Abstract
This essay examines Canada’s lumber industry, the Softwood Lumber Agreement with the US and how globalization, the industry and the agreement all play a factor in each other’s functions. This essay is not a detailed examination of Canada’s softwood lumber agreement but a generalized examination of how globalization influences and affects the lumber industry, and in turn, the softwood lumber agreement.
Executive Summary
Logging 200 years ago was a booming industry and started a chain reaction to building our nation. Today, technology and government regulations have changed how logs are harvested but the industry’s core function remains the same, to harvest logs for sale. Today the US is Canada’s largest lumber market, but once exports to Britain were more important. What remains the same through centuries of market fluctuations is Canada’s comparative advantage in lumber, Canada’s forests account for 10% of the world’s store.
Globalization is bringing markets closer together and how this affects the lumber industry needs a closer analysis in how the lumber industry has evolved from hand falling trees to where the industry is today. Government regulations influence and control the lumber industry and this essay attempts to analyze the Softwood Lumber Agreement (its evolution, perspectives of, economic effects) and how globalization may affect future agreements. This essay also looks at globalization and the alternatives to the Softwood Lumber Agreement.
Depending upon who you ask, the Softwood Lumber Agreement has caused benefits or pain. Although the Softwood Lumber Agreement is not front page news at this time, the effects are still far-reaching and a new agreement will need to be addressed in the not so far future.
Analysis
Canada’s Lumber History
Logging two hundred years ago was a laborious and dangerous industry, many workers were needed