International Trade Relations and Regional Industrial Adjustment: The Implications of the 1982–86 Canadian-US Softwood Lumber Dispute for British Columbia

Abstract

To contribute towards a better understanding of the evolving relationships between international trade relations and regional industrial adjustment the author examines the implications of the Canada-US softwood lumber dispute that occurred during the 1980s for the softwood lumber industry of British Columbia. Conceptually, these implications are discussed within a progressively more focused series of trade-relations contexts based on principles of political economy and which are represented by the concepts of complex interdependence, continentalism, and bargaining. Empirically, it is found that the dispute led to an unanticipated and undesirable outcome for the lumber industry of British Columbia. Paradoxically, the dispute provides further encouragement for the lumber industry to diversify its operations, a trend which can be considered beneficial.

Neoliberalization and Its Geographic Limits: Comparative Reflections from Forest Peripheries in the Global North

“…Instead, two five‐year and one seven‐year (the last) softwood lumber agreements between Canada and the United States (in 1986, 1996, and 2006) were enacted that variously controlled the volume and/or price of Canadian timber exports through tariffs, quotas, and export taxes. The softwood lumber dispute was extraordinarily complex and contentious (see Hayter 1992, 2000). Canada actually “won” key trade‐dispute hearings under NAFTA and the WTO, but the CFCLI successfully lobbied the United States to continue to oppose free trade in lumber with Canada.…”

Canada's resource economy

“…The power of the US can be illustrated by the way in which Canadian goals regarding the CUFTA were changed by the experience of the lumber industry dispute (Hayter 1992). Restructuring was to continue according to NAFTA's provisions, as well as associated US-inspired revisions to continentalism.…”

Labour Flexibility: A Tale of Two Mills

“…In seeking to emulate the Chemainus model, the efforts of other coastal lumber firms in seeking labour market flexibilities have been reinforced by the fact that since the crisis of the early 1980s the lumber industry has continued to face serious economic problems. In particular, the industry has been hit by American protectionism (which translated into first an export tax on lumber and then higher stumpage), on occasion by a high Canadian dollar, more recessions and increasing wood supply pressures (Hayter 1992). Indeed, the lay-offs announced in the early 1990s have been substantial and are on a similar scale to those of the early 1980s.…”