BURSTB.C. ministers expressed conflicting feelings about a range of tariff response measures announced by the federal government on Wednesday, Nov. 25.
On the one hand, an additional $1 billion is being offered to support the forest industry, which faces 45 per cent combined tariffs and duties on softwood lumber.
The money for lumber is split into two $500 million funds, one for a loan program for companies through the Business Development Bank of Canada, and the other through a tariff loan program. This money comes in addition to $1.2 billion in previously announced support.
It is not known how much of this money will wind up in B.C. Forests Minister Ravi Parmar reckons that if it is fairly distributed, B.C. would get about 50 per cent.
Parmar applauded this extra support being announced so soon after federal tariff envoy Dominic LeBlanc came to B.C. for a forestry summit.
“To be able to have the federal government come, participate in the summit that the premier led — for them to go back and within weeks come back and make some substantive announcements, is a good start,” Parmar said.
But Ravi Kahlon, B.C.’s jobs minister, said that while he is pleased about the lumber supports, he has serious concerns about the federal government tightening steel tariffs.
Kahlon said steel arriving on a barge from Asia costs $35 per ton, but as much as $200 per ton when shipped from Ontario by rail.
“The federal government appears to be making a policy in Ontario for Ontario around steel and not reflecting the challenges that are faced in British Columbia,” Kahlon said.
The federal government also committed to reducing rail freight rates for lumber and steel by 50 per cent. While this doesn’t lower the cost enough to meet Kahlon’s estimates of steel imported from Asia, it should help. And Parmar said it will help he lumber industry remain competitive.
“The biggest win for British Columbia is the reduction in freight costs,” Parmar said. “That was a direct result of Premier [David] Eby and his advocacy.”
In addition, the federal government is creating a one-stop, one-window application process for forestry companies to access support.
The B.C. Lumber Trade Council and the B.C. Council of Forest Industries both welcomed the announcement, cautioning that the effectiveness of the new measures will depend on how quickly support reaches operators on the ground, and whether the federal government can find a long-term solution to U.S. trade actions.
B.C. Conservative Leader John Rustad said the provincial government can help by reducing permitting times and making it easier for companies to access economically viable timber. He also said the federal government needs to fight harder against the U.S. using softwood lumber as an “economic weapon.”
“That is not right. It’s not fair,” Rustad said. “It should not be allowed to stand, and we need a government that will actually stand up and fight against it.”