British Columbia (BC) has announced an overhaul in its forest management structure to help end the long-running softwood dispute with the US.
The provincial government’s forests minister Mike de Jong said BC would eventually sell up to 45% of its timber on the open market, buy back 20% of cutting contracts granted to lumber companies and relax rules on how sawmills can purchase logs.
One of the key US demands for dropping its punishing tariffs on Canadian timber imports is a more market-based pricing system. It has long complained that Canada’s current system has effectively been subsidising the country’s timber industry.
US lumber companies have previously demanded BC sell at least half of its timber through auctions.
BC will spend about C$135m buying back timber cutting rights and setting up a trust fund of about C$50m to help forestry workers and contractors affected by the changes. The level of annual cutting rights to native indians will also increase.
