Defining the rift : U.S. economist examines the consequences of the differences in U.S. and Canadian stumpage valuations

Abstract

If America had Canada’s stumpage system, then there wouldn’t be much of a dispute. But the reality is there are two distinct models of timber valuation, and the core of America’s complaint vis-à-vis Canada is that, as a result, there is an asymmetry in the market where the two sides compete: on the one hand all producers have equal access under the same rules and standards to the U.S. lumber market, but at the timber supply level a different and exclusionary Canadian lumber pricing model provides wood at rates that disadvantage U.S. competitors. Canadians acknowledge that Canada has a competitive advantage in the way it prices timber, but claim it’s not a subsidy.

Citation

Spelter, Henry. 2005. Defining the rift : U.S. economist examines the consequences of the differences in U.S. and Canadian stumpage valuations. Timber processing. (Apr. 2005): pages 24, 26.