This is the second in a series related to Forisk’s Q4 2016 forest industry analysis and timber price forecasts for the United States and Canada.
In October 2015, the Softwood Lumber Agreement (SLA) between the United States and Canada expired. Now in October 2016, a one-year freeze on tariffs that prevented the filing of any trade complaints expired. U.S. lumber producers want a cap on Canadian exports, while Canadian producers want to enact an agreement similar to the 2006 SLA. The previous agreement implemented an export tax when the benchmark lumber price in the U.S. fell below $355/MBF.