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Welfare impacts of the 2006 United States – Canada Softwood Lumber Agreement
- Parajuli, Rajan, Zhang, Daowei
- Canadian journal of forest research = 2016 v.46 no.7 pp. 950-958
- exports, imports, lumber, markets, models, softwood, taxes, Canada, United States
- In this paper, we evaluate the market and welfare effects of the 2006 United States (U.S.) – Canada Softwood Lumber Agreement (SLA 2006) based on a U.S. import demand model for Canadian softwood lumber. We find that SLA 2006 reduces the U.S. lumber imports from Canada by 7.78% in the months when export taxes took effect. The welfare analysis based on a partial equilibrium framework shows that U.S. lumber producers gained $1.6 billion and U.S. consumers lost $2.3 billion in 9 years under SLA 2006.