3Q Cost Report - U.S. and Canada Settle Trade Dispute
The U.S. and Canada finally signed a deal on Sept. 12 that would end a dispute over Canadian exports of softwood lumber that has dragged on for over two decades. The deal, which has been in the works since last May, still needs to be approved by the Canadian Parliament and Canadian lumber firms have to agree to drop all litigation. Both steps are widely expected to happen.
While the deal offers something for both U.S. and Canadian producers it offers very little to contractors. With both price and implicit quota triggers, the new accord is designed to prop up prices. Analysts fear that it will lead to greater volatility in lumber pricing. The National Association of Home Builders, Washington, D.C., says the agreement will “destabilize the U.S. lumber market.”