Wendy Wagner
Uncertainty is rising for Canadian companies as the CUSMA review approaches, with no formal negotiations underway and trade tensions continuing to escalate. A shifting U.S. stance on tariffs and trade policy is adding to concerns about how the agreement could evolve. BNN Bloomberg spoke with Wendy Wagner, head of international trade at Gowling, who says negotiations are unfolding in a more politicized environment, with sector-specific disputes and tariffs shaping the path forward. Key takeaways include:
- The upcoming CUSMA review is taking place without formal talks, increasing uncertainty for businesses
- Sector-specific tariffs remain a major source of tension and economic risk
- Protectionism is changing the nature of negotiations away from traditional free trade principles
- Long-standing and emerging trade irritants are expected to feature prominently in discussions.
- A trilateral approach with Mexico is seen as strategically important to balance U.S. negotiating power
The Trump administration is demanding what amounts to an “entry fee” from Canada to engage in trade talks toward a revised Canada-United States-Mexico Free Trade Agreement (CUSMA), four sources said. “The Americans are setting conditions before negotiations begin,” said one high-ranking individual. The US demand was also confirmed by former Quebec premier Jean Charest, who was appointed to Prime Minister Mark Carney’s new advisory committee on Canada-US economic relations. …On the US side, there are suggestions that Canada should try to get Trump’s attention by making an immediate concession, especially since the president is juggling several major issues right now. However, Canadian sources said they have twice offered concessions to the US administration without receiving anything in return. …Former Canadian diplomat Louise Blais, in her capacity as a strategic advisor to the Canadian Council on International Affairs, said the Americans “perceive Canada as unwilling to come to the table.”
Canada’s new government is forging a new economic and security relationship with the United States. Prime Minister Carney has secured the best deal of any major U.S. trading partner – 85% of our trade with the United States remains tariff-free, the lowest average tariff rate in the world. As Canada approaches the Joint Review of the Canada-United States-Mexico Agreement (CUSMA), our aim is to preserve that unique Canadian advantage and to build on it. To that end, the Prime Minister, Mark Carney, today announced the creation of the new Advisory Committee on Canada-U.S. Economic Relations. The committee will serve as a forum for expertise and strategy on all aspects of the Canada-U.S. economic relationship. The Advisory Committee will include leaders from major sectors of the Canadian economy, representing extensive experience in business, investment, trade, and labour. It will be chaired by the President of the King’s Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy, Dominic LeBlanc.
Researchers at the U.S. Forest Service’s Southern Research Station and Louisiana State University have published a paper that investigates how the European Union Deforestation Regulations could alter global wood pellet trade patterns. The paper is titled “Wood pellet market restructuring under the European Union deforestation regulation: A dynamic spatial equilibrium analysis.” …“Our results suggest the EUDR reallocates global trade rather than reducing global production,” the researchers wrote. While the regulation succeeds in reducing the European Union’s reliance on imports and increases its share of consumption of deforestation-free products, it does not materially lower the total amount of wood pellets produced and burned worldwide. …The main economic result is a shift in trade flows, where pellets that are blocked from the European market are redirected to Asian buyers. …The large production losses projected for the US Southeast, compared to the much smaller losses for Canada.
For the second consecutive month, a leading index reported an increase in North American containerboard pricing. Month-over-month containerboard prices rose $30 per ton in April, following March’s $40 per ton increase, according to monthly data released Friday in Fastmarkets RISI’s Pulp & Paper Week publication. When also taking into consideration the $20 per ton decrease the index reported in February, containerboard pricing has a year-to-date net increase of $50 per ton. …On the boxboard front, most prices remained relatively flat in April. Solid bleached sulfate remains in oversupply, although demand was flat to slightly improved. 
More efficient use of lumber byproducts leads to more sustainable forest management. That’s why Michigan Technological University researchers are developing a biomaterial lighter than steel and just as strong, made from leftover wood waste, that could revolutionize the lumber industry. …Xinfeng Xie, associate professor of forest biomaterials, and his team have partnered with the Defense Advanced Research Projects Agency’s Waste Upcycling for Defense (WUD) program to turn scrap wood into a strong, sustainable building material. …Led by Xie, students began by using a group of wood-decay fungi, also known as xylophagous fungi, to break down lignin, the tough, rigid structural polymer in plant cell walls. This biological approach leaves behind cellulose nanofibers that are stronger than steel, and its only byproducts are carbon dioxide and water. …The project also provides a physical product that has a positive impact on the future of their industry.
“Surely old-growth logging won’t be happening in five years.” That was my belief in 2020, when I was a 17-year-old activist who — almost by accident — helped initiate the Fairy Creek blockades and the largest act of civil disobedience in Canadian history. …In that moment, it seemed inevitable that the old paradigm of forestry in BC would not last. Today, that old paradigm seems more entrenched than ever, with old-growth deferrals getting canceled across the province and an NDP government more focused on short-term economic development than long-term sustainability. …At this moment, the prospect of true forestry reform in BC seems bleak. But Washington protected its state-owned old-growth forests 20 years ago and maintains a thriving forest products industry today. How did they do it? And what can Washington’s success teach us about BC’s forestry predicament?
