B.C. Forests MInister Doug Donaldson (right side centre) meets with housing ministry officials in Jiangsu province, China, Nov. 15, 2017. Jiangsu, population 79 million, is China’s pilot project for wood and hybrid wood construction. (B.C. government photo)

B.C. VIEWS: China a better partner for forest industry than U.S.

B.C. is slowly winning the softwood lumber war

B.C. Forests Minister Doug Donaldson is back from his first wood industry trade mission to China and Japan, an annual journey I was fortunate to go on last year.

China especially is an eye-opening experience, and depending on the smog, an eye-irritating experience as well. The sheer scale of urban development around cities like Shanghai and Nanjing is striking – they don’t build a high-rise, they build eight or 10 or 12 at a time.

Nanjing is the commercial centre of Jiangsu province, where the Chinese central government has ordered a pilot project to phase in wood and engineered wood, starting with roof trusses and pre-fabricated infill walls for concrete buildings. They’re working with B.C.-developed wood construction because “it’s energy efficient, it’s green, it’s light, it’s fast,” says Rick Jeffery, chair of the national industry group Canada Wood and a veteran of Asia trade.

This is important in a vast country that is not only choked with pollution, it’s running low on limestone, a key component of concrete. Based on 2016 rates of consumption, China is using as much concrete in two years as the U.S. would in a century, and that’s with their growth slowed from its peak a few years ago.

One of the pictures sent back by B.C. government staff shows Donaldson attending a meeting of the Ministry of Housing and Urban-Rural Development (MOHURD) for Jiangsu, with dozens of people crowded around a long boardroom table. The province’s population is approaching 79 million.

In a phone call from the Tokyo stop last week, Donaldson said once the government decides on an action, “things happen quickly in China.” The national MOHURD directs the provinces and essentially controls construction.

Donaldson noted that President Xi Jinping, in his recent sweeping address to the 19th Congress of the Communist Party of China, emphasized clean, pre-fabricated building systems.

Things don’t happen quickly in wood industry talks with the U.S., where the central government isn’t ruled by dictators but by its lumber industry lobby. Using the same subsidy accusations that have failed repeatedly in international trade rulings, the U.S. has forced Canadian softwood producers to fork over $500 million in countervailing and anti-dumping duties since last spring alone.

This American shakedown of Canada has been going on for decades. In the “managed trade” arrangement that ran from 2006 to 2015, Canadian lumber mills paid punitive duties averaging about 11 per cent. Now, after a preliminary ruling was generously scaled back by the U.S. Department of Commerce, our producers are paying about 20 per cent, directly into the pockets of U.S. lumber barons.

B.C. Council of Forest Industries CEO Susan Yurkovich has repeatedly pointed out that this U.S. protectionism doesn’t work. It can’t work, because the U.S. doesn’t produce enough lumber to meet its own construction demand. If it blocks lumber from B.C., which represents half of Canada’s exports south, it will have to buy lumber from overseas.

The real purpose of this U.S. industry trade bullying is to push up the price of their products, and that is working extremely well. U.S. lumber and structural panel prices hit a near record last week.

The good news for B.C. is that the price is high enough that sales to the U.S. are easily covering the cost of duties. That’s being passed on to U.S. builders and homeowners.

One of these days, Trump and his team of trade geniuses may figure this out and begin to consider free trade in lumber. Until then, Canada and B.C. are well advised to continue working on the Asia market.

Tom Fletcher is B.C. legislature reporter and columnist for Black Press. Email: tfletcher@blackpress.ca


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureforestry

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Interior Health reports three additional COVID-19 cases in region

The number of cases in the region since the beginning of the pandemic are now at 492

Trail Kiwanians wrap up $10,000 hospital donation

The new KBRH emergency department opened its doors a few weeks ago

LeRoi Foundation donates to hospital in Trail

$5,000 comes to KBRH via Community Foundations Canada and ECSF

Trail market goes garlic

The event goes Saturday in downtown Trail from 10 a.m. to 2 p.m.

Kootenay teachers’ union going to labour relations board over COVID-19 related work conditions

Union issues open letter to premier, education minister, health minister and Dr. Bonnie Henry.

3 new deaths due to COVID-19 in B.C., 139 new cases

B.C. confirms 40 ‘historic cases,’ as well

Supreme Court Justice Ruth Bader Ginsburg dies at 87

The court’s second female justice, died Friday at her home in Washington

Emaciated grizzly found dead on central B.C. coast as low salmon count sparks concern

Grizzly was found on Gwa’sala-‘Nakwaxda’xw territory in Smith Inlet, 60K north of Port Hardy

VIDEO: B.C. to launch mouth-rinse COVID-19 test for kids

Test involves swishing and gargling saline in mouth and no deep-nasal swab

Young Canadians have curtailed vaping during pandemic, survey finds

The survey funded by Heart & Stroke also found the decrease in vaping frequency is most notable in British Columbia and Ontario

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

B.C. teachers file Labour Relations Board application over COVID-19 classroom concerns

The application comes as B.C.’s second week of the new school year comes to a close

CHARTS: Beyond Metro Vancouver, COVID-19 cases in B.C. haven’t increased much recently

COVID-19 case counts outside of Metro Vancouver have been level since July

70-year-old punched in the head in dispute over disability parking space in Nanaimo

Senior’s turban knocked off in incident at mall parking lot

Most Read