MONTREAL — The benefit of the weaker loonie to lumber exports is likely to arouse the protectionist instincts of the U.S. lumber industry, says James Lopez, CEO of Tembec. According to the Canadian Press, Lopez issued the warning prior to a shareholder meeting last week, saying “I think that they’re watching the Canadian dollar drop, particularly in lumber, and they’re saying, ‘This isn’t fair’.” With the Canada-U.S. softwood lumber agreement having expired in October, Lopez believes the U.S. Lumber Coalition will argue the loonie’s position puts it at a competitive disadvantage.
A spokesman for International Trade minister Chrystia Freeland dismissed accusations by the Conservative opposition that the government is stalling on reaching a new deal. The U.S. Lumber Council has not commented on the currency changes, but spokesman Zoltan van Heyningen stressed the importance of renewing the deal before inertia sets in.
Tembec narrowed its losses for the first quarter when it posted earnings last week, with a net loss of $28 million, compared to $62 million the same time last year. Sales increased year-over-year from $332 million to $354 million.
