Region Archives: Canada East

Representatives for two large exporters in Nova Scotia say they’re ready for U.S. import tariffs, even though they were delayed on Monday just before they were to be implemented. Mike Hartery, co-manager of the Port Hawkesbury Paper mill, said the company had been waiting Monday afternoon to find out if the promised 25 per cent import tariff would kick in on Tuesday. …Hartery said tariffs would drive up paper prices for American customers and could force those buyers to scale back their orders from Canada. He said the mill is scrutinizing its costs, which could mean buying less wood from suppliers in Nova Scotia forests. …The company will press ahead with a $400-million investment in a stand-alone wind power project to supply the mill with electricity, but that does not mean the company expects tariffs, if implemented, to be temporary.

Additional coverage in CTV by Emma Convey: Atlantic Canadian forestry sector concerned with impact of tariffs

Audra Denny

OTTAWA, Ontario — The Wood Manufacturing Council announced the appointment of Audra Denny to the role of president. Denny, who most recently served as executive director of the Architectural Woodwork Manufacturers Association of Canada, will be responsible for the effective and efficient management of the WMC, ensuring the execution of the board’s strategic direction and policies to achieve desired outcomes. …Denny succeeds Lynn MacKinlay, who returned to Georgian College in Barrie, Ontario, as the coordinator of Carpentry and Renovation Techniques, and Cabinetmaking Techniques. The WMC is a non-profit corporation that works to bring together stakeholders in advanced wood processing to help collectively address human resource and skills development issues in the sector.

While a 30-day postponement of U.S. tariffs on Canadian goods has paused an escalating trade war, there is still concern in Northwestern Ontario. Thunder Bay-Atikokan MPP Kevin Holland said the proposed 25 per cent tariffs could have a devastating effect on the Canadian forestry industry. “I’m concerned,” Holland said. “We’re at almost 15 per cent tariffs on softwood lumber and by example, there’s talk that in the Quarter Three of 2025, the U.S. is looking at doubling that. Then put another 25 per cent on and we’re going to have 55 per cent tariffs on softwood lumber.” …“They need Canadian lumber and we need to make sure that we’re communicating the importance of the partnership [and its value] for both countries.” “A 25 per cent across-the-board tariff will result in significant economic effects,” Economist Di Matteo said. “In Northern Ontario, the resource sector will particularly be affected — forestry and mining.”

As Ontario braces for a snap provincial election called by Premier Doug Ford, the languishing forest industry in rural and Northern Ontario remains a critical yet overlooked issue. The closure of major pulp mills in Espanola and Terrace Bay have dealt a severe blow to the region’s economy, with far-reaching consequences that demand immediate attention. …With only two pulp mills remaining operational in Ontario, the forest sector is at a critical juncture. The lack of product diversity and mutual support among mills threatens the survival of the entire industry. …While the cost of rebuilding these facilities would be substantial—estimated at over $500 million each—it also opens the door for modernization and innovation. Ontario now has a unique chance to re-imagine its forest sector, potentially introducing new, state-of-the-art pulp mills. …Such an investment would not only revitalize the forest industry but also provide a much-needed economic boost to Northern Ontario.

In the face of threats of U.S. tariffs on Canadian goods, Kruger-owned Corner Brook Pulp & Paper on Newfoundland’s west coast is looking at a redux from seven years ago when tariffs were slapped on its newsprint. However, advocates say the situation will be different this time around. This isn’t the first time the company has faced down tariffs implemented by Donald Trump. In 2018 the mill was hit with an export duty of 9.93 per cent on groundwood paper, followed by a 22 per cent anti-dumping duty, for a combined 32 per cent. Kruger stood to lose about $30 million a year, though the tariff was eventually overturned. But as a result, the company began to look away from selling south of the border and instead to markets in India to avoid fees. Kruger spokesperson Marie-Claude Tremblay refused an interview request from CBC on how the company could be impacted in the latest round of tariffs…

TORONTO – In the face of rising international protectionism and the looming threat of U.S. tariffs, the Ontario Chamber of Commerce has launched the Ontario Business & Trade Leadership Coalition (OBTLC). This Coalition unites leaders from key trade-dependent sectors to… advocate for effective government policies and solidify Ontario’s position as a global leader in trade. “President Trump has claimed the U.S. doesn’t need Canada – but we are here to show just how invaluable we are. …The Ontario Business & Trade Leadership Coalition represents a united response,” said Daniel Tisch, President and CEO of the Ontario Chamber of Commerce. …Ian Dunn, R.P.F., President & CEO, Ontario Forest Industries Association said, “Ontario’s forest sector is highly exposed to trade, employing 137,000 people in northern, rural, and Indigenous communities. We are united with our colleagues throughout the province to protect our industries and the communities that rely on their success.” 

