canada pushing adoption of trade agreement

Canada’s national government is pushing the provinces to accept the lumber trade deal it negotiated with the U.S., despite wide differences among the regions.

To uphold the deal, which would limit Canadian exports, British Columbia will impose an export tax when prices fall below a set level. Agreement on the deal is reportedly assured now that former opponents in Quebec dropped their objection as part of a wider bid for influence in the national government.

Even with passage of the deal, the dispute between lumber producers in both countries is likely to continue. Among the reasons: the slowdown in the U.S. housing market will reduce demand, making imposed taxes and caps especially onerous.