Does Your Company Support a New SLA? Sign Our Petition
Based on two recent articles published by SBC Magazine, “Possible 'Handshake Agreement'' Reached in U.S.-Canada Lumber Dispute,” and “What is Happening with the 'Handshake SLA'? Who May Stop It?,” we have been asked to start a petition that lists key stakeholders who use lumber and are in support of a softwood lumber agreement (SLA) that contained the provisions outlined in those articles (and included below).
If your company or organization would like to vocalize their support of an SLA containing these concepts, let us know. If we receive significant response, we will publish an updated list to show the U.S. Department of Commerce, and others involved in the current negotiations, the level of support in the marketplace for what appears to be a fair and proactive agreement.
- Structural Building Components Association (SBCA)
Softwood Lumber Agreement Provisions
1. The agreement would last for ten years.
2. The agreement will contain negotiated restriction of Canadian softwood lumber shipments into the US market. Initially, this will be along the lines of an import quota that will limit Canadian softwood lumber market share in the U.S. to 31 percent over the first six months from a date agreed upon.
For the next 12 months after the first 6 months, the market share cap would be lowered to 29 percent.
For the remainder of the agreement, the market share cap would be set at 28 percent.
3. The Canadian government would administer the export caps and as long as their market share remains below the cap there will not be duties, taxes or export charges assessed on Canadian lumber. Punitive action for exceeding the prescribed market share caps has yet to be defined.
4. The Canadian government would have the ability to adjust exports from various provinces to remain under the market share cap. For example, as lumber exports out of B.C. decline, exports from Quebec could increase. It’s important to note that exports coming out of the Atlantic Provinces will be exempt and will not contribute to the market share cap. When lumber milled in Canada comes from logs purchased in the US, the resulting lumber will also be exempt.
5. The market share cap will be computed over a one-year period. This would allow the Canadian government the flexibility to export a quantity of lumber exceeding the cap over a period of a few weeks or months, as long as total exports did not exceed the cap over the full year.
6. The cost of lumber will also be a factor when it comes to the export cap. It has been suggested that the Random Lengths composite framing lumber index be used as a trigger to either increase Canada’s allowable market share cap or even eliminate the cap while the cost is above a predetermined level (somewhere between $380/MBF and $390/MBF, for example).
7. The 2006 softwood lumber agreement will serve as the foundation for all calculated triggers and punitive actions.