthata report to the President with recom- trytransition.UptoC$700millionlengetohomebuilders,especially forest products are far from the larg- mendations for action.(US$505.5million)hasbeenprom- iftheyweresetatthe50%already est Canadian export to the US.]But Section 232 is something ofisedinloanguarantees,andC$500imposed on steel and aluminum out-Nevertheless, forest products repre- a catch all in the Commerce Depart- million (US$361 million) to increaseside the Canada United States Mexico sent one of the most visible of the tradements regulatory toolkit, as the defi- domestic processing, augment value- Agreement(CUSMA).TheNHAB commoditiesimportedfromCanada,nitionofexactlywhatconstitutesaadded production, as well as diversifyhas submitted a comment letter outlin-particularly softwoods, to the adminis- national security threat is often inmarkets in the longer term.ing how the inability to construct suffi-trationas President Trump empha- the eye of the beholder. And for thoseOn September 5th, Carney announcedcient housing could also be considered sizedattheWorldEconomicForumcompaniesandnationsexportingtoa Buy Canada policy that prioritizesa national security risk, he adds. inJanuarylivestreamaddresswetheUS,Section232investigationsdomestic materials for federal infra- U.S. homebuilders willingly pay [US] dont need their [Canada] lumberoften appear to be more a tool to cir- structureprojectsandencouragesa premium for Canadas spruce-pine-because we have our own forests cumvent the rule-based trading con- provincial and territorial governmentsfir(SPF)lumberbecauseitslighter In 2024 the US imported aroundventions of global commerce than atodothesame.Healsopledgedtodensity makes it easier to use in fram-$11.1 billion in forest products fromregulatory avenue to deal with threatsdoublethepaceofdomestichome- ing homes. As a result, most of Brit-CanadawithChinaat$2.11billionto national security.building to nearly 500,000 new unitsishColumbiassoftwoodlumberis inforestproductexports,adistantThe Section 232 investigation intowithin the next decade. exported to U.S. markets at a value of second.AndCanadiansoftwoodforest products was just one of a host ofTheCarneygovernmenthasapproximately C$4.5 billion. imports have attracted the most atten- Section 232 investigations that Trumpannounced C$50 million (US$36million)Theliquiditysupportandloan tion as they are closely tied to the USordered back in March which includedfor upskilling and reskilling, along withguaranteesbeingprovidedbythe construction and homebuilder sectors. key products such as autos, steel, alu- incomesupportformorethan6,000Carney government in this crisis situ-According to the analysis by theminum, and copperall of which areaffectedsoftwoodlumberworkers.ation are helpful, particularly to small commodityresearchcompanyFast- key Canadian exports to the US. So,DaveEarle,theBritishColumbiaand medium-sized companies facing markets, Canadian softwood importsit is understandable why Canada per- Trucking Associations president andhighercustomsbondcosts,says in 2024 to the US accounted for 12ceives these Section 232 investigationsCEO, says none of this will be easy.Kurt Niquidet, the B.C. Lumber Trade BBF (billion board feet) or a 24.1%as a direct threat to their export tradeWeprovideClassItruckdrivingCouncils president. But trade nego-shareoftheestimated49.80BBFwith the US. After all, when the copperinstruction to displaced forest work- tiationsmustprioritizebetteraccess USconsumption.Besidessoftwoodinquiry was concluded in July, a 50%ers,butwhenthebigemployersinto our primary U.S. market.lumber,CanadianimportsofOBStariff on imported copper was immedi- a small town are sawmills that haveIncreaseddomesticusewont (Oriented Strand Board better known)ately levied by the Trump administra- shut down, whats there to haul? fillthegap.Canadaonlyconsumes asengineeredwoodpanelin2024tion in what could be interpreted as aseven billion of the 20 billion board were 6.20 BSF (Billion Square Feet)prelude to the results from the forests eCtion232iMPliCations feet it produces annually. Even if we or a 28.9% share of the US consump- product investigation.Many people are further holdingincreased Canadian demand by 20%, tion of 21.50 BBF.(TRENDScontinued on page 43) their breath with the possibility of the(DISPUTEcontinued on page 44)L E G S E R I E X P AA C Y V C E N S I O NPoweringtheForestProductsTradethroughNorthwestFlorida Contact: Alex Kingfor 59 years.850.767.3220State-of-the-Art Forest Products Terminal Featuring a 260,000 SF [email protected] Trade Zone No. 65 on-dock warehouse and 920 FT berth.PORTPCFL.COMPhase Two Expansion Including a Second 200,000 SF warehouse ONE SEAPORT DRIVEand 600 FT berth extension coming in 2028. PANAMA CITY, FLORIDA 32401'