Some investigative journalism
More like analyzing journalism. I have been following the timber trade dispute between U.S. and Canada. Case has been in WTO and various media. There are lots of heated opinions concerning this issue. What’s this matter about anyway?
THE CASE HISTORY
U.S. claimed that Canada was exporting timber to U.S. with unhealthy low prices. This hurts U.S. lumber industry, as they can’t compete with Canadian timber prices. Because of heavy lumber industry lobbying, U.S. set a punitive trade tariffs on selected Canadian wood products.
Canada fought back, they took the matter to WTO and because WTO doesn’t like such monkey business as tariffs, WTO decided to give a little tat for US. US then lowered tariffs to acceptable levels, but still keeping them rather high. Canada is not happy though, because they have lot of wood, which they now have to export to distant Asia and transportation is costly. Canada is trying to get bigger corrective action with NAFTA, but U.S. is not budging.
PRESENT STATE OF THE TRADE DISPUTE
U.S. considers going with NAFTA demands and recommendations. This would leave U.S. lumber industry vulnerable for Canadian exports. However, the lobbying that started strong from lumber industry’s part has now gotten a new contender – home building industry. Tariffs are hoisting raw material prices and therefore affecting on house prices. Who has heavier hand here – lumber industry or house builders? House builders of course, so good riddance tariffs.
WHY CANADIAN LUMBER IS SO CHEAP?
Well that I will answer in my next post, but I can say that the answer is rather surprising. For now, let’s just say that global warming is behind it all. Don’t you think it is rather ironic that a phenomenon that has not been widely accepted in U.S. is actually having quite concrete effects?
