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

Fire destroys home in Surrey

Crews called at 3 a.m. Sunday for a residential house fire on the 12000-block of 100 Avenue

Alzheimer’s Society launches helpline

Toll-free phone line available for people with dementia and their caretakers

Art show to be held at White Rock’s Jan’s on the Beach

Art to be displayed until the end of December

New detox centre opens in South Surrey

WhiteRock EHN opened in response to opioid crisis

Saving salmon: B.C. business man believes hatcheries can help bring back the fish

Tony Allard worked with a central coast First Nation to enhance salmon stocks

VIDEO: Vancouver Giants couldn’t find the net: coach

Even with a six-on-three advantage, the Langley-based hockey team couldn’t earn points Sunday.

High-end B.C. house prices dropping, but no relief at lower levels

But experts say home ownership remains out of reach for many for middle- and lower-income families

Worker killed in collision at B.C. coal mine

Vehicle collision occurred at approximately 10:45 a.m. this morning

UPDATE: Hells Angels on scene after body found in Maple Ridge

Body was discovered beneath the Golden Ears Bridge

Mountie left with ‘significant’ injuries after driver attempts to flee traffic stop

Richmond RCMP are looking for a dark coloured Mercedes Benz

B.C. asking for tips on ‘dirty money’ in horse racing, real estate, luxury cars

Action follows a Peter German report on money laundering in B.C. casinos

Canadian dead more than a week after plane crash in Guyana: Global Affairs

Global Affairs said it couldn’t provide further details on the identity of the Canadian citizen

Children between 6 and 9 eligible for $1,200 RESP grant from province

BC Ministry of Education is reminding residents to apply before the deadline

Most Read