The Nova Scotia government has a green light from Ottawa for its $425-million plan to remediate Boat Harbour, but it comes with a long list of conditions that includes continuing to look for another site to store contaminated sludge in the long term. Federal Environment Minister Steven Guilbeault issued his decision last Friday following an environmental assessment by the Impact Assessment Agency of Canada, work that began almost six years ago for the cleanup of the body of water near Pictou Landing First Nation that for decades received effluent from the Northern Pulp mill. Under terms of the approval, an existing on-site hazardous waste containment facility would be vertically expanded. …The cleanup project follows the shutdown of the former Northern Pulp mill at Abercrombie Point in 2020. …Northern Pulp’s parent company is currently exploring the potential of establishing a new operation in the Liverpool area.

The Ontario government is stepping up to protect Ontario workers in the face of potential American tariffs on Canadian goods by investing an additional $100 million in the province’s Skills Development Fund (SDF) Training Stream, bringing the total provincial investment in SDF to $1.5 billion. This investment will support workers in fields including manufacturing, construction, critical mineral extraction and other skilled trades, providing them with the skills and training they need to secure better jobs and bigger paycheques while protecting Ontario’s economy… “The Ontario Forest Industries Association welcomes additional investment in the Skills Development Fund,” said Ian Dunn, President & CEO. “This commitment will help ensure workers in Ontario’s forestry sector—and across the province—are equipped with the skills and training needed to thrive in an increasingly competitive global market. By investing in our forestry workforce, Premier Ford’s government is strengthening our economy and supporting industries that are vital to Ontario’s growth and resilience.”

KAPUSKASING — The Ontario government is providing a $10 million loan to Kap Paper Inc., protecting approximately 2,500 jobs in Kapuskasing and the surrounding region which depend on the company’s ongoing operation. “Our government is ensuring Ontario’s world-class forest sector continues to build prosperity for Northern workers, families and communities,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “This financial support delivers on our government’s commitment to forest sector success by protecting jobs and maintaining productivity in Kapuskasing.” Kap Paper is a key employer for Kapuskasing and a vital part of Ontario’s forest sector supply chain. Operations at three nearby sawmills depend on Kap Paper to provide demand for mill by-products generated by lumber production. …The loan will support Kap Paper’s ongoing operation during challenging market conditions.

Toronto, Ont.—Ontario Regional Chief Abram Benedict has issued a statement on the relationship between Canada and the United States: I wish to congratulate President Donald Trump on his recent election. I also want to make clear to his government, all levels of Canadian governments, and to Ontario First Nations Leadership, that the Chiefs of Ontario will continue to advocate for the rights and interests of all 133 First Nations in Ontario. …President Trump has made threats to Canada, including annexation of the country and coercion through economic force. For First Nations, it echoes the colonial rhetoric that we’ve dealt with for centuries. …Engaging in costly economic confrontations or extracting natural resources cannot come at the expense of First Nations’ inherent and Treaty rights nor our sovereignty. Rather, it must be done in collaboration and with the spirit of reconciliation. There are no natural resources in this country that are not on First Nations’ lands. 

AV Group Canada, which runs pulps mills in Nackawic, just west of Fredericton, and in Atholville near Campbellton in the province’s north, warns that NB Power’s rates are making it uncompetitive against other firms around the world. Irving Paper says it will reduce operations at its Saint John mill again by half, to deal with the high electricity cost, for an undetermined period. “The current situation regarding escalating power costs… has serious consequences for our facilities,” said Mike Legere, for AV Group Canada. The company employs 1,200, making it the dominant player in both small towns. Energy makes up one-quarter of AV’s input costs at its pulp mills, second only to wood fibre, he said. …And Irving Paper said it welcomed the third-party audit. Since last April, when rates went up, it has warned that New Brunswick’s industrial rates are having a negative impact on the provincial economy. 

QUÉBEC – The Port of Québec’s Board of Directors is pleased to announce the appointment of Olga Farman as CEO, succeeding Mario Girard’s fourteen-year service in that position. As a member of the Board since 2020 and its Chair since last June, Me Farman, who will take office on February 1, 2025, understands the realities and challenges of the Port. …Ms Olga Farman was a corporate lawyer, until very recently, the managing partner of the Québec office of Norton Rose Fulbright Canada. She is also a member of the Board of Directors of the Caisse de dépôt et placement du Québec, Beneva, insurance & financial services, and the Fondation du Musée de la civilisation de Québec. Ms. Farman is a member of the Québec Bar and holds a Bachelor of Laws (LLB) degree and an MBA from Université Laval. She has received multiple awards and distinctions throughout her remarkable career.

