Tariffs against B.C. wood products are prohibitively high in Malaysia

Forest industry waits for Pacific trade deal

B.C. wood products are shut out of some Asian countries such as Malaysia, Vietnam and Brunei by high import tariffs

Wood products producers are encouraged by the Trudeau government’s decision to sign the Trans-Pacific Partnership, the first step to ratifying a sweeping agreement with Japan, Australia and other Asian countries.

International Trade Minister Christia Freeland said this week she will take the next “technical step,” allowing the TPP to be debated in the House of Commons. It’s the first signal the Liberals will continue the work started by the Conservative government, which warned against being left out as the U.S. and Mexico go ahead with the TPP.

“All in all we think this is a pretty good agreement,” said Paul Lansbergen, acting president of the Forest Products Association of Canada, in an interview from Vancouver.

“A lot of our industry is in rural Canada, and I think it’s important for the government to recognize the importance of the well-paying jobs that we provide,” he said. “And when our economy is having some rough times, particularly oil and gas, really the government should be thinking about how our economy is diversified.”

Lansbergen said the deal not only phases out tariffs against Canadian forest products, it has clear provisions to settle disputes, and rules around blocking imports due to concerns about insects or other contaminants.

Some of the TPP partners currently have few forest product imports from Canada because of “prohibitive” tariffs, he said. Vietnam applies tariffs of up to 31 per cent, Malaysia up to 40 per cent and Brunei up to 20 per cent, which would be phased out under TPP.

Japan, a long-time customer for B.C. lumber, has tariffs of up to 10 per cent on forestry and value-added products such as oriented strandboard and engineered wood.

Forest product exports have done well with the low Canadian dollar, with sales to the U.S. returning to historic levels after a collapse of the U.S. housing market in 2008.

Canada’s softwood lumber agreement with the U.S. expired last fall, but bilateral wood products trade is exempt from the TPP as it was left out of NAFTA.

 

Just Posted

City of Port Alberni issues water quality alert for Kitsuksis Creek area

Kitsuksis Creek residents urged to use alternate drinking water source

Rain and high winds to hit Vancouver Island this afternoon

Thursday and Friday to see downpour of 20 to 50mm and high winds on Vancouver Island

Learn the basics of publishing at Port Alberni workshop

George Opacic of Rutherford Press will present keys to the professional side of publishing

Septic truck rolls over without a spill west of Port Alberni

Single vehicle crash took place on Klekhoot Crescent

Vancouver Island partners sign hull design contract for floating LNG project

Steelhead LNG and partner Huu-ay-aht First Nations say the agreement was signed in Barcelona

Sproat Lake hosts fall dragon boat regatta

Port Alberni’s Sproat Ness Dragons earn third place

Horvat leads Canucks to 4-3 shootout victory over Kings

Vancouver dumps L.A. in NHL pre-season contest

Update: Search called off for missing plane between Edmonton and Chilliwack

Search efforts were concentrated along the Highway 5 corridor between Valemount and Kamloops

Why Whistler for ski jumping in 2026? Calgary proposal gets pushback

Calgary 2026 proposes re-using the 2010 ski jumping venue Whistler for that sport and nordic

Despite progress, threat of 232 tariffs dominates NAFTA negotiations

Any deal is seen to require congressional approval before Dec. 1 to survive new Mexican government

VIDEO: Hundreds line highway as family brings home body of B.C. teen

Northern B.C. showed their support by lining Hwy 16 as Jessica Patrick’s body returned to Smithers.

B.C. MP Todd Doherty receives award for saving man who collapsed on a plane

Conservative MP was flying from Vancouver to Prince George, B.C., in June last year

Alleged border jumper from Oregon facing 2 charges after police chase in B.C.

Colin Patrick Wilson charged with dangerous operation of motor vehicle, flight from a peace officer

More than 35 B.C. mayors elected without contest

No other candidates for mayor in the upcoming local election in 22 per cent of B.C. cities

Most Read