Canada Announced Huge Federal Support for Softwood Lumber Industry
Rubber and Wood | 2025-08-06 12:45:32
As per the announcement, a sum of up to $700 million will be spent in loan guarantees for forestry companies.
By Paul Ploumis
SEATTLE (Scrap Monster): Canadian Prime Minister Mark Carney announced $1.2 billion in federal support for the struggling softwood lumber industry.
How the $1.2 billion will be distributed?
According to the announcement, forestry companies will receive loan guarantees totaling up to $700 million. Additionally, $500 million will be provided, mostly in grants and donations that will support the lumber industry's efforts to develop new products and enter new markets, which will assist to secure hundreds of jobs.
B.C. welcomes the decision
Both the province's forest minister and the forestry business in British Columbia enthusiastically embraced the federal government's financing offer. The administration of British Columbia has previously charged that the federal government was neglecting the province's lumber industry's difficulties, particularly in the wake of higher import duties from the United States.
Thousands of jobs have already been lost as a result of the difficult lumber market conditions. Furthermore, the export sector has suffered greatly in recent years due to the difficulty of exporting to the United States.
Given the magnitude of the province's softwood lumber business, B.C. Forests Minister Ravi Parmar stated that the province will endeavor to guarantee that it receives an equitable portion of the capital investment.
Best short-term solution, says analysts
Analysts welcomed the decision in the interim, arguing that the best short-term solution will be to remove the industry's obstacles to U.S. exports.
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