Thank you, Madam Chair. I appreciate the opportunity to speak to you and the committee today.
My name is Kurt Niquidet. I am the president of the BC Lumber Trade Council, and I represent the majority of softwood lumber producers in British Columbia.
The B.C. forest sector contributes significantly to the economy. In 2022 the industry supported 100,000 jobs, contributed over $17 billion to GDP and provided $6 billion to government revenue. Forest products are B.C.'s second-largest export category, and B.C. is the largest lumber-producing region in Canada. We represent about 40% of our softwood lumber exports to the United States.
Since the expiration of the last softwood lumber agreement in 2016, over 10 billion dollars' worth of duties have been collected and now sit on deposit. Duties recently increased to about 14% and are projected to double next year. The duties have the effect of raising prices in the U.S., hurting U.S. consumers of softwood lumber. They also have a significant impact on the Canadian sector, lowering production and employment, which hurts thousands of communities that rely on forestry. Canada's share of the U.S. market has dropped from over 30% to around 24% today. In its place, there has been increased U.S. production, as well as increased imports from European countries that are not subject to duties.
While the duties are unjustified and unfair, the CUSMA dispute mechanism process has been very slow and needs improvement. This long-standing fight needs to end. The B.C. industry stands shoulder to shoulder and will continue to work with governments to reach a new agreement.
Thanks very much.