Softwood lumber is Canada's most significant export product. The United States is Canada's largest softwood lumber market. Canada is the United States' most important foreign supplier of softwood lumber.

British Columbia provides about 50% of all Canadian softwood lumber exported to the United States. Softwood lumber is the most significant export product produced in British Columbia. Sales revenues for BC softwood lumber exceeded Cdn. $7 billion in 1999. In that year, more than 70% of BC's softwood lumber exports went to the United States.

The importance of this trading relationship to the United States, Canada and British Columbia means that resolution of the current trade dispute is essential.