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Regulations

Viewpoint – The Economic Costs of Protectionism: The Case of Softwood Lumber

Despite multiple legal setbacks before WTO and NAFTA tribunals, American softwood lumber producers are still calling for the imposition of limits and tariffs on Canadian imports, arguing that they represent unfair competition because they are subsidized. If no agreement is ratified before October 12, 2016, imports from Canada could be subject to tariffs of up to 25%. The case of softwood lumber is a good illustration of how protectionism provides benefits for a limited group, all while harming a majority.

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