NOVA SCOTIA — U.S. President Donald Trump has only been back in office for a day, but he’s already suggested moving ahead with 25 per cent tariffs on Canadian imports. “I’m not sure anybody knows what the impact would be,” said Robin Wilber, Elmsdale Lumber Company president. “Everybody’s coming up with their own thoughts on it, but I think that will remain to be seen, but I know it will be huge.”Elmsdale Lumber Company produces 30 million board feet of spruce lumber each year. Most of it stays in the Maritimes, but Wilber said some is shipped to the United States. Nova Scotia is currently exempt from American softwood lumber duties, but Wilber worries that could change. “We run the risk of losing that exclusion, and that would be massive.” He said Canadians won’t be the only one impacted by the proposed tariffs. It could also cause major issues for American consumers…

U.S. President Donald Trump did not announce any tariffs against Canada during his inauguration on Monday but mused late in the day about introducing them on Feb. 1. …Almost half of the wood that is harvested from their woodlots in northern Nova Scotia ends up being exported to the U.S. “Any more downward pressure, I don’t know how much more we could take before it makes sense just not to cut wood,” Greg Watson said. …Forest Nova Scotia estimates the industry exports about $600 million in forest products to the U.S. every year. It estimates the implementation of tariffs could carry a severe impact. “You would see businesses go out of business,” said Todd Burgess, the organization’s executive director. “You would see contractors go out of business. You would see job losses. You would see mills curtail their production.”

RAPIDES-DES-JOACHIMS, Quebec – Commonwealth Plywood, originally expected to close in December 2024, continues to operate into 2025, but its long-term future remains uncertain as the company evaluates its viability on a monthly basis. While the mill’s continued operation has brought relief to the local community, significant challenges persist. Joël Quevillon, VP of forestry at Commonwealth Plywood said, “The situation is reviewed monthly, but we hope to continue until spring,” Quevillon wrote. “Our ability to operate depends on fibre availability, fibre costs, the market price for our products—primarily white and red pine—and the mill’s performance.” He noted improved performance during late 2024 allowed operations to extend into the new year. …While the company hasn’t requested financial assistance, Quevillon acknowledged the precarious situation. “We’ve had to issue closure notices to employees because the necessary changes aren’t happening quickly enough,” he said.

New Brunswick’s J.D. Irving Limited is calling on the province’s labour board to block the workers at one of its sawmills from being represented by a union it says actively lobbies in favour of punishing tariffs on Canadian lumber at the border. …It makes that argument in a reply to an application for union certification that states that the United Brotherhood of Carpenters and Joiners of America, Local 683, is seeking to represent 321 employees at its at its Chipman Grand Lake Timber mill. The carpenters’ union is denying J.D. Irving’s allegations. In a statement, it said Local 683 “opposes tariffs on softwood lumber”. …workers at the Chipman mill already have a union representing them. …Unifor added that the carpenters and joiners of America are now “attempting to raid this local. …Trump also said he plans to use ‘economic force’ to annex Canada, so the timing is suspicious for an American labour union that has previously spoken in favour of lumber tariffs to be raiding Canadian forestry workplaces.” [A subscription to the Telegraph-Journal is required to read the full story]

HALIFAX – A Cape Breton paper mill says a federal investment in 24 new wind turbines completes the financing of a project that will secure its future electricity needs. The Canada Infrastructure Bank has announced it will provide $224.2 million in loans for Port Hawkesbury Paper Wind Ltd, which will supply about 60% of the average annual power needs of its sister company, Port Hawkesbury Paper. Nigel Cave, the VP of Stern Partners, said that the $450 million project, called Goose Harbour Lake wind farm, is now fully financed. The wind farm, which will be 10 per cent owned by 13 Mi’kmaq First Nations, will be capable of generating 168 megawatts of electricity once the turbines begin operating in late fall 2026. …In total, the wind farm is expected to reduce greenhouse gas emissions by more than 350,000 tonnes a year, equivalent to 2.4 per cent of Nova Scotia’s emissions in 2021.

Additional coverage in the Guysborough Journal, by Alec Bruce: Green light for $450M Goose Harbour Wind Farm