They含羞草研究社檙e getting used to his rhetoric.

When Ken Kalesnikoff first heard news that President Donald Trump had called the softwood lumber agreement between Canada and the U.S. a 含羞草研究社渄isgrace,含羞草研究社� promising to come down hard on the lumber industry with a 20 per cent tariff, he just shook his head.

含羞草研究社淚 think people are starting to get immune to Trump含羞草研究社檚 comments, because he keeps making them and they don含羞草研究社檛 always hold water. He always seems to be antagonistic,含羞草研究社� the president of Kalesnikoff Lumber told the Star.

含羞草研究社淲e were expecting this to come. We knew there was going to be some sort of duty or restriction. It含羞草研究社檚 a horrible thing because the people who are getting hit by this have the least impact on what the U.S. coalition is claiming.含羞草研究社�

This softwood lumber dispute has been ongoing since 1982, and stems from concerns that the Canadian is unfairly subsidizing the industry. Since most of the timber is located on Crown land, the stumpage fees are set by the federal and provincial governments rather than by a competitive marketplace 含羞草研究社� something U.S. lobbyists take issue with.

But it含羞草研究社檚 more complex than that, and Kalesnikoff should know. As the board chair for the Interior Lumber Manufacturers Association (ILMA) and the co-chair of the newly created Wood Secretariat, he含羞草研究社檚 looking to give voice to forestry companies operating across the province.

And though imports to the U.S. make up only a small fraction of some mills含羞草研究社� operations, others rely almost exclusively on that market. 含羞草研究社渋f we do not get a proper softwood lumber agreement, it含羞草研究社檚 really going to hurt this sector,含羞草研究社� said Kalesnikoff.

Former Mayor John Dooley, who is also the community liaison for ILMA, feels the important thing to focus on during this controversy is lobbying the provincial government 含羞草研究社渢o make sure the federal government is taking the best interests of the lumber industry into consideration.含羞草研究社�

含羞草研究社淭hey have to create fairness and stability,含羞草研究社� Dooley said.

含羞草研究社淭his is not a new thing. Even though Trump is the one talking about it this time, softwood lumber has been an ongoing issue. The sector is very concerned, and I含羞草研究社檓 hearing from communities the greater concern about potential impact on the economy.含羞草研究社�

So how crucial is lumber to Nelson含羞草研究社檚 economy? According to the Chamber of Commerce含羞草研究社檚 Tom Thomson, it含羞草研究社檚 currently one of the last industries keeping the town afloat.

含羞草研究社淲e含羞草研究社檙e still a resource-based region. There are a number of people directly employed in the industry, and indirectly employed as well. I would say it含羞草研究社檚 a huge player still, very important to us.含羞草研究社�

The four independent mills in the general vicinity of Nelson are Kalesnikoff just outside of town, Porcupine in Salmo, Atco in Fruitvale and JH Huscroft in Creston. They employ 150, 125, 62 and 80 employees respectively, with an average salary of $60,000 per employee resulting in a total of approximately $25 million in salaries.

Each of the four mills has a different percentage of their lumber that they ship south, with numbers ranging from five per cent at Atco to 35 per cent at Kalesnikoff and Porcupine and 40 per cent at Huscroft.

There are approximately 800 full-time jobs in related industries, including road-building, tree-planting and fire management. Overall, across the southern interior of B.C., ILMA has a payroll of $53 million, with the secondary jobs receiving $59 million in pay. In an ILMA document called 含羞草研究社淥ur Positive Impact,含羞草研究社� they note the broader industries affected, including graphic design, accountants, and advertising.

Thomson said 含羞草研究社渢he industry含羞草研究社檚 spinoff is tremendous,含羞草研究社� noting that not only does the industry attract people to the area, but companies such as Mainjet Motorsports get business from supplying logging machinery.

含羞草研究社淚 would say this is a big concern, any time there含羞草研究社檚 a trade dispute between Canada and the U.S. You introduce one tariff and suddenly there含羞草研究社檚 another one, and then they go after the dairy industry. All of sudden the whole North American Free Trade Agreement is under the microscope and people are saying 含羞草研究社榳e should just throw it all out.含羞草研究社櫤�羞草研究社�

Thomson said 含羞草研究社渢he bigger the company, the easier it is for them to sustain over a long-term trade dispute.含羞草研究社� He noted that there have been instances in the past where the tariffs levied were put into trust and ultimately returned once the issue was settled in court.

含羞草研究社淪hort-term impact with cash flow, this could be serious, and it could mean lay-offs. Depending on how long it goes for, that含羞草研究社檚 always a possibility. Right now lumber prices are pretty high, but if you put a 20 or 30 per cent tariff on their profitability will go down.含羞草研究社�

Thomson said the lumber industry has been hanging in limbo for years now, since the softwood lumber agreement expired in October 2015. Right now the main thing the industry is looking to do is diversify.

含羞草研究社淥ne thing we really agree with Premier Christy Clark on is diversity,含羞草研究社� said Kalesnikoff.

含羞草研究社淲e can open up markets in China and India, plus the premier含羞草研究社檚 been talking about new opportunities in B.C. and Canada that are out there. We want to be innovative with what we do with lumber, and more creative.含羞草研究社�

As far as the lumber headed to the U.S., he figures one of the biggest markets is for high-end and niche products, something all the mills in ILMA are interested in producing.

含羞草研究社淲e含羞草研究社檙e playing nice in the sandbox, we don含羞草研究社檛 want to create an us versus them scenario. Interfor, Canfor, they含羞草研究社檙e all good at making two by fours and that含羞草研究社檚 great. But we含羞草研究社檙e the ones who are innovative and we含羞草研究社檙e the ones who think of these things.含羞草研究社�

Ultimately, Kalesnikoff figures the tariffs will hurt U.S. consumers.

含羞草研究社淭his is not about subsidies, this is about market value. They want the market share, they want the prices to go up, and that含羞草研究社檚 ludicrous because they含羞草研究社檙e only going to hurt their own people.含羞草研究社�

He believes 含羞草研究社渢he people who will win when the dust settles are the landowners who own the trees in the U.S.含羞草研究社