(OTTAWA) Before the latest protectionist assaults in the United States, the Carney government announces that it makes some $ 700 million in loan guarantees available to forest companies in order to support them during this economic turbulence period.
What to know
- The United States announced on Friday the taxation of “anti-dumping” rights of 20.56 % on Canadian lumber;
- Prime Minister Mark Carney proposed a bouquet of measures on Tuesday to support forest companies in the country;
- Among other things, Ottawa offers loan guarantees of $ 700 million.
Passing through Kelowna, British Columbia, where he visited the company Gorman Brothers which employs hundreds of workers in the forest industry, Carney said that this financial aid will be accessible to companies in all sizes in the country.
The Prime Minister also indicated that an additional sum of $ 500 million will be offered to the lumber’s industry in the form of subsidies and contributions to develop new products and find new export markets.
In addition, the federal government is preparing to increase the rate to promote the construction of new housing and it is committed to using only Canadian wood wood.
The objective is ambitious: double the construction of housing to reach 500,000 dwellings per year during the next decade.
“On its own, this figure could double the use of Canadian coniferous boost in new residential construction,” said the Prime Minister.
Also on Tuesday, Carney announced that Ottawa will invest $ 50 million to support the improvement and obtaining new skills to some 6,000 workers who could be affected in the building wood industry.
The announcement of these measures occurs a few days after the United States trade department has decided to increase the “anti-dumping” duties on Canadian timber to 20.56 %.
It also occurs after the St-Michel sawmill, the most important employer in Saint-Michel-des-Saints, in Lanaudière, announced on Friday that it suspended its activities until October 13 in the wake of the new Washington protectionist salve. The company employs 250 workers.
The Quebec Forest Industry Council (CIFQ) praised the measures announced by the Prime Minister. “The CIFQ therefore welcomes the government will to propose solutions aimed at providing liquidity to companies awaiting reimbursement of taxes unjustly paid during the first years of the conflict, but also pending a settlement of this conflict,” the CIFQ said in a statement.
The Association of Forest Products of Canada (APFC) also expressed its satisfaction.
“While the discussions continue, the measures announced […] will help stabilize the sector in the coming months and will achieve our common goals, either build more housing, improve competitiveness, increase production and investment in Canadian operations and develop new long -term markets, “said the president and chief executive officer of the APFC, Derek Nighbor.
In Kelowna, the Prime Minister stressed the importance of the forest industry for the entire Canadian economy.
Photo Darryl Dyck, Canadian Press
Mark Carney meeting workers from the forest industry in Kelowna
“Today, Canada is the second world producer of lumber. We provide 85 % of American imports and represent approximately a quarter of the American market. And this, despite decades of commercial threats from the other side of the border, “he said.
Carney rejected claims by the Trump administration that Canada floods the US timber market. “Canada does not practice lumber dumping in the United States, and we will continue to assert that these current and proposed rights are unjustified,” he said.
But in front of the protectionist wind from the United States, the federal government cannot remain cross-won.
“There are enormous opportunities for the lumber industry, and the investments that we make today will help this sector to grasp them in all possible ways,” said Carney.
As we build this country, we will change the federal government’s supply process in order to demand that companies have contracts with the federal government use Canadian timber
Mark Carney, Prime Minister of Canada
No maintenance with Trump
At a press conference, Mark Carney said he had not had an interview with President of the United States Donald Trump since he carried out his threat to passing customs duties from 25 % to Canadian exports that do not comply with the Canada-States (ACEUM) in Friday.
In an interview with the CBS network as part of the program Face the Nationon Sunday, the Minister responsible for Commerce Canada-United States, Dominic Leblanc, before suggesting that such an interview between the two leaders would take place this week.
“I haven’t talked to the president in recent days. We will speak when it makes sense, ”dropped the Prime Minister in response to a question of a journalist.
Canada-Mexican discussions
The Minister of Foreign Affairs, Anita Anand, and the Minister of Finance, François-Philippe Champagne, are on mission in Mexico (Tuesday and Wednesday) to meet the president Claudia Sheinbaum and discuss economic, trade and security growth. This trip precedes Prime Minister Mark Carney’s planned visit to Mexico to meet Mme Sheinbaum. Mexico is one of Canada’s main business partners for various basic products, including oil and gas, steel and aluminum. Mme Anand and Mr. Champagne also meet Canadian and Mexican business leaders during this two -day trip.
Canadian press
