Friday, July 31, 2020, Afternoon — Committee A
I will deal with the three questions expeditiously and in reverse order. The topic around the changes to the manufactured forest products regulation. We have done analysis, like we do with any policy change, using a SLA lens, a softwood lumber agreement lens, on policy changes as one of the numerous lenses we use. We've consulted with our legal representatives in the U.S. on this, and we've come to the conclusion that there's no significant concerns around risks to the softwood lumber disagreement. This second question was around the species that are captured. Yes. There are two aspects of the amendments. One is the aspect around the requirement in changing what is considered a fully manufactured product. That one applies specifically to western red cedar and cypress, because that was a specific issue on the coast that I already addressed. However, another aspect of the amendments is the maximum cross-section area of timber to be considered manufactured and, therefore, qualified to be exported without penalty. That has changed for all species, interior and the coast, to reduce from 0.2 square metres, which is roughly a 17-by-17-inch diameter to 0.1 square metres, which is roughly a 12-by-12-inch diameter. So that applies to all species, interior and coast, and a full manufacturing aspect applies to western red cedar and cypress. The first question, again, around exemptions. Again, this is anything that does not meet the specifications that I just outlined, but a manufacturer still wants to be exported without penalty. There is the ability to pursue an exemption from those penalties. I already outlined the process. We have, as the members called it, a liaison, but we were calling a consultant working with industry. We're working with recommendations that have come back with industry, and we'll go back to the industry in the near future. But those exemptions would be on a case-by-case basis. we have, as the members called it, liaison, but we were calling the consultants working with industry. We're working with recommendations that have come back from industry, and we'll go back to the industry in the near future. But those exemptions would be on a case-by-case basis.
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