Autonomous skidders that drag felled trees around logging sites. A database detailing each tree in the forest. A screen that shows loggers which trees to cut and which to leave standing to maximize financial returns decades down the line. Weyerhaeuser, the country’s top logger and one of its oldest companies, is betting artificial intelligence can deliver these and other big changes to American forestry, which has come a long way from oxen and axes. Many applications envisioned by Weyerhaeuser executives are unique to a company that manages timberlands in the US and Canada that together cover an area roughly the size of Indiana. …Among the initiatives is the creation of a digital twin of Weyerhaeuser’s timberlands using satellite imagery, drone photography and lidar. …Weyerhaeuser is also studying semiautonomous logging equipment. At a meeting with investors, executives showed video of a driverless skidder, dragging freshly downed timber around a Southern logging site. [to access the full story a WSJ subscription is required]
Climate change is expected to alter the extent and severity of forest pest damage, with substantial economic and ecological consequences, but predicting future pest impacts is challenging. Here we use 20 years of data to assess how bioclimatic and biotic factors have influenced forest damage by 30 high-impact pest species and to identify ecological signals in those relationships. We found consistency in pest damage responses to maximum temperature in the warmest month, including recent average conditions and shifts from a historical baseline. Mean damage from focal pest species tends to be higher in regions with moderate maximum temperatures and in regions with faster rates of warming. In certain cases, the direction and magnitude of relationships between climate and forest damage vary by pest guild, native status and region of occurrence. Our findings provide empirical support for expectations of climate-induced stress to host trees and temperature-boosted pest performance, leading to increased pest damage in future forests.
Drax has extended its wood pellet shipping contract with Ultrabulk through March 2031, with a mechanism to reduce carbon emissions year on year from sea freight journeys, according to Drax. The agreement follows the first UK arrival of the M.V. Ultra Yorkshire, a Handymax carrier operated by Ultrabulk, which completed its first transatlantic voyage carrying over 29 thousand tonnes of biomass pellets from the Port of Greater Baton Rouge to the Port of Liverpool. The cargo is set for rail transport to Drax Power Station in Selby. …The company estimated the voyage produced around 90% less CO2 than standard maritime fuels such as VLSFO or ULSGO.
NAHUNTA, Ga. — Heavy rain slowed the progress of two sprawling southern Georgia wildfires over the weekend, allowing crews to make some progress in containing the blazes that have destroyed more than 100 homes. Although the rain helped the firefighting efforts, it wasn’t “nearly enough to put the fires out” and crews responded to 10 new blazes throughout the drought-stricken state Sunday, the Georgia Forestry Commission said Monday. …Georgia’s biggest blaze, the Pineland Road Fire, has scorched more than 50 square miles and at least 35 homes… about 35 miles north of Florida, which is also dealing with wildfires. The area has been full of highly combustible dead trees and other vegetation since Hurricane Helene carved a destructive path northward in September of 2024. About 60 miles to the northeast, the Highway 82 Fire has been burning since April 20. It has destroyed at least 87 homes and torched more than 35 square miles. It is only 6% contained.
Wildfires tearing through the south have forced hundreds of Georgia residents to flee in minutes, leaving them distraught about the homes and animals they left behind. The fires that spread this week during an extreme drought in Georgia and Florida have blanketed cities hundreds of miles away in smoke, leading to more air quality warnings on Thursday across the south-east. Driven by strong winds and low humidity, the two biggest fires in southern Georgia have spread rapidly over the past two days and destroyed more than 50 homes in rural areas. But the growing threat led to more evacuations and school closings on Wednesday. “I don’t know if I have a house standing or not,” said Denise Stephens, who was forced to evacuate because of the fast-moving Brantley county fire near Georgia’s coast. “I know what it’s taken from other people, but I don’t know what I have left standing.”
GEORGIA — Smoke has filled the air across parts of the Peach State this week as wildfires continue to burn out of control in southern Georgia, forcing evacuations and destroying homes. According to the Georgia Forestry Commission, crews responded to 34 new wildfires Wednesday that burned about 75 acres statewide. But officials say the biggest concern remains two large, active fires that have already scorched tens of thousands of acres. The Pineland Road Fire in Clinch County has grown to nearly 29,606 acres and is about 10% contained. In Brantley County, the Highway 82 Fire has burned more than 4,400 acres and is roughly 15% contained. Officials say dry conditions, high winds, and a lack of rain are making the fires harder to control. …The growing wildfire threat prompted Brian Kemp to declare a state of emergency, allowing more state and federal resources to assist, including expected support from FEMA.