Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: ContentiousObjector
What this piece doesn't mention is that the softwood lumber tariff has had a devastating impact on U.S. lumber producers.

The tariff had a serious impact on Canadian mills for a while, but these producers were able to overcome much of the cost of the tariff by ramping up their production so they could produce more lumber out of the same facilities. As a result, they were able to gain efficiencies of scale that enabled them to sell the lumber in the U.S. competitively. But to meet the same consumer demand while producing more wood, the lumber industry (particular those giant producers like Boise-Cascade and Weyerhauser that own subsidiaries on both sides of the border) had to shut some of their facilities down. And you guessed it -- whenever possible, they've shut the U.S. facilities down.

Ironically, this resulted in other unforeseen circumstances -- To produce more lumber they had to cut more trees, and since they were cutting more trees they also ramped up their production of other wood products such as paper. And so the U.S. paper industry has been devastated by reduced profit margins, too.

7 posted on 01/30/2003 11:33:22 AM PST by Alberta's Child
[ Post Reply | Private Reply | To 1 | View Replies ]


To: *"Free" Trade
http://www.freerepublic.com/perl/bump-list
8 posted on 01/30/2003 11:43:32 AM PST by Libertarianize the GOP (Ideas have consequences)
[ Post Reply | Private Reply | To 7 | View Replies ]

To: Alberta's Child
It's far better to burn your forests and discourage competition from the United States mills. Then set large tariffs so building costs go up dramatically. Our all-wise, all-knowing government is demonstrating how effective government can become. NOT
9 posted on 01/30/2003 11:47:23 AM PST by meenie
[ Post Reply | Private Reply | To 7 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson