Timber Industry in Canada - Research Paper Example

July 15 Introduction: This is a research paper on the topic ‘Timber industry in Canada.’ Canada hasa variety of industries like the auto, the lumber, timber, energy, water industry etc. However, this paper is divided into several sections and it aims to investigate the topic ‘timber industry in Canada’ more closely. Timber is one of the most significant products and is an essential raw material for the log industry. Canada’s timber industry is now greatly modernized and remains advantageous. Due to the division of its reorganization, the industry has missed thousands of jobs, which formed considerable benefits in output. These benefits have assisted it to preserve hopeful profit margins somewhat similar, on middling, to those reported in the developed area throughout the 1999 to 2005 stage. 2. Aims and objectives of Research: The aims and objectives of this research paper is to: 1. Analyze the timber industry in Canada and its impact on the Canadian economy. 2. Understand the timber industry’s business in Canada and its relation with other industries. 3. Understand the current issues faced by the timber industry. 3. Background of research: Examining the pattern of industrial movements in Canada, it can be understood that the timber industry plays an important role in the Canadian economy. Therefore, the industry chosen here for analysis is the ‘timber industry.’ The Canadian economy is dependent on the service sector mainly, however, the timber industry, which belongs to the primary sector, happens to be one among the most popular industries that prove to be fruitful for the country. For the purpose of this research, it is not possible to obtain reliable information from primary source, therefore, in this research process the secondary method of collecting information has been adopted. Thus, secondary and qualitative research methods lead this research to vital conclusions. Along with this, the literature review is also taken into consideration. 4. Literature review: According to Kevin Hillstrom and Laurie Collier Hillstrom in the book ‘North America: A Continental Overview of Environmental Issues,’ the economic value of timber produced from the forests is one of the most important aspects. The US creates the world’s most number of wood panels, sawn wood, paper, paperboard and wood pulp, accounting for 25 to 30% of worldwide manufacture. As a result, the mutual production of the two countries accounts for 40% of the world’s manufacturing round wood and above one-third of all processed wood goods together with approximately half the world’s paper pulp. Canada has easily filled the gap by exporting 80 percent of its logged timber to United States destinations for utilization in the creation of US newspapers along with various other paper and wood products. This state of dealings has made Canada the world’s most important exporter of the main wood products. The area of North America should not be seen only as timber storehouses. In both America and Canada, forests give a broad rage of recreational profits, several of which have important financial rates in their own right. “As the old British mercantile system was dismembered in the 1840’s, Canada was thrown into a crisis. The square timber trade had folded up with the removal of British preferences” (Levitt 49). In the book ‘The Myth of the North American City: Continentalism Challenged’ by Michael Arthur Goldberg, John Mercer reveals that there are mostly four generally cited characteristics of the Canadian and US political structure that have been used to show the relationship among these systems. It is examined that both Canada and America are long recognized and constant democracies. He also says that the Canadian financial system has obtained its resource-based nature since earlier times. Demands for raw materials created in European urban markets guided the export of lumber fish and fur. In the early days, the Atlantic fishery was the foundation for financial activity. With further stable settlements, which functioned as entrepots, furs exceeded fish in exports to Europe. But by the 19th century, the main exporters were engaged in the timber business. “In Canada, timber on public lands is sold or transferred to a private company at a stumpage price set by the provincial government. These stumpage prices, which are calculated as residual values by subtracting production costs from final-product prices, are supposed to reflect market conditions and forest- management responsibilities that companies face” (Schmitz 142). According to William Thomas Easterbrook and Hugh G. J. Aitken in the book ‘Canadian Economic History,’ there was an emergence of Canadian labour association in the 1920s by forming resistance unions in the mining industry and needles trade. The labor movement was a trouble for the owners who were against the trade associations. The laborers always had different wants and needs according to the changing circumstances and expected them to be fulfilled by the owners. “The one aspect of the Canadian labour movement that has received some attention from academics is its relation ship with political parties” (Fulford, Godfrey & Rotstein 73). 5. Findings and Discussion The political culture of Canada is in a number of ways a mixture of the political customs of the greater Europe and North America, which stresses constitutional law, personal liberty, freedom of religion and regional autonomy. The two main political parties in Canada are the liberal party and the conservative party. Political compromises consist of various types of costs, some of which are intended while others are unintended. The growth of timber industry in Canada has been in the midst of several political developments like the North American economic integration. The North American economy is an integration of three nations, namely Canada, Mexico and the US. Timber was one of the earliest products, which were exported from Canada. The timber industry started flourishing ever since, especially in the regions of Coastal British Columbia and central Ontario. “In 1901 ‘log products’ alone accounted for 11.5% of the total net output of all Canadian industry. In 