Carney Announces CA$1.25 Billion to Support Canada’s Softwood Lumber Industry

On Tuesday, Canadian Prime Minister Mark Carney announced a series of new measures to help Canada’s softwood lumber industry transform to remain competitive.

“The global trade landscape has fundamentally changed,” Carney said in a statement. “To meet this moment, Canada’s new government is developing a comprehensive industrial strategy.”

The new initiatives, valued at up to CA$1.25 billion (US$907 million), include the following:

• Up to $700 million in loan guarantees to address immediate financial pressures in the softwood lumber industry.
• A $500 million investment to support product and market diversification. As technology evolves and demand for softwood lumber grows, the funding is intended to boost domestic processing and value-added production to make the industry more competitive in the long term.
• Changes to federal procurement that prioritize Canadian materials in construction. Companies contracting with the federal government will be required to source Canadian lumber. Once established, the Build Canada Homes initiative will offer financing to private-sector homebuilders that use Canadian technologies and resources, including mass timber and softwood lumber.
• A new export diversification program for Canadian wood products. The government will emphasize federal programming to expand offshore markets.
• $50 million in workforce support through the Labor Market Development Agreements, including upskilling, reskilling, and income assistance for more than 6,000 affected softwood lumber workers.