B.C. premier says softwood lumber accord could build "momentum" for U.S. trade deals

Resolving the softwood lumber dispute could create "momentum" for a larger trade agreement between Canada and the United States, British Columbia Premier David Eby says.

Eby said Wednesday in Victoria that he and several other premiers pressed that point during a virtual meeting with Prime Minister Mark Carney after his visit with U.S. President Donald Trump this week. 

He said softwood lumber could present an opportunity to "lead the way in terms of opening the door again to concrete and meaningful discussions that benefit both Americans with cheaper building materials … as well as growth in our economy." 

The premier said it doesn't matter if Canada and the United States resolves the softwood lumber dispute before dealing with the overall trade and tariff issue.

"This is one of those areas where it feels like we can create some momentum for a larger agreement," Eby said. 

Council of Forest Industries chief economist Kurt Niquidet said he agrees with Eby. 

"We hear a lot about autos and steel and aluminum, but I think Premier Eby has been doing a good job to raise the profile of softwood lumber," Niquidet said. "It's not just a British Columbia issue, it's a national issue."

Canada and the United States have been without a softwood lumber deal since 2015 and B.C. softwood lumber exporters pay duties of 14.4 per cent, which are expected to jump to 34.5 per cent in the fall. 

The industry also faces possible tariffs on top of existing duties after Trump ordered an investigation into the national security implications of lumber imports. 

Eby has repeatedly questioned the purpose of the investigation because the province's softwood lumber industry "poses no threat to Americans, except for more affordable housing," he said.

The United States has collected $10 billion in duties so far, but that money remains legally locked up as Canada is challenging the tariffs as unjustified under the Canada-United States-Mexico Agreement. 

Previous softwood agreements have divided up the money collected, and Eby said both the American government and Canadian producers could benefit from those funds, which he said is an "incentive" on both sides of the border to "get a deal." 

Niquidet with the Council of Forest Industries said American companies won't be able to access a share of the collected money unless their government settles with the Canadian government. 

He could not say how long it might take to negotiate a deal, but "if there is a fair deal on the table, it could go pretty quickly."    

B.C.'s forestry industry is the one of province's most important exports, with Niquidet's industry group pegging its contribution to provincial GDP at $17.4 billion in 2023. 

But the sector has faced multiple challenges over the years including declining harvests, and groups such as the Business Council of British Columbia have warned of catastrophic effects, especially in rural and northern B.C., if the United States follows through on threats to raise duties and impose tariffs. 

Conservative Party of B.C. Leader John Rustad said Wednesday that a carbon tax on U.S. thermal coal shipped through the Port of Vancouver could be used as leverage to recover the collected duties. 

"We want to see that money returned at a time when (forest companies) need to see those investments," he said. 

He said the softwood lumber dispute affects B.C. the most, and he was "disappointed" that it hasn't become a top priority for both the provincial and federal governments. 

Eby said the premiers also discussed the threats of U.S. tariffs on the film industry and bail reform during their meeting with Carney since he was elected. 

Picture Courtesy: CANADIAN PRESS/Darryl Dyck