Abstract
To contribute towards a better understanding of the evolving relationships between international trade relations and regional industrial adjustment the author examines the implications of the Canada-US softwood lumber dispute that occurred during the 1980s for the softwood lumber industry of British Columbia. Conceptually, these implications are discussed within a progressively more focused series of trade-relations contexts based on principles of political economy and which are represented by the concepts of complex interdependence, continentalism, and bargaining. Empirically, it is found that the dispute led to an unanticipated and undesirable outcome for the lumber industry of British Columbia. Paradoxically, the dispute provides further encouragement for the lumber industry to diversify its operations, a trend which can be considered beneficial.

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