Canada’s Forest Ministers Say Timber Industry Needs New Approach as Crisis Deepens

Subhadarshi Tripathy

6/5/20262 min read

Canada’s timber industry is facing a turning point, with forest ministers agreeing that the old way of doing business is no longer enough to sustain the sector.

At the end of a Canadian Council of Forest Ministers meeting, federal and provincial officials pointed to a new task force report as a possible foundation for rebuilding the industry. The report says the sector is being held back not only by outside pressures, but also by barriers within Canada.

Corey Hogan, parliamentary secretary for the federal minister of natural resources, said he feels a renewed sense of optimism despite the major challenges facing forestry.

He said tariffs from the United States, combined with global shifts in demand for products such as newsprint, have created a “perfect storm” for the industry.

Report Points to Domestic Barriers

The final report released this week found that some of the biggest obstacles to reviving the forest sector are internal.

Those barriers include excessive regulations, underinvestment in manufacturing, low levels of innovation and weak domestic demand for wood products.

The findings suggest that simply cutting timber and exporting commodity lumber is no longer a reliable path forward for the industry.

Hogan said the federal government plans to respond within days with an action plan that will help shape a national strategy aimed at making the forest sector more resilient and competitive.

B.C. Says Old Export Model No Longer Works

B.C. Forests Minister Ravi Parmar said forest ministers across the country agree that Canada cannot continue relying on traditional commodity lumber sales to the United States.

He said the industry must move away from models where Canadian producers are competing directly with lower-cost jurisdictions in areas such as pulp production.

Parmar said Canada cannot keep trying to compete with countries such as Indonesia and Brazil on those products, because the current approach is not working.

Push for Investment and Collaboration

For British Columbia, where forestry remains a key economic sector, Parmar said the task force report signals a willingness from the federal government to work more closely with provinces and territories.

He said B.C. is eager to be at the table to access federal support, defend forestry workers and help move the sector in a new direction.

The coming federal action plan is expected to outline how Ottawa intends to address the barriers identified in the report.

For forest-dependent communities, the question now is whether governments can move quickly enough to modernize the industry, increase investment and create stronger domestic demand before more jobs and operations are lost.

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