NEWS RELEASES
EGGLETON WELCOMES SETTLEMENT ON LUMBER
February 16, 1996 No. 23
EGGLETON WELCOMES SETTLEMENT ON LUMBER
Minister for International Trade Art Eggleton today announced that negotiations
involving federal and provincial representatives, as well as the Canadian lumber
industry, have successfully concluded the elements of a Canada-United States
agreement related to trade in softwood lumber. The five-year agreement includes a
U.S. commitment not to initiate any trade actions affecting Canadian exports of
softwood lumber.
"The security of market access provided in this agreement is of critical
importance to Canadian exporters," said Mr. Eggleton. "We have worked closely
with the provincial governments and lumber industry to negotiate a deal that is
acceptable to all parties."
The agreement incorporates commitments made by each of the major lumber-producing
provinces (British Columbia, Quebec, Ontario and Alberta). Minister Eggleton
noted that the specific approaches preferred by each of the provinces have been
accommodated within an overall nation-wide agreement. The British Columbia
commitments, involving a fee if exports go beyond recent levels, would be
implemented with the assistance of the federal government. The Quebec, Alberta
and Ontario commitments incorporate recent changes in provincial forestry
practices, such as adjustments to stumpage fees paid to the provincial governments
for the right to harvest timber. These provinces have also agreed to consult with
the U.S. on further measures in the event of export increases in their respective
current levels of softwood lumber exports to the U.S. As in the past, the U.S.
has acknowledged that the forestry practices and the lumber exports of the
Maritime Provinces are not a cause of concern to the U.S. industry.
Canadian softwood lumber exports to the United States reached record levels in
1995 of over $8 billion. The value of exports has grown by more than 40 per cent
since 1990, increasing from 26 per cent of the U.S. market to 36 per cent in 1995.
The Canada-U.S. agreement will ensure continued market access and eliminate the
threat of further U.S. trade action in this sector for five years. Canadian
softwood lumber has been subject, over the past 15 years, to three U.S.
countervailing duty investigations, involving major costs and uncertainties for
Canadian exporters.
Mr. Eggleton noted the key role of the provinces and industry in achieving an
acceptable agreement. "This has been a complex negotiation involving both federal
and provincial responsibilities," said the Minister. "I am pleased that both
levels of government have worked co-operatively to put together the best agreement
possible in the interests of the Canadian lumber industry."
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For further information, media representatives may contact:
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
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