Pm Carney: Transforming Canada's Softwood Lumber Industry for a Stronger Economy

Prime minister Carney;
Transforming Canada's Softwood Lumber Industry for a Stronger Economy

As the global trade landscape continues to shift, the Government of Canada is taking proactive measures to ensure the country's softwood lumber industry remains competitive and resilient. Under the leadership of Prime Minister Mark Carney, a comprehensive industrial strategy is being developed to drive long-term economic growth, rooted in Canadian resources and innovation.

Today, Prime Minister Carney announced a series of new measures to support the transformation of the softwood lumber industry, which will help unlock its full potential as Canada scales up housing and major infrastructure construction. These measures will provide critical support to the industry, enabling it to pivot to a growing Canadian market and new, reliable trading partners around the world.

Supporting Industry Transformation

The Government of Canada will provide up to $700 million in loan guarantees to address the immediate pressures facing the softwood lumber sector, ensuring companies have the necessary financing and credit support to maintain and restructure their operations during this period of transformation.

Additionally, a $500 million investment will be made to supercharge product and market diversification, making the industry more competitive for the long-term. This investment will also support Indigenous-led forestry business development and diversification, promoting sustainable forest management practices and economic opportunities for Indigenous communities.

Prioritizing Canadian Materials

To further support the industry, the Government of Canada will prioritize the use of Canadian materials in construction, changing federal procurement processes to require companies contracting with the federal government to source Canadian lumber. This will ensure that Canadian lumber and other Canadian materials are used in major infrastructure projects, supporting domestic production and job creation.

Diversifying International Markets

Canada will launch a new initiative to diversify exports of Canadian wood products, promoting sustainable, innovative, high-quality products in fast-growing regions with rising demand for housing and other buildings. This will help increase exports and reduce reliance on a single market, ensuring the long-term viability of the industry.

Supporting Workers

To support workers affected by the changing landscape, the Government of Canada will invest $50 million in upskilling, reskilling, and income supports for more than 6,000 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, equipping workers with the tools and training they need to stay competitive in a rapidly changing industry.

A Stronger Economy for Canadians

Canada's economy is shifting from reliance to resilience. These measures will ensure Canada's softwood lumber industry and workers are able to adapt and emerge even stronger, driving long-term economic growth and creating opportunities for Canadians across the country.

"Canada's new government is committed to supporting the Canadian economy and the workers who power it," said Prime Minister Mark Carney. "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."

With these measures, Canada's softwood lumber industry will emerge stronger, more competitive, and more sustainable, driving economic growth and creating opportunities for Canadians for generations to come.