Kirsten Hillman
Kirsten Hillman, Canada’s longtime ambassador to the United States, is leaving her post in the new year — marking a key shakeup amid tense trade relations with U.S. President Donald Trump’s administration. Hillman announced the move Tuesday, saying she will “remain available” to Canada’s negotiating team as they navigate the potentially rocky period ahead. “It has been the greatest privilege of my professional life to have served and represented Canada and Canadians during this critical period in Canada-U.S. relations,” she wrote. …The lawyer helped the former Liberal government negotiate the updated North American trade agreement — now known north of the border as CUSMA. …She also served as chief negotiator for the Trans-Pacific Partnership. …Mark Wiseman is one name being considered as a replacement for Hillman, but the process hasn’t been finalized, sources told Radio-Canada. Wiseman is a member of Carney’s Canada-U.S. relations advisory council.
The negotiations that remade the North American Free Trade Agreement were, as one participant put it, a series of “near-death” experiences. …In the years since the U.S.M.C.A was signed, Mexico and Canada have become America’s top trading partners. Millions of jobs depend on this economic alliance, which exceeds $1.8 trillion in trade. …Last week, Trump suggested that he would exit the U.S.M.C.A.: “We’ll either let it expire or, well, maybe work out another deal with Mexico and Canada.” Some observers discount Trump’s bluster as mere gamesmanship. …He returned to the White House on a promise to create jobs and lower prices—to make the country “boom like we’ve never boomed before.” Instead, tariffs are fuelling inflation, and many experts believe that it is only a matter of time before the economy starts hemorrhaging jobs. …As in the previous round of negotiations, time does not appear to be on Trump’s side.
As US President Trump sticks with his campaign of tariffs on imports from Canada, some American industries are accusing Canadian competitors of using cheap materials from China in ways that violate free trade rules and undercut U.S. companies. The accusations emerged during recent public hearings in Washington into the future of the Canada-U.S.-Mexico Agreement (CUSMA). …Luke Meisner, counsel for the American Kitchen Cabinet Alliance, told the hearings that Canada and Mexico have become conduits for products from China, circumventing the hefty countervailing duties the US imposed on Chinese-made cabinets and materials in 2020. …Over the past five years, Canada “dramatically increased” its imports of made-in-China cabinets and cabinet materials — such as plywood, medium-density fibreboard (MDF) and moulding — while at the same time boosting exports of finished cabinets to the US, Meisner said. …The Canadian Kitchen Cabinet Association defends its products as Canadian-made.
Over 600 public servants were notified this week that their jobs are on the line, with Natural Resources Canada (NRCan) feeling the brunt of the potential cuts. The Public Service Alliance of Canada (PSAC) said in a news release that 219 workers at NRCan received warning that their position could be cut. In addition, the Professional Institute of the Public Service of Canada (PIPSC) told Radio-Canada that 200 of its members at NRCan were also given notices of a potential layoff. …Jean Bérubé, a forest pathologist at NRCan who is also a union rep for 3,000 federal research scientists, said he was informed his position is being eliminated.The federal government’s cuts to the public service feel similar to those occurring south of the border under the second administration of U.S. President Donald Trump, he said. …Bérubé pointed to the emergence of the invasive Emerald ash borer that has killed millions of ash trees in Canada’s urban areas.
OTTAWA, ON
Montréal, Quebec – Domtar Wood Products announced today a curtailment in its lumber production. Due to challenging market conditions and ongoing economic uncertainty, Domtar will temporarily reduce its lumber production by 100 million board feet for the fourth quarter of 2025, including additional curtailments for the holiday season, at its facilities in Quebec, Ontario, and the United States. “Demand for lumber continues to stagnate in North America, exacerbating an already difficult market,” said Luc Thériault, President of Domtar Wood Products. Domtar will continue to monitor market conditions and adjust its production plans accordingly. [END]
The federal government has rejected an industry request for payouts to softwood producers in Canada on the hook for US duties, fearing that direct intervention would further irritate the US. Canadian softwood producers have paid more than $10-billion since 2017 in accumulated duties, which are cash deposits held in trust by the US that collect interest. The producers expect the US to refund a portion of the duties if and when the two countries resolve the trade dispute. In the meantime, the industry has suggested that the Canadian government make payouts to reflect the present value of anticipated refunds. The two sources said Ottawa would have received any future refunds in exchange for injecting much-needed liquidity into the struggling industry. Ottawa rejected the idea because of fears that such payouts would be viewed as subsidies and become a serious irritant during the wider US trade war, according to a senior government official. [to access the full story a Globe & Mail subscription is required]
The much-pilloried Canada-U.S.-Mexico trade agreement was signed seven years ago this weekend—on November 30, 2018. A year later, it was amended to address rules of origin for autos, digital trade, IP, dairy and, who could forget, a sunset clause. We can all do the math. The December 10, 2019 amendments set in motion a 16-year term for the agreement, with a mandatory review every six years. Which means we’ll see more of a requiem than a birthday bash next week when Mark Carney is in Washington to help kick off the 2026 FIFA World Cup. But don’t bury CUSMA just yet. Despite the U.S. President’s freeze on negotiations, officials from both countries are talking every day and laying the groundwork for what will be an intense 2026. Not many insiders seriously expect CUSMA to go away; they’re working on changes—modifications, enhancements, renovations, depending on your point of view—that will continue to change the fabric of continental commerce.
