In society today, trade plays an important role in the progress of any countries .
"Trade is absolutely essential in Canada's economy .
in order to maintain the lifestyle's currently enjoyed by Canadians."(Compton's). .
"Canada is also largely dependent on exports which is an international transaction in .
which a foreign currency is converted into a domestic one in order to purchase a domestic .
good."(Compton's). Canada's biggest trading partner is USA, they both hold the biggest .
trading relationship in the world, which generates more than $1 billion (US) a day in two-.
way trade. One of Canada's largest export to the United States is Softwood Lumber with .
over 18.6 billion board feet of lumber shipped in 2001 alone. The problem though .
through all this is that Canada has been taken advantage of by USA through this .
softwood lumber dispute.
Trade amongst Canada and the USA has become a common action to these two .
countries. They became each other's largest trading partners at the turn of the 20th .
century. But with successful trade came many disputes that eventually hurt the trade .
relation amongst these two countries. Today Canada and the USA face there biggest .
conflict in the Softwood Lumber Dispute. "The history of Canada's softwood lumber .
disputes with the US is a long one. The first skirmishes date back to disagreements .
between New Brunswick and Maine in the 1820's."(Miner, 23). U.S. and Canadian .
citizens are fortunate to benefit from one of the most positive trading relationships in the .
world under the North American Free Trade Agreement (NAFTA). However, there is a .
major commodity, softwood lumber, which is excluded from the free trade benefits of .
NAFTA and subject to trade quotas. On April 1, 1996 limitations were placed on the .
amount of lumber permitted to enter the United States from Canada. The limitations came .
from a joint agreement called the U.S.-Canada Softwood Lumber Agreement (SLA), .
which was signed in 1996 and eventually expired in March, 2001.