Federal Government Rolls Out Major Support Package for Forestry Sector
Prime Minister Mark Carney has unveiled a substantial new support package for Canada's forestry industry, providing welcomed relief to British Columbia's struggling forest sector while stopping short of achieving a new softwood lumber agreement with the United States. The announcement, made Wednesday in Ottawa, comes as the Canada-U.S. softwood lumber dispute enters its eighth year amid escalating trade tensions under U.S. President Donald Trump's administration.
Key Components of the Forestry Support Package
The comprehensive plan includes $500 million in new funding for the forestry loan program administered by the Business Development Bank of Canada, significantly expanding the softwood lumber guarantee program. Additionally, the government will allocate another $500 million from existing federal loan facilities to assist large businesses with liquidity challenges.
Other significant measures include the creation of a single-window application system for all federal support programs, making it easier for companies to access assistance. The package also extends rail freight subsidies covering half the cost for lumber producers shipping products interprovincially with CN and CPKC railways. Furthermore, the work-sharing program will see income-replacement ratios increase to 70 percent from the previous 55 percent.
Industry Response and Remaining Challenges
B.C.'s forest sector has responded positively to the measures, with Kim Haakstad, CEO of B.C.'s Council of Forest Industries, acknowledging that while the support doesn't resolve the fundamental trade issues, it represents important recognition of forestry's role in Canada's economic strength. Haakstad noted that industry representatives continue to emphasize that a negotiated resolution with the United States remains the ultimate necessity for their companies.
In Victoria, B.C. Forest Minister Ravi Parmar welcomed Carney's commitment to establish a forest sector transformation task force among the announced measures. The federal support extends beyond forestry to include steel and aluminum producers - industries similarly impacted by Trump's tariffs and trade policies.
Prime Minister Carney stated that the goal of his 2025 budget is to stimulate new investment to strengthen the domestic economy, but emphasized that protecting workers and industries most exposed to tariffs remains an immediate priority. The package reflects the government's strategy to bolster key sectors during ongoing trade uncertainties while continuing to pursue diplomatic solutions to longstanding disputes.