The United Steelworkers union (USW) welcomes the federal government’s new measures to support Canada’s steel and softwood lumber sectors, calling them a meaningful step forward in the face of US tariffs and global market instability. The package includes tighter import controls, a 25% surtax on steel derivatives, strengthened border enforcement, expanded liquidity supports for softwood producers, a top-up to the Work-Sharing program, lower interprovincial freight costs, and new domestic-content requirements for federal projects. …Marty Warren, USW National Director… underscored that the Work-Sharing top-up will help workers stay on the job during temporary downturns and also pointed to the importance of strengthening procurement rules. On softwood lumber, the union welcomes the government’s efforts… “But let’s be honest, forestry towns cannot rebuild on temporary fixes. A long-term resolution to the softwood lumber dispute with the United States is essential. Without it, workers and communities remain vulnerable to decisions they cannot control.”
Domtar officials are reassuring their Port Alberni workers that the closure of the company’s Crofton Mill will have minimal impact here. Chris Stoicheff – Senior Director of Public Affairs at Domtar – says the company and entire industry needs provincial forestry rules to change to ensure fibre supply to BC mills. “We’re going to continue to operate that mill for the foreseeable future, but I think we’re also quite direct about the challenges that the industry is facing in BC and what we’ve been quite clear that those are policy driven constraints.” he said. Stoicheff says while most of Port Alberni’s pulp came from Crofton, that supply will now come from their Howe Sound mill. He said local MP Gord Johns work to secure a biomass tax credit is an example of the government support the forest industry needs.
Western Forest Products says the temporary curtailment at its Chemainus sawmill will extend into the new year, while work slowdowns are expected at its other mills across Vancouver Island in December. The WFP curtailment in Chemainus began in June, affecting about 150 workers, with work yet to resume. …Meanwhile, reduced hours are expected at other work sites on the Island later this month. “In the latter half of December, we will take temporary downtime at our Saltair mill in Ladysmith, Duke Point mill in Nanaimo, and Cowichan Bay mill in Duncan,” said Babita Khunkhun, senior director of communications at WFP. “This will involve reduced operating hours, an extended holiday break and adjusted shift schedules.” Khunkhun says regular operations are expected to resume at all of those mills – except for Chemainus – on Jan. 6 “depending on market conditions and available log supply.”
VANCOUVER, BC
When it comes to what ultimately lies behind Crofton’s impending closure, previous BC Liberal and NDP governments past and present all have much to answer for. Both were at the helm as tumultuous changes rocked BC’s forestry sector. And both did little of consequence in response. The result is not only pain for workers and their families, but a big economic hit for local government. …The first change that governments ignored was the disintegration of what were once highly integrated forest companies. At one point, each of B.C.’s three remaining coastal pulp mills — Crofton, Harmac and Howe Sound — were part of a continuous production chain owned by the same company. In the case of Harmac and Crofton, that company was MacMillan Bloedel, while Howe Sound’s pulp mill was co-owned by Canfor. With integrated companies, all aspects of production from the tree standing in the forest to final products were linked.
