Tuesday August 5, 2025 | WEST KELOWNA, BC
by Mary P Brooke | Island Social Trends
Prime Minister Mark Carney was at a softwood lumber processing facility in West Kelowna today to make an announcement about new measures to transform Canada’s softwood lumber industry.
He was accompanied at the podium today by Minister of Energy and Natural Resources, Tim Hodgson. Behind them were several softwood lumber workers at Gorman Bros Lumber Ltd.
Carney met on Sunday with Premier David Eby to discuss softwood lumber and trade strategies.
Continued negotiations:
In a fundamentally changed global trade landscape, Carney and his ministers continue to negotiate with the United States administration to try and protect Canada against economic impacts from the United States. Part of that is about reshaping and rebuilding the Canadian economy to be less dependent on exports to the United States.
Comprehensive industrial strategy:
Still using the phrase “Canada’s new government”, the Carney Liberal government is developing what they are calling “a comprehensive industrial strategy”.
That includes investing in domestic production, developing Canadian expertise, supporting Canadian companies to retool and reinvest, and helping industries pivot to a growing Canadian market and those of new, reliable trading partners around the world.
New measures get sector support:
A series of new measures was announced today, aimed at helping the softwood lumber industry transform to remain competitive.
Support for the new measures has been expressed by the BC Lumber Trade Council (noting ongoing trade uncertainty and the measures are timely) and by the BC Council of Forest Industries (saying the promised investments lay the foundation for long-term competitiveness).
Details:
The federal government measures will help unlock the full potential of the industry as the federal government hopes to see a scaling up of housing and major infrastructure construction to drive long-term economic growth, rooted in Canadian resources and innovation.
Canada’s new government will:
- Provide up to $700 million in loan guarantees to address the immediate pressures facing the softwood lumber sector. This will ensure companies have the financing and credit support they need to maintain and restructure their operations during this period of transformation.
- Invest $500 million to supercharge product and market diversification to make theindustry more competitive for the long-term. As technology changes the way we build and demand grows for softwood lumber, this will increase domestic processing and value-added production. This investment will also include initiatives that support Indigenous-led forestry business development and diversification.
- Build Canadian by prioritizing Canadian materials in construction and changing federal procurement processes to require companies contracting with the federal government to source Canadian lumber. As the government delivers on its mandate to build major infrastructure projects faster and to increase the pace of homebuilding to nearly 500,000 new homes per year over the next decade, we will ensure Canadian lumber and other Canadian materials are prioritized in that construction. Once established, Build Canada Homes will provide financing to innovative private sector home builders in Canada that use Canadian technologies and resources, like mass timber and softwood lumber.
- Diversify international markets for Canada’s sustainably sourced forest products. We will launch a new initiative to diversify exports of Canadian wood products, including the reinvigoration of federal programming to expand offshore markets for sustainable, innovative, high-quality products. In fast-growing regions with rising demand for housing and other buildings, we will promote Canadian lumber as an affordable, sustainable solution.
- Provide $50 million for upskilling, reskilling, and income supports for more than6,000affected 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. Through this investment, we will equip workers with the tools and training they need to stay competitive – helping them adapt to new technologies, strengthen their expertise, and excel in changing industries.
Canada’s economy is shifting from reliance to resilience. During this time of transformation, these measures will ensure Canada’s softwood lumber industry and workers are able to adapt and emerge even stronger.
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