Forests Minister Ravi Parmar said that if lumber quotas are what is needed to end the decades-old softwood lumber dispute with the United States, then so be it.
"It just may be able to address this issue once and for all," Parmar told Black Press Media on Wednesday afternoon (July 16).
Premier David Eby floated the possibility in an interview with Bloomberg earlier in the week. Then on Wednesday, Prime Minister Mark Carney confirmed to reporters in Hamilton, Ont. that quotas could be in the cards.
"There is normally some element of managed trade that comes out of any agreement," he said, adding that could mean quotas or other trade factors. Carney said he is in "close contact" with Eby on the issue.
For many years, the United States has accused Canadian producers of "dumping" lumber on the U.S. market at below cost, harming American producers. As a result, the U.S. has been ratcheting up duties on Canadian lumber, first raising rates from 6.74 per cent to 14.38 per cent in 2024, then announcing in April that another hike to 34.45 per cent is coming. Trump has threatened tariffs on top of this.
Previous agreements have involved the U.S. imposing quotas on Canadian lumber. A B.C. government argues these measures have only served to constrain lumber supply in the U.S. and led to demand being met by third countries in Europe and South America, with the added shipping costs being passed on to U.S. consumers.
Parmar acknowledged B.C. lumber companies might have "differing views" on quotas, but he said it is just one tool to get a long-term deal in place and reduce uncertainty.
Kurt Niquidet, president of BC Lumber Trade Council, provided Black Press Media with a statement advocating for a solution to the dispute. He did not rule out quotas.
"Resolving this long-standing dispute is essential to protecting jobs, supporting communities, and ensuring a stable, competitive future for our forest sector,鈥� Niquidet said.
Finding a solution could be especially important for B.C. lumber should the U.S. economy enter a recession, or if President Donald Trump opens up his country's public forests to logging.
Meanwhile, the uncertainty alone has already depressed demand, Parmar said.
"I was chatting with one of the largest producers of softwood in British Columbia just a few weeks ago, and they were telling me that their sales in Texas are down double digits," he said.
Regardless of whether Canada puts quotas on the table as part of negotiations, Parmar said Trump could balk.
"The president seems to really like tariffs," Parmar said. "And so he may say, bugger off."
