OTTAWA — Prime Minister Mark Carney has introduced a series of initiatives aimed at bolstering Canada’s softwood lumber industry, which is facing significant duty increases from the United States. The Canadian government plans to provide $700 million in loan guarantees to help companies affected by trade pressures to maintain and restructure their operations. Additionally, the government will allocate $500 million in grants to enhance the competitiveness of the softwood lumber sector and to promote domestic processing and production.

During a news conference in Kelowna, B.C., Carney emphasized the importance of using Canadian lumber in federal contracts. He linked this commitment to his broader goal of advancing resource and infrastructure projects that benefit the nation. The prime minister also announced plans to diversify international exports of Canadian forest products and set aside $50 million for training and support for workers in the lumber industry.

"Over the course of the last four decades, the United States has alternated between confrontation and collaboration, frequently applying unfounded countervailing and anti-dumping duties against Canadian softwood and then signing formal agreements that benefited businesses, workers and homeowners on both sides of the border," Carney stated. He added, "Let’s be clear: Canada does not dump lumber into the United States, and we will continue to make the case that these current and proposed duties are unjustified."

Carney noted that the ongoing disputes regarding softwood lumber are part of a larger trend, with American trade pressures becoming more intense and widespread. He pointed out that the U.S. is undergoing significant changes in its trading relationships.

In late July, the U.S. Commerce Department raised anti-dumping duties on Canadian softwood to 20.56 percent. An anticipated increase in countervailing duties could push the total duties faced by some Canadian companies to over 34 percent.

Carney reaffirmed Canada’s commitment to the Canada-U.S.-Mexico Agreement (CUSMA) despite recent tariff increases imposed by U.S. President Donald Trump. Trump recently signed an executive order raising tariffs on Canadian goods that do not comply with the trade agreement to 35 percent after the two countries failed to reach a new economic and security deal by an August 1 deadline.

"Canada remains committed to CUSMA for the stability and the prosperity it provides on both sides of the border, and will continue to engage in constructive trade negotiations with the United States in the pursuit of the best deal for both sides," Carney said.