Against the grain

Canada trade officials court China as buyer of softwood lumber as rift grows    Canadian officials on Wednesday concluded a six-day trade mission to China seeking to boost lumber exports there as the two nations continue to explore a free trade agreement.
   The trip coincided with growing strains in the trade relations between Canada and the United States over softwood lumber and dairy products and uncertainty over how U.S. President Donald Trump intends to deal with China over concerns about the bilateral trade deficit and unfair trade practices.
   Canadian Trade Minister Francois-Philippe Champagne participated in a softwood lumber workshop in Chongqing, where he engaged with builders, developers and architects in the southwest city about ways to increase wood-frame housing and increase Canadian wood exports to the region. In Shanghai, wood products importers told the minister they were eager for greater government-to-government cooperation to facilitate their growing demand for Canada’s softwood lumber, according to a readout from the Canadian government.
   “We are actively exploring new opportunities for Canada’s high-quality products, notably softwood, where we found eagerness in China to explore the sustainable, eco-friendly and safe softwood products where our industry excels,” Champagne said. “Expanding Canada’s economic relationship with China will benefit the middle class and our innovative export sector.”
   Canada is the world’s fourth largest exporter of forest products by value.
   The Canadian lumber industry is eyeing China’s growing middle class and demand for housing as an opportunity to increase exports. The delegation included industry representatives from the Quebec, New Brunswick, and British Columbia lumber sector, as well as industry group Canada Wood, Export Development Canada and the Canadian Commercial Corp.
   During a stop in Zhengzhou, Minister Champagne reiterated Canada and China’s shared commitment to double trade by 2025. Two-way trade reached $85 billion last year, with Canadian merchandise exports totaling $21 billion, up 4 percent from 2015.
   At the China Green Companies Summit, Champagne met Jack Ma, executive chairman of Alibaba Group, which launched a portal to sell Canadian products and services on its giant e-commerce shopping site. Champagne also met with major buyers of wood products there.
   Discussions with Chen Zhenggao, minister of Housing and Urban-Rural Development, focused on renewing the Canada-China Memorandum of Understanding on the development of eco-cities, which promotes Canadian wood-frame construction technology. The governments of Canada and China have been working together on an eco-district project in Tianjin Binhai, which incorporates Canadian-wood construction, green-building materials and energy efficient technologies, to build over 100 Canadian-style wood villas.
   Champagne also met with the State Forestry Administration and held roundtables with business representatives, including importers of Canadian wood. He also attended the CNOOC-Nexen Business Mission, which brings Canadian small-and-medium enterprises in the oil and gas sector to China, helping to connect them to Chinese supply chains and highlighting Canada’s expertise in fields such as energy efficiency, renewable energy, bioenergy, carbon capture and storage, alternative transportation fuels, and responsible resource extraction.
   CNOOC is the largest foreign investor in Canada.
   In Beijing, Champagne and Finance Minister Bill Morneau co-chaired the launch of the Canada-China Economic and Financial Strategic Dialogue, a key commitment made during the reciprocal official visits of the two countries’ leaders in fall 2016. The Dialogue covers a wide range of economic and financial issues, aimed at helping both countries unlock opportunities for the middle class through job creation and market diversification.
   “As China continues to grow and expand its economy, the Government of Canada believes that working together on priorities like trade and investment, and sharing important lessons in areas like the financial sector, can help bring stronger growth to citizens in both our countries,” Morneau said in a statement. “A strong economic relationship with China means more opportunities for middle class Canadians to succeed and prosper, and will help China meet its growing needs in sectors such as infrastructure, renewable energy, natural resources, agriculture and aerospace.”
   Earlier this week, the United States announced plans to impose 20 percent tariffs on Canadian softwood lumber imports, arguing that the wood is subsidized by the government because the trees are grown on government land.