Forest Sector reacts to Federal Spring Economic Update
The Canadian forest sector is weathering a perfect storm, facing three years of soft markets, protracted geopolitical conflicts and instability in global markets, and combined tariffs and duties averaging 45% on Canadian softwood lumber products entering the US.
“While we welcome the measures to improve the speed at which we can build homes, through code and regulatory improvements for modern methods of construction, we still need a clear signal that Canada intends to be a more competitive place for forest sector investment — more responsive regulation, improved transportation supply chain performance, and tax and investment tools that accelerate the use of Canadian wood products here at home while helping companies modernize facilities and keep people working,” said Derek Nighbor, FPAC President and CEO.
“We look forward to Minister Hodgson’s release of the Forest Sector Transformation Task Force report, which should provide a much-needed blueprint for enhancing competitiveness and ensuring long-term growth and stability.”
One year into the current federal government’s mandate, the sector acknowledges positive steps: liquidity measures, efforts to boost home building, and increased use of Canadian-grown wood in government procurement. Yet, much work remains to safeguard and grow Canada’s forest sector and the communities that depend on it.
A modern, negotiated softwood lumber agreement remains the best path to stability with the United States. But Canada also needs to focus on areas within its control at home: improving domestic competitiveness, expanding export markets, and strengthening transportation links.
Read more
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About FPAC
FPAC provides a voice for Canada’s wood, pulp, and paper producers nationally and internationally in government, trade, and environmental affairs. As an industry, we contributed $19.9B in real GDP in 2025.
Canada's forest products sector is one of the country’s largest employers—providing nearly 200,000 direct jobs and operating in hundreds of communities across the country. Our members are committed to collaborating with Indigenous leaders, government bodies, and other key stakeholders to develop across-Canada action plan aimed at advancing forest health, while supporting workers, communities and our environment for the long term.
