The US Lumber Coalition urged the US Trade Representative to communicate to Canada and Mexico that the US-Mexico-Canada Agreement binational panel review system needs to be scrapped during the USMCA review process. The review system… can challenge actions taken to stop the unfair trade using this special dispute settlement panel process. The panel review gives powers to international tribunals that the Constitution reserves for US courts. …Canada, in a recent submission, argued that USMCA binational panel review replaces not only review by the US Court of International Trade (CIT), but also appellate review by the US Court of Appeals for the Federal Circuit (CAFC), effectively arguing that a USMCA panel does not need to concern itself with any US Appeals Court decisions or precedents. “The idea that a USMCA binational panel is not bound by a US Court of Appeals precedent is, quite frankly, outrageous,” stated Zoltan van Heyningen.
Canada’s forest industry is being dismantled in plain sight. …For decades, Canada built its forest economy around a single export market and a narrow set of commodity products. That strategy has now been exposed as dangerously fragile. Our closest trading partner has proven unreliable, and the cost of over-dependence is being paid by rural workers and regions across the country. Canada does not have a forestry problem. We have a market diversification problem. Ironically, today’s global uncertainty has created a once-in-a-generation opportunity. …Capital is mobile, and companies are actively looking for stable jurisdictions in which to build new production facilities. Canada can and should be at the top of that list—but we need to build the foundational infrastructure to make this happen. …The federal government’s new Canadian Forest Sector Transformation Task Force opens a critical window to address structural weaknesses in Canada’s forest economy. 
OTTAWA — Canada’s premiers are set for two days of huddling in the nation’s capital with the economy, affordability and trade expected to be high on the agenda. The premiers meet with Prime Minister Mark Carney on Thursday, and will want to show a united “Team Canada” front as trade tensions rise again with Canada’s largest trading partner. The meetings come a year after U.S. President Donald Trump assumed office and hit Canada with blistering tariffs, and just ahead of negotiations to renew the Canada-United States-Mexico agreement, due for its first formal review this summer. Trump threatened Canada in recent days with 100% across-the-board tariffs on exports, which would land on top of the sectors already hit by steep U.S. tariffs, such as steel, softwood lumber and vehicles. Ontario Premier Doug Ford said the premiers will show they stand united as the whole Canadian economy remains under attack.
Canada has “no intention” of pursuing a free trade deal with China, Prime Minister Carney said, after US President Trump threatened to slap punitive tariffs on Ottawa. Carney said that the country respects its obligations under the Canada-US-Mexico trade agreement, known as CUSMA in Canada and the USMCA in the US, and will not pursue a free trade agreement without notifying the other two parties. Carney’s remarks come after Trump threatened to put a 100% tariff on Canadian exports if Ottawa “makes a deal” with Beijing. …Treasury Secretary Scott Bessent also echoed Trump’s sentiments on Canada and China, saying that the UScould not “let Canada become an opening that the Chinese pour their cheap goods into the US.” …Carney said: “What we have done with China is to rectify some issues that have developed in the last couple of years,” adding that the deal was “entirely consistent with CUSMA.”)
Cherie Whelan has been named the new chief executive officer of the B.C. Forest Safety Council. She takes over on April 1 from Rob Moonen, who announced his retirement in October. Whelan served as CEO of the Newfoundland & Labrador Construction Safety Association for two years and previously held the position of director of SAFE Companies at B.C. Forest Safety Council. The Nanaimo-based council delivers safety training and advisory services to British Columbia’s forest industry.
The Regional District of Nanaimo board will plead with fellow municipalities to pressure the B.C. and Canadian governments to prohibit raw log exports. At the Jan. 27 RDN board meeting, Paul Manly, City of Nanaimo director, proposed a resolution for the upcoming Association of Vancouver Island and Coastal Communities conference, asking B.C. local governments to call on senior government to “ban the export of raw logs and lumber cants from B.C. to ensure that forests harvested [on] Crown land and private-managed forest lands are processed in B.C.…” The resolution passed and will be brought before AVICC. Should it pass there, it would be forwarded to the Union of B.C. Municipalities. Manly …pointed to recent mill closures on the Island, with a key factor being “lack of accessible and affordable fibre”. …Leanne Salter, Coombs area director, said she thought the resolution needed to be tweaked.
A federal task force announced earlier this month will attempt to save Canada’s stricken forest industry from further decline through product and market diversification. While the support will no doubt be welcomed by the industry, in BC the more immediate need is access to timber. Canada’s forestry sector has been pummeled by a one-two punch of low lumber prices, and US duties on softwood lumber. The situation is particularly dire in BC where an integrated industry of lumber, remanufacturing, pulp and pellet mills has been collapsing like a row of dominos. …The industry is in crisis, a number of speakers said at the 
VICTORIA — The president of the Tahltan Central Government, Kerry Carlick, said British Columbia shouldn’t change its Declaration on the Rights of Indigenous Peoples Act, just as the First Nation and the provincial government celebrate a landmark agreement based on the legislation. Carlick said it is not a “good idea to take anything away from DRIPA,” adding that “if anything, it should be strengthened.” Carlick was speaking at an event with deputy premier Niki Sharma where they co-signed an agreement to share mineral tax revenue from the Eskay Creek mine. The ceremony came after the provincial government issued an environmental assessment certificate to Eskay Creek Mining Ltd. to restart gold and silver mining after a first-of-its kind collaborative assessment process with the First Nation under DRIPA. The provincial government has said it plans to revise the act after a series of court rulings around Aboriginal title, responding specifically to those decisions.
