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U.S. ambassador to Canada says softwood solution will be 'very, very difficult'

CANADA (From news reports) -- Pete Hoekstra says he hopes the United States and Canada can strike a deal on softwood lumber, an issue that predates both of Donald Trump's terms in Washington.

"This is going to be a very, very difficult one to solve," Hoekstra, the U.S. ambassador to Canada, said Friday on a visit to New Brunswick that included an event at the Fredericton Chamber of Commerce.

"I think the focus will be resolving some other issues, finding out exactly how we do those to see if maybe after 40 years we can finally resolve softwood lumber."

New Brunswick is a big lumber exporter to the U.S. coming from producers like J.D. Irving.

When asked if the U.S. needs Canada's wood products, Hoekstra wasn't sure if the U.S. produced all the lumber it needs. He said the country "may need lumber or building materials from someone other than just the United States."

J.D. Irving said in a February press release that "more than 80 per cent of New Brunswick's forest products exports cross the U.S. border."

Those products include softwood and hardwood lumber, pulp and paper products, shingles, fibre and oriented strand board, and even Christmas trees.

Hoekstra stopped in Fredericton on Friday to meet with Premier Susan Holt and speak before the chamber of commerce.

Hoekstra said that Holt made her province's point about recently increased softwood lumber tariffs.

"She brought up her concern and her hope that we could reach an agreement on softwood lumber," he said. "Other than that, it's not for me to talk about her position. Ask her. But I mean ... she's passionately wanting to open up markets."

In early August, the U.S. increased countervailing duties on Canadian softwood lumber to around 35 per cent.

Ron Marcolin, the divisional vice-president of Canadian Manufacturers and Exporters, attended the chamber of commerce event. He said he was glad to hear about the ambassador's interaction with Holt.

Marcolin also said that Hoekstra was forthright while on stage during the chamber of commerce event.

"He certainly told us what he thought. I mean, there is no beating around the bush. We now certainly know what, in fairness, we're up against."

He said his organization is Canada's largest and oldest trade and industry association. It represents many builders, including J.D. Irving.

Marcolin thinks the lumber tariffs are a way for the U.S. government to defend its own producers, who are losing market share, he said.

"Ultimately they're saying, 'OK, we need help from the U.S. government.' ... Part of that help is [to] 'keep out those big, bad Canadians and let's tax them because they're a competitor,'" said Marcolin.

"Obviously, though, what they don't realize, and they don't want to admit is that Canadian wood is far superior to U.S. wood."

Marcolin did like Hoekstra's point to the crowd that the U.S. is always open for business.

"We are especially open for business with Canadians ... I'm a marketing guy. I want your business," Hoekstra said.

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