Cornerstone Research worked with an expert who analyzed the potential impact of eliminating export restrictions on softwood lumber.
Cornerstone Research was retained in the fourth round of the Canada–U.S. softwood lumber dispute. Cornerstone Research worked with Professor Edward Leamer of the University of California, Los Angeles, to address the economic consequences of Canadian log export restrictions.
Professor Leamer found that the elimination of export restrictions would have no long-term price impact.
Professor Leamer submitted analyses before the International Trade Administration, the U.S. Department of Commerce, and the U.S. International Trade Commission on behalf of the respondents. He analyzed whether log export restrictions have a “direct and discernible effect” and benefit softwood lumber producers. Professor Leamer addressed general equilibrium effects, cross-country trade patterns, and log price differences. He found that in the long run there was no price impact of export restrictions and their elimination would have no effect.
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