Softwood Lumber

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Softwood Lumber Agreement 1996

The 1996-2001 Canada-United States Softwood Lumber Agreement (SLA) which expired on March 31, 2001, provided Canadian softwood lumber exporters with guaranteed market access to the United States and a guarantee against U.S. trade action during the five-year lifetime of the agreement.

Under the Agreement, Canada was permitted the fee-free export to the U.S. of 14.7 billion board feet per year of lumber first manufactured in British Columbia, Alberta, Ontario and Quebec. Canada was required to collect fees when that limit was exceeded, using a tiered fee system. Softwood lumber exports to the United States originating from B.C., Alberta, Ontario and Quebec that exceeded 14.7 billion board feet a year were subject to a “Lower Fee Base” fee for the first 650 million board feet and an “Upper Fee Base” fee for greater quantities. Fee amounts, which were approximately US$50 and US$100 per thousand board feet respectively, were adjusted annually for inflation. In return for limiting fee-free exports to the United States, the United States made a commitment to dismiss any new petitions for trade action against Canada during the lifetime of the Agreement.

As stipulated in the SLA, Canada allocated export level allocations (i.e. quota) to eligible companies on an annual basis. Lumber from the other Canadian provinces and territories was exempt from the SLA and could enter the United States without permit.

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