New Brunswick’s forestry industry is feeling the pain of U.S. tariffs and the difficult economic environment, leading stakeholders to say Ottawa’s $500 million in support isn’t enough.
Prime Minister Mark Carney announced supports for the softwood lumber and steel sectors Wednesday amid an ongoing trade war with the United States.
Among the protections, Carney announced $500 million to further support the Softwood Lumber Guarantee Program, which provides companies with government-backed loans.
The loan guarantee will “ensure that companies have the financing and the credit support that they need to maintain and restructure their operations during this period of transformation,” Carney said.
The announcement also includes a new Canadian Forest Sector Transformation Task Force that will seek recommendations from provinces and the industry.
“The Canadian steel and lumber industries will always be at the heart of Canada’s competitiveness, our security and our strength,” said Carney.
U.S. President Donald Trump increased lumber tariffs and duties, which can now add up to 45 per cent.
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Kimberly Jensen, Carleton-Victoria Forest Products Marketing Board manager, says the federal government’s latest move won’t be enough to help New Brunswick’s struggling industries.
“It’s not going to make any difference,” said Jensen. “When you spread that (financial support) across the 10 provinces and the territories, it’s not going to go very far.”
She adds that she and others within the industry are feeling stressed, especially amid recent news that a Maine-based mill stopped purchasing Canadian wood fibre.
“The mills on both sides of the border say this is worse than 2008, the economic downturn then,” she said, adding she’s aware of three long-time producers who have recently decided to leave the industry over the uncertainty.
“Over a period of years, I think what Carney’s doing — you know, reaching across to Europe and the other side to Asia — probably will be in our benefit in the long run, but right now, it’s whoever survives the storm will reap that benefit.”
According to the New Brunswick government, the province’s forestry industry has a total gross domestic product (GDP) contribution of about $1.5 billion annually. It’s estimated one in 17 working New Brunswickers are directly or indirectly employed in the forest sector.
The president of the New Brunswick Federation of Woodlot Owners says the current economic climate is “total chaos.”
“Obviously anybody that’s in business, trying to operate in a chaotic environment like that is very, very difficult,” said said Rick Doucett.
New Brunswick Premier Susan Holt said Wednesday that she hopes to see an update on the U.S. softwood lumber tariffs soon, and is aware of what’s at stake.
“These are companies that are losing business, that are losing clients, and we need to get them the competitive dollars,” she said.
“The prime minister knows that our economy is critical, and we’re talking about a sector that has more employment, and more GDP impact than autos or steel and aluminum.”
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