Tariffs against B.C. wood products are prohibitively high in Malaysia

Forest industry waits for Pacific trade deal

B.C. wood products are shut out of some Asian countries such as Malaysia, Vietnam and Brunei by high import tariffs

Wood products producers are encouraged by the Trudeau government’s decision to sign the Trans-Pacific Partnership, the first step to ratifying a sweeping agreement with Japan, Australia and other Asian countries.

International Trade Minister Christia Freeland said this week she will take the next “technical step,” allowing the TPP to be debated in the House of Commons. It’s the first signal the Liberals will continue the work started by the Conservative government, which warned against being left out as the U.S. and Mexico go ahead with the TPP.

“All in all we think this is a pretty good agreement,” said Paul Lansbergen, acting president of the Forest Products Association of Canada, in an interview from Vancouver.

“A lot of our industry is in rural Canada, and I think it’s important for the government to recognize the importance of the well-paying jobs that we provide,” he said. “And when our economy is having some rough times, particularly oil and gas, really the government should be thinking about how our economy is diversified.”

Lansbergen said the deal not only phases out tariffs against Canadian forest products, it has clear provisions to settle disputes, and rules around blocking imports due to concerns about insects or other contaminants.

Some of the TPP partners currently have few forest product imports from Canada because of “prohibitive” tariffs, he said. Vietnam applies tariffs of up to 31 per cent, Malaysia up to 40 per cent and Brunei up to 20 per cent, which would be phased out under TPP.

Japan, a long-time customer for B.C. lumber, has tariffs of up to 10 per cent on forestry and value-added products such as oriented strandboard and engineered wood.

Forest product exports have done well with the low Canadian dollar, with sales to the U.S. returning to historic levels after a collapse of the U.S. housing market in 2008.

Canada’s softwood lumber agreement with the U.S. expired last fall, but bilateral wood products trade is exempt from the TPP as it was left out of NAFTA.

 

Just Posted

New SD54 chair to deal with potential Houston school closure

The baton has been passed at Bulkley Valley School District 54. After… Continue reading

Smithers Gallery Association cancels Divas Friends Variety Show

The gallery says they can’t find anyone to book artists. Also, a look at arts 2018 funding requests.

VIDEOS and PHOTOS: 20th anniversary of the Delgamuukw/Gisday’wa court decision celebrated

Chiefs and elders from different houses spoke at the feast discussing their memories of the case.

No charges against Smithers RCMP officer for in-custody death

The Independent Investigations Office conducted an investigation into the actions of the officer.

VIDEO: Researchers rely on drones to survey aftermath of B.C. wildfires

UBC researchers are using aerial drones to study the historic 2017 wildfires in the province

REPLAY: B.C. this week in video

In case you missed it, here’s a look at replay-worthy highlights from across the province this week

B.C. wildfire evacuee admits to setting hotel room fire

A Williams Lake wildfire evacuee admitted to setting Kamloops hotel room on fire

Grizzly bear trophy hunting over in B.C.

NDP government says 2017 hunt was the last one

UPDATE: Grizzly bear trophy hunting over in B.C.

Now only Indigenous people can hunt bears for meat

Star Blue Jays announced for Vancouver ‘Winter Tour’ event in January

Toronto’s pro baseball team heads west for two-day event

UPDATE: ‘Multiple fatalities’ as Amtrak derails in Washington State

13 cars jumped the tracks as train made its first voyage between Seattle and Portland

Mental effects of wildfire still linger in Fort McMurray

‘Resilient, but tired:’ Mental effects of wildfire lingering in Fort McMurray

Climate change hits Winter Olympic preparation

AP Exclusive: Climate change hits Winter Olympic preparation

Calgary Flames thump Vancouver Canucks 6-1

Mark Giordano, Sam Bennett lead the way as Flames thump Canucks 6-1

Most Read