Canada is home to softwood lumber. The industry of popular Canadian Softwood Lumber species is large and also contributes largely on the economy of Canada. There are many jobs that are created in this industry. It continues to grow because many foreign markets demand the softwood lumbers from Canadian companies.
The softwood lumber companies in Canada are putting more efforts in producing many products that supply the local and international market. United States has a strong reliance on Canadian quality lumber products. It is the strongest market of imported lumber from Canada although there have been some disputes in trade. However, these disputes have resulted in a Softwood Lumber Agreement (SLA) in 2006. The agreement saw more than $5 billion as benefits to the Canadian softwood lumber industry. It has stabilized the trade environment for Canadian softwood lumber export.
China and Japan are also strong markets for Canadian softwood lumber export in addition to the United States. The softwood lumber is used by these countries in many applications. The Canadian softwood industry, as a result, receives substantial economic benefits because of the growing need of popular Canadian softwood lumber species. The softwood lumber exports maximize the benefits of Canadian softwood industry and its communities.
The demand of softwood lumber has grown tremendously in China for many years. It now extends towards high value lumber products from low-grade timber. There is a strong economic partnership with Canadian lumber-producing companies. The Chinese pulp industry is also increasingly importing about 34% of Canadian pulp’s exports. Thus, softwood lumber industries in Canada continue to make huge benefits from foreign markets.
Japan is also notably a biggest importer of Canadian softwood lumber export. The country imports, in large quantities, high value products and structural lumber. These imports are predominantly used in residential and commercial constructions. However, Japan still lacks behind China in terms of high demand of popular Canadian softwood lumber species. This is mainly due to economic factors.In addition to the abovementioned strong markets, the Canadian Government is seeking new opportunities in many foreign markets. These markets include, among others, South Korea, India, and European countries. Promotion is underway for popular Canadian softwood lumber species as their industry play a major role in economic growth of Canada.
Canada remains one of the well-known largest producers of softwood lumber in the world. Because of its relatively low market prices, it also remains one of the largest exporters of softwood lumber to foreign markets. From the total percentage of forest product exports in Canada, softwood lumber accounts for more than 20%. The US remains the strong market of Canadian softwood lumber export. Many houses in the US are built with these softwood lumbers.
As expansion of foreign markets is currently underway, the demand for popular Canadian softwood lumber species is going to skyrocket once markets see the value of the species.