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The Municipality of North Cowichan says it is preparing for the possibility of another mill closure in Chemainus, while hoping it can be avoided. Western Forest Products announced Friday it is extending curtailment at the Chemainus sawmill, affecting about 150 workers. Mayor Rob Douglas said the priority is protecting jobs and preparing for potential financial impacts. “We’re going to be looking at impacts on our tax base, especially with the municipality already seeing the effects of the Crofton mill closure this year,” Douglas said. “We’ll prepare for the potential closure of the Chemainus mill in 2027.” Douglas said a permanent closure in Chemainus would affect future finances, but not to the same extent as the Crofton mill shutdown. “Western Forest Products has three sites, and with two of them operating that will continue to provide a significant portion of our industrial tax revenue,” he said.
The curtailment of the Chemainus sawmill will continue through to at least the end of 2026, Western Forest Products announced on Jan. 23. WFP spokesperson Babita Khunkhun said the Chemainus mill, which has been curtailed since June, continues to face persistently weak market demand and ongoing log supply challenges that do not support the economic operation of the mill. She said these conditions are not expected to change in the near term at the mill, which employs approximately 150 workers when in operation. “We are also implementing short-term curtailments at our Saltair and Ladysmith sawmills,” Khunkhun said. …“Where possible, we will work with employees to facilitate employment opportunities at other locations,” she said. …“Beginning in February, the Ladysmith sawmill plans to take a minimum two-week operating curtailment and the Saltair sawmill plans to take a two-week operating curtailment. The curtailments are in response to persistently weak market conditions.
A wood chip facility primarily owned by the ʼNa̱mǥis Nation on north Vancouver Island says it is permanently shutting down as a result of the recent mill closure in Crofton, BC. Atli Resources CEO Jonathan Lok says the Atli Chip LP directly employed nine people, but the closure will affect many more in the small community of Beaver Cove, near Port McNeill. …Lok says a contractor the company hired to bring wood fiber into the facility would be affected as well, along with the 10 to 15 positions it hires. …Lok says the company announced the closure on Jan. 20. He expects the facility to operate until the end of February. Atli Resources is majority owned by the ʼNa̱mǥis Business Development Corporation. Its other two partners include Domtar. Lok says all of the materials from the facility were shipped to the Crofton pulp mill, which Domtar announced in December would permanently close by April.
It appears that some investors have been kicking the tires at the soon to be closed Crofton pulp mill. A statement from the Municipality of North Cowichan said Mayor Rob Douglas and senior staff have recently met with several investors interested in potentially acquiring the Crofton mill site for continued forestry-related operations, or alternative industrial uses. “The municipality is facilitating connections between interested parties, Domtar (the mill’s owner), and the provincial government where appropriate, and remains hopeful that any future use of the site will generate employment opportunities and a stable tax base for the community,” the statement said. …North Cowichan provided no further information on who is interested in taking over the mill site.
Interim opposition leader Trevor Halford told logging contractors Friday that the province’s forestry downturn is being driven by a system that is “not functioning at the pace this sector requires.” Halford, the interim leader of the B.C. Conservatives spoke at the Truck Loggers Association’s convention in Vancouver. “This crisis is not about forests disappearing. It is not about fibre not existing. It is about permits not moving, decisions not being made, and systems that do not function at the pace this sector requires,” Halford said. Halford opened by citing a Vancouver Sun story that described the B.C. forest industry as “on the edge of collapse,” and quoting TLA executive director Peter Lister, who told the convention he had “never seen it as bad” in more than 35 years in the sector. …Halford said the industry has heard “explanations” from the government, but needs measurable results. “Accountability matters. Transparency matters. Results matter,” he said.
KENORA — Ontario New Democrats and union leaders say government should find ways to keep mills in Ear Falls, Ignace and elsewhere open, but with more worker involvement. “The bottom line is that when things are run on the corporate bottom lines only, communities get left behind, workers lose jobs, profits go out and the problems stay in the community,” said Luke Hildebrand, president of the NDP’s Kenora–Rainy River constituency association. “So the only long-term solution is workers having a stake in the future and not just a paycheque.” Hildebrand noted a petition calling on governments to “take immediate action to reopen the Ear Falls sawmill and stop the shutdown of Ignace sawmill” has gathered about 300 signatures. It also calls for establishment of a “forestry job protection task force,” development of “a unified provincial–federal strategy to ensure that Canadian lumber is used in Canadian homes” and support for worker equity in mills.
VIETNAM — The United States has decided to postpone the tariff increase on certain finished wood products, including upholstered chairs, kitchen cabinets, and bathroom cabinets, from January 1, 2026, to January 1, 2027. The postponement of the tax increase on some finished wood products helps Vietnamese businesses temporarily avoid the policy shock at the beginning of 2026. However, this is not a sign of loosening, but rather a tactical retreat, requiring the wood industry to be more proactive and cautious in policy planning and restructuring the overall development strategy of the entire industry. …Mr. Ngo Sy Hoai, Vice President of the Vietnam Wood and Forest Products Association (VIFOREST), commented that if postponing the tariff increase is considered an “opportunity,” then extreme caution is needed. In reality, tariff pressure has spread throughout the entire supply chain, from domestic manufacturers to importers and retail systems in the US.
ALEXANDRIA, Va.
