Nailing The Homeowner: The Economic Impact Of Trade Protection Of The Softwood Lumber Industry

Overview: Even though Canada is the United States’ largest trading partner and most goods flow freely across the border, one U.S. industry, softwood lumber, continues to lobby successfully for the imposition of trade barriers against our neighbor to the north. This article deals discussing the recent manifestation of Softwood Lumber Agreement, which was signed in 1996. The SLA imposes special fees on any softwood lumber imports in excess of 14.7 billion board feet. The SLA is set to expire in April 2001, and the U.S. and Canadian governments are considering options that might replace the SLA. The best policy course is to simply let the SLA expire and not impose any new barriers. Protectionist trade barriers in the softwood lumber industry impose great costs on businesses and consumers here in the United States in order to enrich a few lumber producers. Advocates of protectionism claim that trade barriers are necessary to offset unfair subsidies enjoyed by Canadian lumber producers, but such claims do not withstand scrutiny. Neither do arguments that free trade in lumber would harm the environment. It is time for the United States to stop lining the pockets of a few producers here at the expense of U.S. homebuilders and families who dream of owning their own homes.

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Format: PDF | Size: 142KB | Date: Jul 2000 | Pages: 16