TheyB次元官网网址檙e getting used to his rhetoric.

When Ken Kalesnikoff first heard news that President Donald Trump had called the softwood lumber agreement between Canada and the U.S. a B次元官网网址渄isgrace,B次元官网网址� promising to come down hard on the lumber industry with a 20 per cent tariff, he just shook his head.

B次元官网网址淚 think people are starting to get immune to TrumpB次元官网网址檚 comments, because he keeps making them and they donB次元官网网址檛 always hold water. He always seems to be antagonistic,B次元官网网址� the president of Kalesnikoff Lumber told the Star.

B次元官网网址淲e were expecting this to come. We knew there was going to be some sort of duty or restriction. ItB次元官网网址檚 a horrible thing because the people who are getting hit by this have the least impact on what the U.S. coalition is claiming.B次元官网网址�

This softwood lumber dispute has been ongoing since 1982, and stems from concerns that the Canadian is unfairly subsidizing the industry. Since most of the timber is located on Crown land, the stumpage fees are set by the federal and provincial governments rather than by a competitive marketplace B次元官网网址� something U.S. lobbyists take issue with.

But itB次元官网网址檚 more complex than that, and Kalesnikoff should know. As the board chair for the Interior Lumber Manufacturers Association (ILMA) and the co-chair of the newly created Wood Secretariat, heB次元官网网址檚 looking to give voice to forestry companies operating across the province.

And though imports to the U.S. make up only a small fraction of some millsB次元官网网址� operations, others rely almost exclusively on that market. B次元官网网址渋f we do not get a proper softwood lumber agreement, itB次元官网网址檚 really going to hurt this sector,B次元官网网址� said Kalesnikoff.

Former Mayor John Dooley, who is also the community liaison for ILMA, feels the important thing to focus on during this controversy is lobbying the provincial government B次元官网网址渢o make sure the federal government is taking the best interests of the lumber industry into consideration.B次元官网网址�

B次元官网网址淭hey have to create fairness and stability,B次元官网网址� Dooley said.

B次元官网网址淭his is not a new thing. Even though Trump is the one talking about it this time, softwood lumber has been an ongoing issue. The sector is very concerned, and IB次元官网网址檓 hearing from communities the greater concern about potential impact on the economy.B次元官网网址�

So how crucial is lumber to NelsonB次元官网网址檚 economy? According to the Chamber of CommerceB次元官网网址檚 Tom Thomson, itB次元官网网址檚 currently one of the last industries keeping the town afloat.

B次元官网网址淲eB次元官网网址檙e still a resource-based region. There are a number of people directly employed in the industry, and indirectly employed as well. I would say itB次元官网网址檚 a huge player still, very important to us.B次元官网网址�

The four independent mills in the general vicinity of Nelson are Kalesnikoff just outside of town, Porcupine in Salmo, Atco in Fruitvale and JH Huscroft in Creston. They employ 150, 125, 62 and 80 employees respectively, with an average salary of $60,000 per employee resulting in a total of approximately $25 million in salaries.

Each of the four mills has a different percentage of their lumber that they ship south, with numbers ranging from five per cent at Atco to 35 per cent at Kalesnikoff and Porcupine and 40 per cent at Huscroft.

There are approximately 800 full-time jobs in related industries, including road-building, tree-planting and fire management. Overall, across the southern interior of B.C., ILMA has a payroll of $53 million, with the secondary jobs receiving $59 million in pay. In an ILMA document called B次元官网网址淥ur Positive Impact,B次元官网网址� they note the broader industries affected, including graphic design, accountants, and advertising.

Thomson said B次元官网网址渢he industryB次元官网网址檚 spinoff is tremendous,B次元官网网址� noting that not only does the industry attract people to the area, but companies such as Mainjet Motorsports get business from supplying logging machinery.

B次元官网网址淚 would say this is a big concern, any time thereB次元官网网址檚 a trade dispute between Canada and the U.S. You introduce one tariff and suddenly thereB次元官网网址檚 another one, and then they go after the dairy industry. All of sudden the whole North American Free Trade Agreement is under the microscope and people are saying B次元官网网址榳e should just throw it all out.B次元官网网址橞次元官网网址�

Thomson said B次元官网网址渢he bigger the company, the easier it is for them to sustain over a long-term trade dispute.B次元官网网址� He noted that there have been instances in the past where the tariffs levied were put into trust and ultimately returned once the issue was settled in court.

B次元官网网址淪hort-term impact with cash flow, this could be serious, and it could mean lay-offs. Depending on how long it goes for, thatB次元官网网址檚 always a possibility. Right now lumber prices are pretty high, but if you put a 20 or 30 per cent tariff on their profitability will go down.B次元官网网址�

Thomson said the lumber industry has been hanging in limbo for years now, since the softwood lumber agreement expired in October 2015. Right now the main thing the industry is looking to do is diversify.

B次元官网网址淥ne thing we really agree with Premier Christy Clark on is diversity,B次元官网网址� said Kalesnikoff.

B次元官网网址淲e can open up markets in China and India, plus the premierB次元官网网址檚 been talking about new opportunities in B.C. and Canada that are out there. We want to be innovative with what we do with lumber, and more creative.B次元官网网址�

As far as the lumber headed to the U.S., he figures one of the biggest markets is for high-end and niche products, something all the mills in ILMA are interested in producing.

B次元官网网址淲eB次元官网网址檙e playing nice in the sandbox, we donB次元官网网址檛 want to create an us versus them scenario. Interfor, Canfor, theyB次元官网网址檙e all good at making two by fours and thatB次元官网网址檚 great. But weB次元官网网址檙e the ones who are innovative and weB次元官网网址檙e the ones who think of these things.B次元官网网址�

Ultimately, Kalesnikoff figures the tariffs will hurt U.S. consumers.

B次元官网网址淭his is not about subsidies, this is about market value. They want the market share, they want the prices to go up, and thatB次元官网网址檚 ludicrous because theyB次元官网网址檙e only going to hurt their own people.B次元官网网址�

He believes B次元官网网址渢he people who will win when the dust settles are the landowners who own the trees in the U.S.B次元官网网址