Resolving Canada-US Trade Disputes in Agriculture and Forestry: Lessons from Lumber

Prominent trade disputes between Canada and the United States involve agriculture and forestry, with lack of transparency caused by Canadian non-market institutions a source of US objections. We examine lessons from the lumber dispute to shed light on US objections to the Canadian Wheat Board (CWB). US lumber lobbyists will continue to use perceived Canadian institutional obscurity to pressure policymakers, while the CWB enables similar agricultural interests to agitate for trade sanctions. Dispute-resolution boards, WTO appeals, and bilateral policy reform can only delay, or be used as bargaining chips in, bilateral negotiations. New strategies are needed if Canada is to maintain sovereignty over its trade institutions.