BC sawmills under siege: industry responses to the US-Canada softwood lumber dispute 2001-2008

Since the 1980s the Canadian and BC lumber industries have been embroiled in an acrimonious lumber dispute with the US. The prolonged constraints placed on Canadian access to the US lumber markets have constituted significant threats to the viability of the BC softwood lumber industry. This thesis examines how BC sawmill factories have adjusted the size and scope of their operations. The empirical research utilizes an extended case study approach to study in-situ location adjustments from 2001-2008. This analysis particularly focuses on how trade costs, uncertainties and the politics associated with the dispute have affected employment, production, productivity, product mix, the geography of sales and industry sentiment. The results indicate significant differences in regional and factory size adjustments and declining percentage of US exports. Firm behaviour is important for analyzing spatial implications of the trade dispute, as firm responses will ultimate indicate the direction of change in the industry.