Trading in the Future: British Columbia's Forest Products Compromise

The authors examine the commodity-oriented nature of the British Columbia (BC) forest industry in the context of domestic policy changes and globalization. An analysis of primary data on the volume and value of wood products highlights the degree to which BC firms depend on the export of four products (softwood lumber, pulp, newsprint, and paper) for sale in three markets (United States, Europe, and Japan). This commodity-oriented industrial approach has been negatively affected by allowable annual cut (AAC) reductions in BC consequent upon “falldown,” increased stumpage rates, the Forest Practices Code, and the Protected Areas Strategy. BC's forest sector is under threat also from lower-cost companies benefiting from trade liberalization, national and regional forest industry development policies, lower production costs, and technological innovation. The report concludes that BC's commodity-oriented forest industry will be unable to remain globally competitive as a result of increasing costs within BC and decreasing costs elsewhere. © 1998 Taylor and Francis Group, LLC.