Natural Resources

The House of Commons Standing Committee on Natural Resources met to study the state of the forestry sector amid the ongoing trade dispute with the United States. Witnesses included representatives from the Canadian Wood Pallet and Container Association, the Forest Products Association of Canada, Chantiers Chibougamau, the Quebec Forest Industry Council, and Unifor.

Scott Geffros, CEO of the Canadian Wood Pallet and Container Association, described his sector as the backbone of the supply chain, noting that 80% of Canadian wood packaging uses low-grade softwood lumber, which helps mill profitability. He recommended that assembled wood packaging be excluded from any future softwood lumber agreement or CUSMA negotiations, and that it be recognized as critical infrastructure. He also called for government support to modernize production for European metric-dimension pallets, and for better enforcement of the ISPM 15 phytosanitary program by the Canadian Food Inspection Agency.

Derek Nighbor, President and CEO of the Forest Products Association of Canada, reported that the sector has lost about 2,000 jobs since April due to combined U.S. duties and tariffs exceeding 45%. He urged a team Canada approach that prioritizes lumber in negotiations, criticized the government for not mentioning forestry alongside steel, aluminum, and energy in recent trade talks, and asked for a formal consultation table with industry and labour. He recommended a one-window access point for federal support programs, faster rollout of the $500-million NRCan fund, and expanded supports for contractors and workers if the dispute drags on.

Frédéric Verreault, Vice President of Corporate Affairs at Chantiers Chibougamau, described his company as a major producer of softwood lumber and engineered wood products, and warned that subcontractors are the most vulnerable link in the supply chain. He explained that the current BDC loan guarantee program does not meet his company’s needs because the core problem is diverted revenue, not lack of credit. He proposed that the federal government buy back 50% of the countervailing and anti-dumping duties paid to the U.S. Treasury each month, arguing this would keep mills operating at no net cost to government, and he committed to submitting a detailed proposal to the committee.

Michel Vincent, Chief Economist of the Quebec Forest Industry Council, stated that sawmills are absorbing over 80% of the 45% duty rate, threatening closures that could cascade to pulp and paper mills due to lost chip supply. He supported the goal of building 500,000 homes per year in Canada, noting that redirecting 2 to 2.5 billion board feet to the domestic market would significantly pressure U.S. prices. He asked the government to treat forestry on par with aluminum and steel and to succeed in including softwood lumber in the next CUSMA agreement, something past governments have failed to achieve.

Daniel Cloutier, Quebec Director of Unifor, speaking on behalf of the union’s 24,000 forestry members, emphasized that workers are facing slowdowns, stoppages, and closures, and that many have exhausted employment insurance. He endorsed the proposal to buy back 50% of monthly duties, saying it would keep people working and avoid losing skilled workers permanently. He also called for enhanced income support beyond EI, an exceptional revision of the National Building Code to increase wood use in commercial and institutional buildings, recognition of embodied carbon in regulations, and targeted investments to convert production sites for higher-value domestic manufacturing.

Simon Lavigne, National Representative in Unifor’s Research Department, added that diversifying export markets is complex and slow, so the priority should be building Canadian demand through public policy. He supported a national residential construction project and stronger Canadian purchasing policies, and stressed the need to retain current workers in remote regions through income security, as they will be hard to replace when markets recover.

The committee also heard a brief exchange on Bill C-5, with a member asking whether workers were consulted before land was locked up under that legislation; Unifor responded that sustainable development and industrial activity can coexist. No procedural motions or votes were recorded during this meeting.