Domtar’s announcement of its Crofton pulp and paper mill closure was a major and far-reaching loss for its workers, the North Cowichan community, and the broader forest-industry supply chain across the BC Coast. It is especially difficult knowing that this closure was preventable. Industry, labour and municipal governments have been warning the BC government about the risk of mill closures for many months. The government was given numerous recommendations, solutions, and opportunities that could have helped avoid this outcome, but has largely failed to act with the urgency that was required. …This closure underscores the many challenges facing BC’s coastal forest sector: ongoing constraints on access to economically viable fibre, an uncompetitive business cost structure, and regulatory uncertainty. For TLA members, these pressures threaten the stability of their operations and the forestry-dependent communities they support. The TLA remains committed to working with government and industry partners to stabilize the sector…
More than 100 unionized North Island forestry workers on strike rallied in Campbell River on Wednesday. They’ve been without a contract for more than six months. They warned their employer that they are united and will succeed in their demands… The United Steelworkers marched to the Campbell River offices of Western Forest Products… The company owns a controlling 55 per cent share of La-kwa sa muqw Forestry (LKSM). On Oct. 20, the union filed a common-employer application with the Labour Relations Board. “…we’re challenging the fact that LKSM is actually a separate company. …We believe our members deserve the same collective agreement that all WFP members have,” said Brian Butler, president of United Steelworkers Local 1-1937 …“What this issue is really about is the union’s demand that it wants all contractors, new contractors, working for us, including First Nation contractors, to be mandatorily certified with the union,” said Greg DeMille, Operations Manager of La-kwa sa muqw Forestry.
The District of 100 Mile House’s mayor and one of its councillors went to Victoria for meetings with provincial government officials over the impending West Fraser Mill closures on Monday, Nov. 24. During the Mayor’s Report at the Nov. 25 District of 100 Mile House Council meeting, Mayor Maureen Pinkney and Coun. Donna Barnett both revealed details about a visit to Victoria regarding issues surrounding 100 Mile, including the impending permanent closure of the 100 Mile West Fraser mill, as well as frequent closures of the emergency department at the 100 Mile Hospital. On Nov. 6, West Fraser Lumber announced in a release that it would be closing its 100 Mile House lumber mill following a two-month wind-down.
MACKENZIE, BC — Forestry company Conifex Timber announced that it will temporarily curtail operations at its Mackenzie, BC sawmill for a planned four-week period commencing December 15, 2025. The curtailment is being implemented in response to, among other things, continued weakness in North American lumber markets. The curtailments will begin on December 15, for a planned four-week duration, Conifex said, adding that it is expected to reduce production by roughly 13 million board feet. The North American timber industry has gone through several curtailments in response to US President Trump’s decision to implement tariffs. …The company said it does not anticipate any challenges in securing sawlogs to maintain capacity operations in the future, once market conditions permit a return to full operations. It also expects to see gradual recovery in demand in the second half of 2026.
Private woodlot owner Andrew Clark says this year is one of the toughest he’s seen in the six decades he’s worked in the woods. For him, sales are ‘maybe 50 per cent’ of what they were last year. “It is the lack of markets which are the result of the tremendous uncertainty that the industry is in now because of the actions of the American government,” he said. He feels some of the federal government’s new supports – announced this week – could help. Prime Minister Mark Carney announced Wednesday a $500-million increase to the previously announced Softwood Lumber Development Program, which gives companies access to government-backed loans, totaling $1.2 billion. He also said Ottawa is working with railway companies to cut freight rates when transporting Canadian lumber across the country by 50 per cent. But Clark says the current situation – with the U.S. duties and tariffs amounting to 45 per cent – isn’t sustainable.
The effect of 10% tariffs on Canadian wood imports was the subject of a public hearing before the state’s Maine-Canadian Legislative Advisory Commission Wednesday. Dana Doran is executive director of the Professional Logging Contractors of the Northeast who says his members are struggling to stay afloat. “If they buy wood from Canada it’s hit by a 10% tariff on those raw logs. If they export any of their finished product they’re subject to any of the export tariffs,” Doran said. “So we’ve seen a chaotic situation that has occurred over the past 8 weeks because of the situation with tariffs.” Doran says if the U.S. had more domestic manufacturing of building and construction products it would have a bigger share of the marketplace, which could blunt tariffs. But Canada, he says, has 60% of that market.
MANCHESTER, Tennessee – Several US sawmills are struggling to stay open after industry leaders said years of trade uncertainty have drained export markets and tightened margins. The Hardwood Federation estimates at least one sawmill is going out of business every week. Additionally, the National Hardwood Lumber Association (NHLA) reported that more than 4% of U.S. sawmills have been lost due to closures and consolidations. The equipment from those sawmills ends up in a growing pile of auction fliers on Johnny Evans’ desk at the Evans Lumber in Manchester, Tennessee. However, Evans is desperate to save his sawmill from being auctioned off due to ongoing trade talks. …Evans said a lot of this goes back to trade tensions that began in 2018, during the first Trump administration. That’s when some countries, like China, stopped buying American hardwood in retaliation to President Donald Trump’s tariff policies.
