NAFTA- Softwood Lumber

S., 62 million of those hectares are "protected from logging because of court challenges brought by environmental groups-. [Pg 25 News in Review] The 5% of Crown land in the States that can be legally used for timbering purposes is so miniscule that it consequently makes it pointless for the U.S. to implement its own stumpage fee.
             Furthermore Canada has been accused of "exporting their unemployment to the U.S."", [pg 22 News in Review] this stems from the belief by some that Canada uses its softwood lumber industry as an unemployment strategy. The reduced cost to produce softwood lumber in Canada allows for continued production when demand is low because it can be sold in the U.S. below the American cost of production guaranteeing a need for workers. .
             While it is true that the Canadian government has some control over the cost of logging through the stumpage fee, it is not grounds to accuse the country of subsidizing, nor does the policy contravene any part of the NAFTA. The dispute between Canada and the U.S. lies in national policy. At the turn of the 20th century Canada and the United States went down very different routes regarding what they did with their forests. The U.S. sold much of its forests for meagre amounts in an effort to encourage private commerce, while Canada "retained public ownership as Crown land of 95% of its forests, ensuring control over their future use."" [Pg 25 News in Review] This decision from a century ago is not the only cause of Canada's upper hand in softwood lumber, other reasons include the following: While Canada practices controlled logging and reforestation, the "U.S. land can be cleared and sold for development, or left barren because producers don't want to eat into their profits with replanting."" [25 News in Review] In fact, commercial forests are growing, making it possible for Canada to exceed previous production if so desired where as the United States' Southern Lumber producing states (who supply 2/3 of the American share of softwood lumber) have over cut their forest 20% - 50% in modern times  .