Quote:
Originally Posted by eternallyme
I think one issue that never comes up in the softwood dispute yet needs to be considered is the currency exchange. The issue was dormant for a decade when the Canadian dollar was much higher (at times over par) and there was no price advantage. Right now, with the dollar about 35% weaker, there is a sense that US companies are taking advantage of it to dump Canadian wood on the US.
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I know for a fact that the exchange rate of our dollar compared to the U.S.'s make a huge difference in forestry and mining. So you are right about that. Labour and production costs are generally lower in Canada with a low Canadian dollar. The resources companies like it because they get paid in U.S. dollars but only have to play employees and bills in Canadian.