2. “Stumping fees” is the historically used term to describe the price for lumber based on the number of trees cut down. Now referred to as “stumpage”, the term has changed as has the way to price lumber. Now, “stumpage” refers to the price paid for cutting down and harvesting lumber by a private company or corporation.
3. Currently, stumping fees are determined by measurements of the wood (varies between cubic meters, ton or board feet).First, before the lumber is even cut down it is assessed …show more content…
A duty is a tax placed on transactions, goods or services. In this case, placed on the lumber itself along with the transactions completed surrounding the industry. These duties (rules) can be enforced by the law or a third partner in order to keep things fair between two businesses or companies (Staff).
5. There are many different duties; two types that are common to Canadian lumber are anti-dumping and countervailing. (Kapelos). These two duties would heavily affect Canada’s lumber industry in a negative way.
6. In the early 2000’s, 27.22% duty was applied to Canadian lumber, imposed by the U.S. Resulting in job loss for 15,000 workers in B.C. (Kapelos)
7. The impact of duties is very negative in relation to the lumber industry on Canadian soil when it comes to competitive advantages. Taking away the upper hand, these duties imposed by the United States seem to benefit them and not Canada the majority of the time.
8. Despite having to negotiate nine different problems surrounding the Canadians and the Americans new Softwood Lumber Agreement, the hardest one of them all, yet most important, is market