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Backgrounders

The United Kingdom: a strategic next step for B.C.’s forestry sector

Softwood lumber imports to the United Kingdom

The U.K. is the largest importer of softwood lumber in Europe. While the U.K. has a domestic forestry sector, it does not meet the needs of domestic building demand. The domestic U.K. forestry sector is limited to providing 3-4 million cubic metres of lumber production, requiring an average of 6-7 million cubic metres of lumber to be imported by the U.K. each year.

The U.K. relies heavily on European supply to meet their lumber demand; however, factors are affecting the European lumber supply, including:

  • The end of a beetle-kill harvest following a spruce bark beetle epidemic in Central and Nordic Europe, which created a temporary excess of spruce lumber in Europe, which has ended.
  • The U.K has banned the import of Russian wood products, which previously averaged around 5% of its foreign lumber imports.

New construction markets in the United Kingdom

In recent years, several factors have led to a major shift to build with wood in the U.K., including:

  • wood being a low-carbon building material;
  • wood being less prone to heat loss in the winters; and
  • wood being easier to construct off-site resulting in lower costs and labour requirements.

The housing prefabrication market is growing in the U.K., and when combined with B.C.’s leadership in research on prefabrication construction and the growth B.C. companies specializing in wood prefabrication, there is an opportunity for B.C.’s forestry sector to meet the growing needs of this U.K. industry.

Similar to Canada and B.C., the U.K. government has made commitments to building new homes. The U.K. government has set the target of 1.5 million new housing starts over five years, which would be a more than 50% increase in construction over this period. The U.K. government is also committed to retrofitting its aging housing stock and has made commitments to building more social housing.

Beneficial trading relationship with the United Kingdom

Canada and the U.K. have signed the Canada-UK Trade Continuity Agreement, following the U.K.’s departure from the European Union. As of Jan. 1, 2024, 99% of tariffs between Canada and the U.K. have been eliminated, including no tariffs on softwood lumber and forest products from Canada.