The Softwood Lumber Agreement (SLA) is a trade agreement between the United States and Canada that regulates the export of softwood lumber products from Canada to the U.S. Softwood lumber refers to lumber that is produced from coniferous trees, such as spruce, pine, and fir.

The history of the SLA dates back to the 1980s when there were trade disputes between the U.S. and Canada over softwood lumber. The U.S. accused Canada of subsidizing its softwood lumber industry, giving Canadian firms an unfair advantage in the U.S. market. The U.S. imposed tariffs and quotas on Canadian softwood lumber exports in the 1990s, leading to a series of negotiations and legal disputes between the two countries.

To resolve the trade dispute, the SLA was first signed in 1996 and then renewed in 2001, 2006, and 2017. The agreement sets quotas and export taxes on Canadian softwood lumber exports to the U.S. The quotas limit the amount of softwood lumber that Canada can export to the U.S., while the export taxes are designed to offset any subsidies provided by the Canadian government.

The SLA is intended to provide stability and predictability in the softwood lumber trade between the U.S. and Canada. However, the agreement has faced criticism from both Canadian and U.S. lumber producers. Some Canadian producers argue that the SLA unfairly restricts their access to the U.S. market, while some U.S. producers argue that the quotas and taxes are insufficient to level the playing field with Canadian competitors.

The SLA has also been a subject of controversy in recent years due to its expiration and the failure of the U.S. and Canada to agree on a new agreement. The SLA expired in October 2015, and since then, there have been disputes between the two countries over the terms of a new agreement. In the absence of a new agreement, the U.S. has imposed tariffs on Canadian softwood lumber imports, leading to further trade disputes and uncertainty in the industry.

In conclusion, the Softwood Lumber Agreement is a trade agreement between the U.S. and Canada that regulates the export of softwood lumber products. The agreement has been the subject of controversy over the years, and its expiration and failure to renew have led to further trade disputes and uncertainty in the industry.