U.S. Home Builders Seek New Lumber Sources In Russia
October 11, 2006 - Addressing the International Forestry Forum here, U.S. home builders offered to share American home building technology with their Russian hosts and encouraged them to boost exports of softwood lumber and other wood products to America.
(snip)
However, a new softwood lumber accord between the U.S. and Canada that is scheduled to take effect on Nov. 1 will create a complex system of border taxes and quotas that will artificially raise lumber prices during periods of normal or slow demand, and thereby harm housing affordability. The pact is also expected to cause new uncertainties for U.S. builders over the availability and price of Canadian lumber.
“Access to a reliable, steady supply of lumber is the lifeline for any American home builder,” said Wilson, who provided conference participants with an overview of light-frame wood construction techniques in the U.S. housing industry. “We believe that lumber trade barriers impose an unreasonable burden on U.S. home buyers and on the industries that depend on adequate, affordable supplies of lumber to provide the housing and other vital goods and services America needs.”
While Howard noted that the new trade pact is a misfortune for Canada, he said it represents an opportunity for Russia and the rest of Europe to increase lumber exports to the U.S. over the long term.
“Today, the U.S. is overly reliant on Canadian imports to meet its lumber needs,” said Howard. “We are reaching out to you to correct this problem and we are looking to Russia to add equilibrium to our market for this essential commodity for the home building industry."
http://www.libertymatters.org/newsservice/2006/faxback/3074_Lumber.htm
Interesting post.
While these Canadian subsidies may have passed muster, it doesn't mean that US customers have to buy from Canadian suppliers. It is a world market. And the populists, protectionists, isolationists, nativists, conspiracists are opposed to a world market.
As usual.