B.C. Forests MInister Doug Donaldson (right side centre) meets with housing ministry officials in Jiangsu province, China, Nov. 15, 2017. Jiangsu, population 79 million, is China’s pilot project for wood and hybrid wood construction. (B.C. government photo)

B.C. Forests MInister Doug Donaldson (right side centre) meets with housing ministry officials in Jiangsu province, China, Nov. 15, 2017. Jiangsu, population 79 million, is China’s pilot project for wood and hybrid wood construction. (B.C. government photo)

B.C. VIEWS: China a better partner for forest industry than U.S.

B.C. is slowly winning the softwood lumber war

B.C. Forests Minister Doug Donaldson is back from his first wood industry trade mission to China and Japan, an annual journey I was fortunate to go on last year.

China especially is an eye-opening experience, and depending on the smog, an eye-irritating experience as well. The sheer scale of urban development around cities like Shanghai and Nanjing is striking – they don’t build a high-rise, they build eight or 10 or 12 at a time.

Nanjing is the commercial centre of Jiangsu province, where the Chinese central government has ordered a pilot project to phase in wood and engineered wood, starting with roof trusses and pre-fabricated infill walls for concrete buildings. They’re working with B.C.-developed wood construction because “it’s energy efficient, it’s green, it’s light, it’s fast,” says Rick Jeffery, chair of the national industry group Canada Wood and a veteran of Asia trade.

This is important in a vast country that is not only choked with pollution, it’s running low on limestone, a key component of concrete. Based on 2016 rates of consumption, China is using as much concrete in two years as the U.S. would in a century, and that’s with their growth slowed from its peak a few years ago.

One of the pictures sent back by B.C. government staff shows Donaldson attending a meeting of the Ministry of Housing and Urban-Rural Development (MOHURD) for Jiangsu, with dozens of people crowded around a long boardroom table. The province’s population is approaching 79 million.

In a phone call from the Tokyo stop last week, Donaldson said once the government decides on an action, “things happen quickly in China.” The national MOHURD directs the provinces and essentially controls construction.

Donaldson noted that President Xi Jinping, in his recent sweeping address to the 19th Congress of the Communist Party of China, emphasized clean, pre-fabricated building systems.

Things don’t happen quickly in wood industry talks with the U.S., where the central government isn’t ruled by dictators but by its lumber industry lobby. Using the same subsidy accusations that have failed repeatedly in international trade rulings, the U.S. has forced Canadian softwood producers to fork over $500 million in countervailing and anti-dumping duties since last spring alone.

This American shakedown of Canada has been going on for decades. In the “managed trade” arrangement that ran from 2006 to 2015, Canadian lumber mills paid punitive duties averaging about 11 per cent. Now, after a preliminary ruling was generously scaled back by the U.S. Department of Commerce, our producers are paying about 20 per cent, directly into the pockets of U.S. lumber barons.

B.C. Council of Forest Industries CEO Susan Yurkovich has repeatedly pointed out that this U.S. protectionism doesn’t work. It can’t work, because the U.S. doesn’t produce enough lumber to meet its own construction demand. If it blocks lumber from B.C., which represents half of Canada’s exports south, it will have to buy lumber from overseas.

The real purpose of this U.S. industry trade bullying is to push up the price of their products, and that is working extremely well. U.S. lumber and structural panel prices hit a near record last week.

The good news for B.C. is that the price is high enough that sales to the U.S. are easily covering the cost of duties. That’s being passed on to U.S. builders and homeowners.

One of these days, Trump and his team of trade geniuses may figure this out and begin to consider free trade in lumber. Until then, Canada and B.C. are well advised to continue working on the Asia market.

Tom Fletcher is B.C. legislature reporter and columnist for Black Press. Email: tfletcher@blackpress.ca


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureforestry

Just Posted

Residents line up outside the Vernon Recreation Complex for their COVID-19 vaccine Saturday, June 5. (Jennifer Smith - Morning Star)
No appointments necessary for first dose COVID-19 vaccine: Interior Health

People can just show up at clinics, register on the spot and get the shot

(TNRD Library)
Let the mystery of the Summer Reading Club begin

Are you ready to ‘Crack the Case’ at the Barriere Library?

(Metro Creative photo)
Gardeners of all ages invited to enter 2021 NT Fall Fair contests

The North Thompson Fall Fair Drive Thru scheduled for Saturday, Sept. 4,… Continue reading

Milsom Lodge was built in the East Barriere Valley when the Milsom brothers purchased two parcels of land in 1911, DL 2323 and DL2324. (Milsom’s photo)
The Milsom Lodge: The mansion, the ballroom, the history

“At the turn of the century, when so many families were leaving… Continue reading

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Montreal Canadiens goaltender Carey Price (31) is scored on by Vegas Golden Knights defenseman Alec Martinez, not pictured, during the second period in Game 1 of an NHL hockey Stanley Cup semifinal playoff series Monday, June 14, 2021, in Las Vegas. (AP Photo/John Locher)
Habs fall 4-1 to Vegas Golden Knights in Game 1 of NHL semifinal series

Match was Montreal’s first game outside of Canada in 2021

Kelowna-Lake Country MLA Norm Letnick, assistant deputy speaker at the B.C. legislature, presides over committee discussions. The legislature is completing its delayed spring session this week, with most MLAs participating by video conference. (Hansard TV)
B.C.’s daily COVID-19 infections dip below 100 over weekend

Only 68 new cases recorded Monday, four additional deaths

The BC Ferries website went down for a short while Monday morning following a provincial announcement that recreational travel between health authorities can resume Tuesday. (Black Press Media file photo)
BC Ferries’ website crashes in wake of provincial reopening announcement

Website back up now, recreational travel between health regions to resume as of Tuesday

The Kamloops Indian Residential School is photographed using a drone in Kamloops, B.C., Monday, June, 14, 2021. The remains of 215 children were discovered buried near the former school earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Communities grapple with what to do with former residential and day schools

Some tear them down as a tool to help healing, others repurpose them as tools for moving forward

FILE – Provincial health officer Dr. Bonnie Henry talks about B.C.’s plan to restart the province during a press conference at Legislature in Victoria, Tuesday, May 25, 2021. THE CANADIAN PRESS/Chad Hipolito
B.C. watching U.K.’s COVID struggles but don’t think province will see similar pitfalls

Studies show that one dose of vaccine is only 33 per cent effective in preventing B.1.617.2 spread

RCMP Const. Shelby Patton is shown in this undated handout photo. RCMP say that Patton was hit by an allegedly stolen truck that he had pulled over on Saturday morning in Wolseley, east of Regina. THE CANADIAN PRESS/HO, RCMP
Pair charged in Saskatchewan Mountie’s death make first court appearance

Const. Shelby Patton was hit by an allegedly stolen truck that he had pulled over Saturday morning

David and Collet Stephan leave for a break during an appeal hearing in Calgary on Thursday, March 9, 2017. THE CANADIAN PRESS/Todd Korol
Appeal Court rejects stay for Alberta couple facing third trial in son’s death

Pair accused in their earlier trials of not seeking medical attention for their son sooner

Highway notices like this come down effective June 14. Public health restrictions on non-essential travel and commercial operation have hit local businesses in every corner of B.C. (B.C. government)
Province-wide travel back on in B.C.’s COVID-19 restart plan

Gathering changes include up to 50 people for outdoor events

Most Read