The forestry industry in British Columbia is facing one of its toughest periods in decades, with mills struggling to stay afloat due to high U.S. tariffs on Canadian softwood. Kim Haakstad, the President and CEO of the B.C. Council of Forest Industries (COFI), describes the current situation as dire, with mills reducing shifts, moving to part-time work, and even shutting down in some cases.
To address the challenges faced by the forestry sector, Prime Minister Mark Carney recently announced a $500 million support package for the Canadian lumber industry. This support includes loan guarantees, tighter quotas on foreign steel imports, new Canadian tariffs on steel, and a “Buy Canadian” policy for federal contracts over $25 million, prioritizing steel and lumber.
In addition to the financial support, Ottawa plans to work with railways to reduce interprovincial freight rates for steel and lumber by 50%, aiming to make it easier for B.C. mills to ship their products and access markets in other provinces.
Kim Haakstad emphasizes the need for swift implementation of the support measures, as delays in the application process have hindered businesses’ ability to make crucial decisions to navigate the current challenges. While she acknowledges the efforts of the federal government in staying connected with the forestry sector, Haakstad also calls for similar action from the provincial government of British Columbia to enhance competitiveness and ensure the industry’s sustainability.
The recent federal support package follows previous commitments of $700 million in loan guarantees and $500 million in long-term support announced earlier this year, indicating a concerted effort to bolster the Canadian forestry industry during these challenging times.