Softwood Lumber Agreement

[Tom]

Oh!  OK!   I get confused with all the abreviations and buzz words sometimes. 

[David_c]

You aint the only one.

[SwampDonkey]

Depends on where your at for good prices. The mills have prices so low in the east, I think they are trying to drive the private producers under. Can't keep driving prices down while cost of production goes up.  : Then what we'll be hearing from the mills is the private producer can't deliver so we need to cut more (substantially lower priced) crown wood to keep the mill running and import more wood or we are shutting down and moving on. It's the same old 'hold the public for ransom' deal.

[sawguy21]

BC, which  has the largest share of the softwood market, has told the feds that it is not onside. They object to, among other things, a last minute escape clause that allows either party to opt out after 23 months. The feeling is this is to appease the American protectionist groups but our producers want to see some stability. Here, the deal has to be submitted to Parliament for approval and with a minority government in power, the wrangling is not over yet.

[SwampDonkey]

They've dropped crown stumpage twice here now since Christmas, plus a multimillion $ subsidy/forgiveable loan to refurbish old operations.

[sawguy21]

Is NB a significant softwood producer? I know you are a major supplier of pulp and hardwoods.

[SwampDonkey]

Only a trickle compared to BC, 2-3 $billion. But, it means alot to those involved. ;)