An extension of the Softwood Lumber Agreement (SLA) between the U.S. and Canada could be announced in the New Year.
The SLA is currently scheduled to expire on October 12, 2013. However, it includes a provision for a two year extension which the United States is considering, which would extend the SLA through October 2015. The U.S. Trade Representative asked for public comment on an extension in September and both governments have been in discussions regarding it in recent months.
Zoltan van Heyningen, president of the U.S. Lumber Coalition said the Coalition supports a two year SLA extension, as it believes that an extension would provide short-term stability and predictability to the agreement and this issue.
However, a longer extension has not been supported by the U.S. industry at this time, as it has not been successful at settling all of the disputes between the neighboring countries. Since the signing of the SLA in 2006, several disagreements between the two countries have been successfully settled through arbitration. A third case is currently undergoing arbitration, with a decision expected early next year.
The Canadian industry is also unenthusiastic about the agreement, but sees it as better than nothing.
“I want to be very clear, there’s almost nobody in the industry who likes the agreement,” said Avrim Lazar, president of the Forest Products Association of Canada. “We don’t like it. But it’s one heck of a lot better than not having it.”
