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Essay on Softwood Lumber Dispute - Canada vs USA

 

            In society today, trade plays an important role in the progress of any countries .
             "Trade is absolutely essential in Canada's economy .
             in order to maintain the lifestyle's currently enjoyed by Canadians."(Compton's). .
             "Canada is also largely dependent on exports which is an international transaction in .
             which a foreign currency is converted into a domestic one in order to purchase a domestic .
             good."(Compton's). Canada's biggest trading partner is USA, they both hold the biggest .
             trading relationship in the world, which generates more than $1 billion (US) a day in two-.
             way trade. One of Canada's largest export to the United States is Softwood Lumber with .
             over 18.6 billion board feet of lumber shipped in 2001 alone. The problem though .
             through all this is that Canada has been taken advantage of by USA through this .
             softwood lumber dispute.
             Trade amongst Canada and the USA has become a common action to these two .
             countries. They became each other's largest trading partners at the turn of the 20th .
             century. But with successful trade came many disputes that eventually hurt the trade .
             relation amongst these two countries. Today Canada and the USA face there biggest .
             conflict in the Softwood Lumber Dispute. "The history of Canada's softwood lumber .
             disputes with the US is a long one. The first skirmishes date back to disagreements .
             between New Brunswick and Maine in the 1820's."(Miner, 23). U.S. and Canadian .
             citizens are fortunate to benefit from one of the most positive trading relationships in the .
             world under the North American Free Trade Agreement (NAFTA). However, there is a .
             major commodity, softwood lumber, which is excluded from the free trade benefits of .
             NAFTA and subject to trade quotas. On April 1, 1996 limitations were placed on the .
             amount of lumber permitted to enter the United States from Canada. The limitations came .
             from a joint agreement called the U.S.-Canada Softwood Lumber Agreement (SLA), .
             which was signed in 1996 and eventually expired in March, 2001.


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