Softwood lumber is made from trees that have cones, such as spruce, pine and fir. Canadas biggest export market is the U.S., where it is primarily used in home construction. Softwood lumber accounts for 20 percent of the value of Canadas forest-product exports. The country shipped 68 percent of its output in 2016, 78 percent of which went to the U.S., according to Bloomberg Intelligence. 4. How far back does this go? It started long before President Donald Trumps tough talk on the North American Free Trade Agreement. In the early 1980s, U.S. companies claimed Canada gave its producers access to cheap timber on government land. The Softwood Lumber Agreement, signed by both nations in 1996, established tariffs and quotas on Canadian imports and relaxed tensions. A follow-up accord expired in October 2015, and Canada was given one year to ship lumber tariff-free while both parties were negotiating a new deal. 5. Why havent they reached a new deal?
For the original version including any supplementary images or video, visit https://www.bloomberg.com/politics/articles/2017-04-24/why-the-u-s-and-canada-are-fighting-about-lumber-quicktake-q-a
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