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Hopes of avoiding a new round of U.S. duties on imported softwood lumber are fading for companies like EACOM Timber Corporation which owns sawmills in Timmins and Gogama.

“The American market is critical for us … the majority of our shipments are destined to the U.S.,” said Christine Leduc, EACOM’s director of public affairs.“If you’re (a lumber producer) in Ontario, you’re not going to ship west; you’re not going to ship east. You’re shipping domestically or you’re shipping south. In fact, 95% of Ontario’s forest products are destined to the U.S.”

“For us at EACOM, we’re Ontario’s largest softwood producer with our five sawmills and so access to the U.S. market is critical for us to maintain and grow our operations.”

The nine-year softwood lumber agreement between Canada and the U.S. expired in October 2015. However, duty-free shipping of Canadian lumber to the U.S. continues under a one-year “standstill” clause in the agreement.

“It gives us essentially one year of free trade where the Americans cannot impose any duties or taxes on the exporting Canadian industry,” said Leduc. “It was envisioned that this period could give both parties an opportunity, if necessary, to re-negotiate the agreement.”

From TimminsPress.com: http://www.timminspress.com/2016/07/11/fading-hopes-of-softwood-trade-deal-worries-eacom