Homebuilders in the United States would have access to a new source of cheaper lumber from Chile.

 

According to the National Association of Home Builders, U.S. home builders just wrapped up four days of talks with Chilean government, trade, and industry officials aimed at rising softwood lumber and other wood product exports to the United States. buy apartment qatar

 

 

"The meetings with over 100 Chilean lumber producers, trade unions, and government officials were extremely fruitful," said Jerry Howard, CEO of the National Association of Home Builders (NAHB). "We support allowing more competition in the US lumber market because we know it will help American families looking to buy homes and American builders looking for a consistent supply of reasonably priced lumber."

 

The discussions covered a variety of topics, including developing relations between Chilean producers and American buyers, as well as identifying and addressing any policy obstacles to increasing Chilean export volumes from current levels.

 

NAHB spoke with two of Chile's three largest lumber producers, as well as a number of smaller producers, all of whom said that they would work with their government to increase exports. Furthermore, NAHB was able to meet with Swedish lumber producers in Chile, who expressed an interest in continuing discussions about the lumber exports to the United States and strengthening their relationship.

 

The meetings in Chile take place at a time when the United States and Canada are negotiating a new softwood lumber trade deal. While American home builders would prefer to buy all of their softwood lumber and wood products from domestic suppliers, the country currently lacks the capacity to meet demand. Canada is by far the biggest softwood lumber exporter to the United States. The average share of Canadian imported lumber in the US market over the last three years has been 28 percent.

 

Last October, a nine-year softwood lumber agreement between the US and Canada that created a system of fees and quotas on Canadian imports to the US caused by adjustments in the market price of softwood lumber expired. Until October 12, the two countries are in a one-year "cooling off" period, during which neither country can file a trade dispute over softwood lumber imports.

 

Numerous trade tensions have disrupted trade trends since the 1980s, causing excessive cost increases in industries that depend on softwood lumber, such as home construction, and straining US-Canadian ties. The housing market in the United States has been left in the lurch as a result of this shortsighted political impasse.

 

As US and Canadian negotiators work out the details of a new agreement, NAHB believes it is important to keep the housing market in mind in order to ensure that American consumers have access to a consistent, dependable, and affordable lumber supply.

 

Despite the fact that Chile has just 1.22 percent of the US lumber market, NAHB sees a lot of room for development because the two countries have a free trade agreement.

 

"As the housing recovery in the United States gains traction, demand for softwood lumber will rise," Howard predicted. "This is why increasing lumber trade with Chile can be beneficial to both countries. Chile will be able to increase its exports and market share to the United States, while U.S. industries such as construction, which depend on a steady supply of softwood lumber, will be able to meet American consumers' housing needs while keeping lumber and housing affordable."