Softwood Lumber

• Spruce-Pine-Fir (SPF) dimensional lumber
• Western red cedar
• Douglas fir structural timber
• Hemlock lumber
• Wood chips and residuals

1. 1

   Continue WTO and CUSMA dispute resolution proceedings on softwood lumber duties

2. 2

   Diversify into mass timber products (CLT, glulam) that command premium pricing

3. 3

   Develop Asian export markets for Canadian species not facing US trade barriers

4. 4

   Invest in second-growth forest management to secure long-term fibre supply

5. 5

   Pursue domestic building code changes to increase wood construction market share

Softwood lumber is explicitly excluded from CUSMA duty-free treatment due to the intractable bilateral dispute over Canadian provincial stumpage pricing. Combined countervailing and anti-dumping duties averaging 21.5% apply to most Canadian softwood lumber exporters. The dispute has persisted through NAFTA and CUSMA without resolution, making it the longest-running Canada-US trade irritant.

British Columbia's annual allowable cut has declined by 30% due to mountain pine beetle devastation and wildfire impacts. Log supply constraints are concentrating production in fewer, larger facilities with corresponding concentration risk. Northern BC and Quebec are emerging as alternative supply regions, but infrastructure limitations constrain development.

Canadian lumber competes with US Pacific Northwest and Southern Yellow Pine producers who do not face countervailing duties. European lumber imports into the US eastern seaboard further pressure Canadian market share. Canadian producers maintain competitiveness through scale, efficiency, and the weaker Canadian dollar despite the duty burden.