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For the last 25 years, the U.S. government has levied punitive duties on Canadian softwood imported into this country, alleging the pine tree products are “dumped” on the American market, driving prices too low.
Current “anti-dumping” duties are 27% of value.
The question is?Who gets hurt? Is it not American new home owners, and those who must rebuild after the devastating hurricanes, and those who must rent at artificially inflated prices? And who gets helped? Is it not big U.S. lumber, which has lobbied long and hard to keep the import tax on Canadian lumber in place?
Most Canadian forests are government owned. They charge their lumber cutters a fee for each tree cut, determined by current market conditions. The U.S. claims the lumber is in essence “sold” by the Canadian government at prices which allow Canadian companies to undercut prices by big U.S. outfits.
Lumber, like oil, is a commodity that sells on the free market at whatever price the market is willing to pay. The 27% duty on Canadian lumber keeps the price of wood products artificially high. With billions in hurricane damage, and the boom in new housing construction, the result of the U.S. policy jacks up prices to American consumers, witnessed by the recent 25% spike in lumber.
As homeowners rebuild after the hurricanes, why saddle them with higher lumber costs, especially when so much of the damage to homes was uninsured? Also, higher home prices are forcing more lower and middle income Americans away from home ownership, lumber being a big component of new home costs.
The Apostle Paul wrote, “Do not merely look out for your own personal interests, but also for the interests of others” (Philippians 2:4 NASB). Now is the time for the U.S. government to look after the interests of its people, not just Big Lumber.
The dispute panel at NAFTA recently ruled the U.S. policy violates the terms of the free trade agreement, so why not just let the tax on Canadian lumber die?
Steve Marr is the former CEO of the fourth largest import-export firm in the U.S., a company which facilitated international trade for many of the largest companies in America. Currently, Steve consults with with businesses and ministries utilizing ancient Biblical principles for success in today’s marketplace. Click here to contact Steve, or visit his website at www.businessproverbs.com.
