US President Trump could decide next year to withdraw from the Canada-United States-Mexico trade agreement (CUSMA), Politico reported on Thursday, citing U.S. Trade Representative Jamieson Greer. “The president’s view is he only wants deals that are a good deal. The reason why we built a review period into CUSMA was in case we needed to revise it, review it or exit it,” Greer told Politico’s White House bureau chief Dasha Burns in a podcast episode that airs Friday. Greer also raised the idea of negotiating separately with Canada and Mexico and dividing the agreement into two parts in the podcast, adding that he spoke with Trump about that possibility just this week. …Trump on Wednesday said that the CUSMA agreement – which faces an upcoming review- will either be left to expire or another deal will be worked out.
Related coverage:
- Open Tools: Mark Carney’s Trade Gamble: Will it Pay Off for Canada?
- Mike Crawley in CBC News: U.S. producers warn Trump’s tariffs jeopardize their access to Canada, Mexico
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.”
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.
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.
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.
