Nova Scotia Not to Blame for U.S. Softwood Lumber Duties

NOTE: The following is an op-ed from Premier Tim Houston.

This is a difficult time for the Canadian softwood lumber industry. The recent decision by the United States to increase softwood lumber duties to nearly 15 per cent is indeed a blow to Canada, and the implications are severe.

On this point I agree with William Pellerin’s opinion piece in the September 3 edition of the Globe and Mail, “Blame Nova Scotia for billions Canada will pay in softwood lumber duties.” His conclusion that Nova Scotia is to blame, however, is false and demonstrates a complete misunderstanding of the issue. Unfortunately, he is now repeating these erroneous comments in other media.

Nova Scotia is not responsible for the U.S. increasing Canadian softwood lumber duties.

The duty increases are directly impacted by changes in dumping and subsidy calculations for lumber production in British Columbia. These have nothing to do with Nova Scotia because Nova Scotia prices are not used by the United States as a benchmark for British Columbia lumber producers.

It is inaccurate to suggest that Nova Scotia has been supplying information so the U.S. can determine the level of alleged provincial subsidies in other provinces, leading to high duties on Canadian softwood lumber. Nova Scotia participates in the proceedings only to provide facts when requested and when it is legally required to do so. Withholding information would open Nova Scotia, and the rest of Canada, to potential adverse duty rates for non-compliance.

Nova Scotia and our forestry sector have a right to participate in these proceedings like every other province in the country. Our lumber mills operate in a market dominated by private land stumpage transactions and pay some of the highest stumpage prices within Canada as a result. Nova Scotia advocated to be exempt from U.S. duties because our stumpage market is based predominantly on harvesting from private land versus Crown land.

Nova Scotia has steadfastly defended our forestry industry’s U.S. market access, which dates back to the 1980s. What is at stake in Nova Scotia is a forestry sector that generated $1.8 billion in economic impact and 6,400 full-time jobs in 2022.

To suggest we have some quid pro quo with the U.S. government or industry is disturbing and wrong. Every province advocated for their interests when the U.S. investigation was originally launched back in 2016. We work closely with Global Affairs Canada on the softwood lumber issue, as it represents Canada’s position on behalf of all provinces.

We will continue to defend our industry’s interests in accessing the U.S. market. We do not need to have this important issue sidetracked by misinformation.