China, Scandanavia and large parts of Europe celebrate as the previously announced 80 per cent export tax on raw logs out of Russia was abruptly cancelled this week by President Vladimir Putin. Citing pressure from importing nations and the volatility of the credit market, not to mention the current global economic crisis, Putin put an indefinite hold on the export tax, saying the issue will be revisited sometime next year.

EU leaders have lauded Russia’s decision to postpone the increase in tariffs, while Nordic paper makers and the European Union trade chief praised the move. The wood duties have been one of the points which have kept Russia-EU trade talks in a stalemate. The European Commission had also previously said the timber duties could hamper Russia’s negotiations to join the World Trade Organization.

Following the announcement, other wood producing countries are worried about Putin’s lack of a clearly-defined deadline. Canadian lumber makers had hoped the tax would choke off the more than 60 per cent of China’s log imports that have been coming from Russia. and would create a fierce new hunger for Canadian wood.

In a perhaps fortunate twist of timing, BC’s Minister of Forests and Range Pat Bell heard of the announcement just after stepping onto a plane headed for China with a delegation of a dozen Canadian lumber industry insiders. A quick change of approach had to be made, but in the end there is no question of huge potential for future import of wood products into China.

“It’s disappointing, but it is not by any stretch of the imagination the end of the world,” Bell said in a telephone call to the Vancouver Sun from Beijing. “But the mission is still on.”

“The Chinese are pushing us hard to be here, saying they want to work with us. Likely what will occur now is a more orderly phase-out of Russian wood and a phase-in of Canadian wood.” He stressed to the Vancouver Sun that the Chinese desire for a secure supplier into the future, rather than focusing on the sudden growth he expected before boarding the plane Wednesday.