What Is the Softwood Dispute About?
The softwood lumber dispute between Canada and the United States stems from the way the two countries organize their lumber industries. In the United States, most timberlands are privately owned and managed. American forestry companies often compete for these lands through public auctions. In Canada, most timberlands are “Crown” lands and are owned and managed by the Government of Canada. Canadian forestry companies are charged a “stumpage fee” by provincial governments to harvest trees. For many years forestry companies in America have argued that the organization of the Canadian lumber industry subsidizes forestry companies in Canada. Where as companies in the US have to pay for the management of the forests themselves, companies in Canada simply have to pay stumpage fees. With lower costs, Canadian companies are able to sell their products for less than their American counterparts. This results in an unfair competitive advantage. However, there is not much evidence to support this c
