Is there any substance to the April 2017 softwood trade disputes Trump claims with Canada?

Alfonso Llanes, Political junkie

Written just now

There is substance to the dispute but not at the level of circus Trump-drama he loves to show off to make it a rabid dog effect. The Canada–U.S. softwood lumber dispute is one of the largest and most enduring trade disputes between the two nations.

Starting in 1982 the argument has had lasting effects still seen today. The crux of the disagreement is the claim that Canadian lumber industry is unfairly subsidized by federal and provincial governments. The argument is based on how lumber is priced in the two countries while most timber in Canada is owned by the provincial governments which charge a fee to milling companies per board-foot of wood while in the U.S. the price is set by bidding among the sawmill companies on the same measure of per board-foot. However, the US argues that the government of British Columbia, the major Canadian exporter of softwood lumber to the United States doesn’t charge enough fees therefore, it constitutes a subsidy to the Canadian producer.

In the meantime, The Globe and Mail report that Foreign Affairs Minister Chrystia Freeland, is firing back at Donald Trump’s anti-Canadian trade rhetoric arguing that “the U.S. is dependent on Canadian softwood because its own industry can’t meet its domestic demand.”

In a report by the Canadian Foreign Affairs Ministry, on 12 October 2016, a one-year moratorium on trade actions was agreed to since the expiration of the previous deal ended. The report continues, that negotiations were being conducted under a specified range, a mixed export tax and quota regime that would be implemented on imports of Canadian lumber. On Canada's part, the nation agreed to enforce regulations, such as in the form of taxes on lumber exports headed to the U.S. The provincial governments of Canada, specifically, were encouraged to make changes to their pricing systems. Such changes would allow for a non-subsidizing system.

Nonetheless, on April 25, 2017 the Trump administration announced plans to impose duties of up to 24% on most Canadian lumber, charging once again that lumber companies are subsidized by the government. The duties are on the five firms as reported by CNN: West Fraser Mills, Tolko Marketing and Sales, J.D. Irving, Canfor Corporation, and Resolute FP Canada. West Fraser Mills will pay the highest duty of 24%.

“The preliminary determination directs U.S. Customs and Border Protection to require cash deposits for the duties on all new imports as well as softwood products imported over the past 90 days. To remain in effect, however, the duties need to be finalized by Commerce and then confirmed by the U.S. International Trade Commission after an investigation that includes testimony from both sides.”