1908 just over a third (36%) of the timber produced for making paper was used in Canada. In the 1920s, however, 72% of the timber produced for the paper trade was used in Canada itself” (The Growth of Industrial Economies 86). Conflict within the government: There exists a conflict between the government with respect to preservation of forests and the production of saw timber from raw timber. The production of saw timber affects the environment negatively and disturbs the ecological balance. However, Canadian government supports its timber industry and has incorporated measures to defend the timber industries from trade and protectionist policies of the US. The government has had several discussions with world organizations like the WTO and G-8 partners to battle the undesirable use of timber. The Canadian government has aimed to create harmony between the conservationists as well as the timber industry by aiming optimum utilization of timber and eliminating any possible wastage. Canadian trade unionism started in random organization, illustrating upon the usual motivations. Many elements created big barriers for the growth of a self-sufficient and unified union movement in Canada. As mentioned earlier, the labor movement was a problem for the employers who were against the trade unions. The emergence of trade unions led to the improvement of working conditions, wages of workers etc. Canadian labor unions are an important economic and public force. Labor has been comparatively marginalized from the public policy method for more than a generation. There can be seen a shifting of power from Central and eastern Canada to Western Canada, for improving trade regarding timber. Countries of Western Canada like British Columbia and Alberta have turned into key trading centers. The shifting of power to western Canada will improve the trade prospects and can further promote both the trading as well as manufacturing of timber. Conflict with the US: The Canadian economy has a major business share is the US, but the trade and protectionist polices of the US have forced them to depend more on the Chinese economy. There have always been conflicts between the US and the Canada with respect to trade and protectionist practices. Therefore, the relationship between these two countries needs an analysis as to whether it is a decaying orbit or defying gravity. Canada’s status as a satellite of the American economy needs to be realized. The North American economic integrations are an essential aspect, which need to be studied closely in this context. The most notable problem that Canada faces in competition with the US economy is the deficiency in productivity and the large income gaps, which prevail in the Canadian economy. There have been controversies between the US and Canada because they are interdependent on each other in order to obtain trade benefits. “In Canada, there has been a long standing interest in, and controversy about closer economic ties with the US. Even in Canada there is widespread fear that with integration ‘Canadians will become hewers of wood and drawers of water’” (Kreinin 2). The north economic integration has immense benefits to both Canada and the US as it boosts trade between the two countries. Apart from the trade restrictions from the US, the economic recession also had a major effect on the price of timber, which was later found to have been reduced. The downfall in the price of timber increased the unemployment rate in Canada. But some countries like British Columbia were quick to revive and, at the present, are more engaged in the trading of timber. “The price of lumber and ties experience strong fluctuations which follow a weakening trend ( Dufour Para.19). British Columbia recovers its share of national exports Furthermore, certain Canadian provinces depend more on exports than others. “This is true for British Columbia and the Atlantic provinces, whose exports represented 80% and 71% respectively, of total shipments in 2006. These proportions were less for Ontario (54%), the Prairie provinces (52%), and Quebec (47%)” ( Dufour Para.36). Agriculture is the primary source of income for Canada. The downfall in the timber trade has paved way for the development of the auto and the energy industry. 6. Conclusion: From this research it can be concluded that timber is one of the important factors on which the Canadian economy is highly dependent as is evident from the fact that a decrease in the timber trade has brought about unemployment in the whole country. The economic downturn has affected both the production as well as the trade of timber but Canada is on the roads of recovery of its glory, the timber trade. 7. Recommendations: There exists a tough competition between Canada and the US regarding trade, so it is the responsibility of both the governments to see to it that the competition does not create any personal problems among the people of the two nations and that globalization becomes more developed and ultimately, both the countries benefit. Both countries are interdependent on each other and, thus, the rules and regulations with respect to mobility of labor, trade, free movement of goods and services should be in favor of both. The government of the two countries should work together in order to achieve a harmonious relationship between the two countries and develop the global trade as well as the mutual bond among them. In this way, it is possible that the government of Canada will be able to promote the production as well as the trade of timber. Works Cited Dufour, Daniel .The Canadian Lumber Industry: Recent Trends. Statcan.gc. Web.15July 2011. Fulford, Robert., Godfrey , Dave. & Rotstein, Abraham. Read Canadian: a book about Canadian books.James Lorimer & Company. 1972. Print Kreinin, Mordechai E. North American Economic Integration. Hein online. 1981. Web.14 July 2011. Levitt, Kari. Silent surrender: the multinational corporation in Canada. Volume. Series. McGill-Queen's Press – MQUP. 2003. Print Schmitz, Andrew. International agricultural trade disputes: case studies in North America. University of Calgary Press. 2005. Print The Growth of Industrial Economies, Manchester University Press ND.2011. Print Read More