alt Hacker NewsIn the softwood lumber dispute that's been going on for decades, the US raised (legitimately) the point that in Canada, land is granted by permit to loggers for only nominal fees; in the U.S. loggers have to pay significant amounts for rights to log. This is effectively a gov't subsidy to Canadian loggers by comparison with American loggers, allowing Canadian loggers to sell softwoods at a lower price.
This is the difficulty with discussing "trade barriers": things that are simply handled differently in different countries can be (arguably) economic factors that discriminate against one side or the other, hence they're trade barriers. Complicating it further, one can create barriers that have plausible deniability, or point to unrelated factors and scream "TRADE BARRIER".
I know someone who was involved for a while in the softwood lumber discussions. Just an absolute snake pit trying to suss out what are real barriers, intended barriers, relevant inputs... and all of this in the context of negotiations over the same, so everything is also "does he mean this or is he distracting us from something else or just building up a talking point to surrender later?"
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Unless you can explain why the American stumpage fees are inherently "correct", this is simply a case of one country having a bigger supply of something and therefore being able to offer it much cheaper. You know... Capitalism working exactly as intended.
Isn't that kind of America's thing?
"No, not like that!"
All the rest of this is designed to distract from the real issue: Americans love Capitalism, except in the rare cases where they don't come out on top. Then everyone else is being mean and unfair.
It's funny. When European governments charge high fees, Americans deride them as socialist and anti-capitalist. When the American government does it (as it does here)? Why, it's the natural order of things! Our fees are the "correct" fees. It's everyone else that's wrong!
Please.
trade courts did not find the US complaints legitimate, and repeatedly rule in canada's favour. the end root of the difference in cost is that canada is really big with a lot of forest and doesnt have better things to do with forested land.
the logs in canada are just worth less than the ones in the US. Differential advantage is a real thing that exists.
If the US government really beleives it to be a canadian government subsidy to loggers, it should be more than happy to give the tariff money to the canadian government, making canada's taxes and fees exactly what the US thinks they should be.