PRIME Minister Mark Carney on Tuesday announced a series of new measures to help the softwood lumber industry transform to remain competitive.

“These measures will help unlock the full potential of the industry as we scale up housing and major infrastructure construction and drive long-term economic growth, rooted in Canadian resources and innovation,” he said.

The federal government will:

• Provide up to $700 million in loan guarantees to address the immediate pressures facing the softwood lumber sector. This will ensure companies have the financing and credit support they need to maintain and restructure their operations during this period of transformation.
• Invest $500 million to supercharge product and market diversification to make the industry more competitive for the long-term. As technology changes the way we build and demand grows for softwood lumber, this will increase domestic processing and value-added production. This investment will also include initiatives that support Indigenous-led forestry business development and diversification.
• Build Canadian by prioritizing Canadian materials in construction and changing federal procurement processes to require companies contracting with the federal government to source Canadian lumber. As the government delivers on its mandate to build major infrastructure projects faster and to increase the pace of homebuilding to nearly 500,000 new homes per year over the next decade, we will ensure Canadian lumber and other Canadian materials are prioritized in that construction. Once established, Build Canada Homes will provide financing to innovative private sector home builders in Canada that use Canadian technologies and resources, like mass timber and softwood lumber.
• Diversify international markets for Canada’s sustainably sourced forest products. We will launch a new initiative to diversify exports of Canadian wood products, including the reinvigoration of federal programming to expand offshore markets for sustainable, innovative, high-quality products. In fast-growing regions with rising demand for housing and other buildings, we will promote Canadian lumber as an affordable, sustainable solution.
• Provide $50 million for upskilling, reskilling, and income supports for more than 6,000 affected softwood lumber workers through the Labour Market Development Agreements. This investment builds on temporary enhancements to the Employment Insurance (EI) program and the EI Work-Sharing program. Through this investment, we will equip workers with the tools and training they need to stay competitive – helping them adapt to new technologies, strengthen their expertise, and excel in changing industries.

Carney said: “The forest sector is a pillar of Canada’s economy. As we shift from reliance to resilience, Canada’s new government will ensure the industry can transform to seize new opportunities in Canadian and international markets. In the face of a changing global landscape, we are focused on what we can control – building Canada strong with Canadian expertise, using Canadian lumber.”

“Canada’s forestry sector is a cornerstone of our economy. It supports nearly 200,000 good jobs in both urban and rural communities and accounts for billions in contribution to Canada’s GDP and exports every year. Through the actions announced today and existing supports, we are committed to protecting this key industry and the workers who power it,” said François-Philippe Champagne, federal Minister of Finance and National Revenue.

“Today’s announcement showcases the Government of Canada’s steadfast commitment to supporting the Canadian economy and the workers who keep it strong. By bolstering this key industry and ensuring resilient supply chains, we stand with the industry, its workers, and communities to keep Canada a trusted global trade partner,” said Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions.

THE BC Council of Forest Industries (COFI) welcomed Carney’s announcement, saying that  while securing a long-term agreement to resolve the ongoing trade dispute must remain a top national priority, these supports provide critical relief during an exceptionally challenging time.

“This support comes at a critical moment for forestry workers, communities, and companies across the country,” said Kim Haakstad, President and CEO of COFI. “Initiatives aimed at supporting workers, fostering innovation, enhancing liquidity, and promoting export development through organizations like Canada Wood are important steps toward stabilizing the sector and supporting government efforts to build more homes for Canadians. These investments also lay the foundation for long-term competitiveness.”

Haakstad noted: “It’s significant that this announcement was made in British Columbia — home to Canada’s largest forest industry — where compounding pressures have been particularly acute.”

COFI said it looked forward to working with the federal government as the details of these programs are developed. With coordinated action, we can build a more competitive, innovative, and resilient forest sector that supports jobs, communities, and climate goals across Canada, it added.

THE BC Lumber Trade Council (BCLTC) welcomed new federal support measures for Canada’s softwood lumber industry, noting that “while resolving the long-running softwood lumber dispute with the United States must remain the government’s top trade priority, interim support is needed to help Canadian producers weather current challenges.”

“We appreciate the federal government’s recognition that support is necessary in the face of ongoing trade uncertainty” said BCLTC President Kurt Niquidet.

The Council pointed to the importance of liquidity assistance and help for forestry workers at a time when Canadian companies are grappling with competitiveness challenges and unjust duties imposed by the U.S.

“These measures are timely,” Niquidet added. “We look forward to working with federal officials to ensure they are implemented quickly and effectively, and that they reflect the realities facing regions like British Columbia.”

BCLTC also emphasized the importance of aligning near-term support with long-term ambitions such as expanding international market opportunities, and helping meet the country’s growing demand for sustainable, wood-based housing.