Shares of Canadian forestry companies dropped in Toronto on Thursday, with International Forest Products Ltd. shares dropping 3.7 per cent to $7.80, Tembec Inc. shedding 9.52 per cent to $1.90, Canfor Corp. stock shedding 2.6 per cent to $14.36, and West Fraser Timber Co. Ltd. losing 1.27 per cent to $42.70.
BMO Nesbitt Burns analyst Stephen Atkinson said the recouped duty payments are not a "windfall," but rather money that Canadian companies were giving their rivals.
"Why would you give 22 per cent to your competition?" he said. "This money belongs to the companies and their shareholders, and the Canadian government is giving it away."
The framework deal negotiated Wednesday is "negative for many of the Canadian producers" said Robert Duncan, an analyst with MGI Securities.
"I didn't talk to anyone who was happy with it," another analyst, who did not want to be named, said of his discussions with lumber executives.