Did you know the Candian government is letting their timber industry cut down trees on state lands for free? That is a very short sighted move. It cannot be sustained at this rate forever and amounts to 'dumping'.
In other words, the problem in this specific case is not a lack of competitiveness on the part of the U.S. timber industry, instead the problem is they are fighting what amounts to a state subsidy from the Canadians.
That situation is one of the few times special tariffs are justified. W made a good call on this one.
We agree.
Dubya done good...
The forested land often belongs to the 'crown' but the forestry company pays steep license fees to the 'crown' ie. government. It amounts to the same cost of doing business as if a person owned the land and a company leases it. In Canada the provincial government collects the 'lease' money as income to its treasury. In other words, the people, collectively own the land. However, when the timber is sold to American home builders for a lower price than an American company would sell it, there are many factors for the price discrepancy. It is not that it is cut from FREE land.
Oh, are you wrong on this one, Canadian producers are paying what is called a stumpage fee on every log cut down, this fee was raised the last time we had a tiff with the US.
It does look like dumping, but as for being sustainable, Canada is almost nothing but vacant land, much of it forested. So they could cut for what may as well be forever and not run out of trees to cut. If they plant a few as they go, they really could go on forever.
The Canadians mearly have lower stumpage taxes than we do, they are not cutting it down for free, not to mention as many goofy environmental laws that have shut down logging in the pacific northwest.
This is just like the steel industry union dorks, they aren't competitive and thus as being slaughtered by the competition
George H. seriously needs to pay a visit to Washington and kick George W. ass
The providences are also paying the lumber companies up to a 30% cash payment if they cut the lumber in their providence !
The providences are also paying the lumber companies up to a 30% cash payment as a refund if they cut the lumber in their providence !
The cost of the trees is ZERO to the providences because they own the land so it equals the lumber company paying 70% of the actual cost!
Thats just too damn bad. If Canada wants to help me pay for my new deck this summer, I say more power to them. I'll even invite the Prime Minister over for the summer's first BBQ.
In case you haven't noticed, Einstein, trees are a renewable resource.