NAHB reiterates call for long-term solution over Canadian softwood lumber imports as tariff decision delayed

ConDig (24-Apr-17).  Leaders of the US housing industry have renewed calls for a long-term solution over US softwood lumber imports from Canada after a decision by the Department of Commerce (DOC) to postpone its preliminary ruling on antidumping duties from May 4 to June 23.

National Association of Home Builders (NAHB) chairman Granger MacDonald said that it is in the best interests of both countries to reach a long-term deal to end the ongoing trade dispute in order for domestic lumber consumers to have “access to a stable supply of lumber at competitive prices”.

Moreover, he called on US policymakers to address the issue in light of reports that Canada is now looking to ship to China in a bid to boost lumber exports as an alternative to the US.

“More than one-third of the lumber used in the US last year came from exports because the US does not produce enough lumber to meet the nation’s needs. Home builders need a consistent, reasonably priced supply of lumber to keep housing affordable for hard-working American families,” said MacDonald.

“Policymakers have a number of options at their disposal to make up for the current domestic shortfall. These include increasing domestic harvests, boosting exports from other nations and limiting US exports.”

A decision by the DOC to extend its preliminary determination comes as it said it requires sufficient time to obtain and review all relevant information from the parties involved in the case.

The trade investigation follows US producer claims that Canadian softwood lumber is subsidized and sold in the US at below-market rates.

A softwood trade agreement between the US and Canada expired in October 2015, with negotiations ending in a stalemate towards the end of last year following demands by the US to reduce Canada’s market share to 22% over a four-year period.

The uncertainty surrounding the trade dispute has led to a rise in lumber prices and US homebuilders have raised concerns over a hike in building costs. 

Officials from the NAHB have called for increasing exports from other countries like Chile and last year held discussions with public and private interests in the South American country over the possibility of boosting the country’s exports of softwood and other lumber products to the US.