OTTAWA, Nov. 27 (Xinhua) -- The Canadian government on Wednesday announced a new package to support the country's struggling softwood lumber industry, which currently faces high U.S. tariffs and a wave of facility closures.
The new measures aim to protect jobs and ensure liquidity for the sector, which contributed more than 21 billion Canadian dollars (about 15 billion U.S. dollars) to the national economy in 2024, according to a news release from the prime minister's official website.
In addition to the 700 million Canadian dollars (about 500 million U.S. dollars) in loan guarantees announced in August for the Business Development Bank of Canada Softwood Lumber Guarantee Program, the government will provide a further 500 million Canadian dollars (about 350 million U.S. dollars) to sustain the program into 2026, ensuring companies have the financing and credit support needed to maintain and restructure operations.
Other key financial supports include a new "Buy Canadian Policy" for federal contracts exceeding 25 million Canadian dollars (about 18 million U.S. dollars) to stimulate domestic demand, and a 50 percent freight rate discount on interprovincial lumber shipments starting in Spring 2026 to improve transportation affordability.
The government also launched the Canadian Forest Sector Transformation Task Force, which is to seek input from provinces, territories and industry stakeholders within 90 days on how to restructure the softwood lumber industry to maintain long-term competitiveness.
Most Canadian softwood lumber exports to the United States are currently subject to a combined duty rate of 45.6 percent. Since 2022, 22 mills have closed and more than 50 have reduced operations, directly affecting over 5,600 workers. ■
