Kim Haakstad
Kim Haakstad… the president and CEO of the BC Council of Forest Industries (COFI) arrived in Prince George, where she’ll be spending the next few days at the BC Natural Resources Forum. …“Given the circumstances we’re in right now, that pulp mill’s running right now, but that’s not the case for our sawmills in the region. We know there’s some working part-time and almost all have reduced shifts.” Since 2022, BC has lost 15,000 direct, indirect and induced jobs in forestry. …On Tuesday, Jan. 20 COFI announced a coalition of forestry workers, community leaders and industry representatives who have organized an online petition asking the BC government for immediate changes to forestry policies that is says are making it difficult for companies to operate and remain competitive in the wake of punitive U.S. tariffs and severely reduced access to economic fibre.
The Nova Scotia government is defending itself after three other provinces levelled accusations that it is being secretive and undermining Canada’s fight against the United States over softwood lumber. Nova Scotia is urging the US Department of Commerce to reject requests from Quebec, Alberta and Ontario for the Atlantic province to provide much greater detail on how it calculates fees charged for harvesting timber. …Nova Scotia asserts that it should not be blamed for its surveys of private timberland owners that could result in higher fees for cutting down trees when compared with other provinces. The US has levied countervailing duties, arguing that other provinces have tree-harvesting fees that are too low when compared with Nova Scotia, which is exempt from US lumber duties. …Lawyers for Quebec, Alberta and Ontario urged the Commerce Department to make inquiries, saying the US should even consider abandoning the private surveys as a benchmark. [to access the full story a Globe & Mail subscription is required]
The Canadian and American economies are woven together tightly. So when Donald Trump slapped 25% tariffs on Canadian imports last year, many economists—myself included saw a disaster looming. …The most exposed sectors were those most dependent on US demand: steel, aluminum, autos, energy and lumber. …In our worst-case scenario, we expected it would shrink Canada’s GDP by 2.6 per cent, leading to a moderate recession and shaving nearly $2,000 a year off income for every Canadian. So far, however, that doomsday scenario hasn’t materialized. This was possible because of the Canada-US-Mexico trade agreement. …Avoiding the worst of the tariffs doesn’t mean we’ve won or even survived the trade war. Communities across the country are still hurting. …Regions in Quebec and British Columbia are under strain, with key industrial sectors—steel, aluminum, copper, lumber—are facing additional tariffs under Section 232 authority.
Facing growing backlash over the unintended consequences of its reconciliation policies, the B.C. NDP government has hit pause on controversial changes to the Heritage Conservation Act…Forests Minister Ravi Parmar announced the move Monday, saying he’d “heard loud and clear” that municipalities, business groups, the real estate sector and …the public needed more time to understand the changes. “It was very clear to me that I was not in a position to bring forward amendments this spring,” he said. …It’s the opposite approach to where the NDP started on the file just four months ago, charging forward with the changes so aggressively that their passage—following secret negotiations with First Nations and non-disclosure agreements slapped on everyone else—seemed like a fait accompli. …The NDP say they are in listening mode now, on the Heritage Conservation Act. The question is whether the government truly understands that changes built without public trust are simply no longer viable.
North Cowichan’s mayor wants the federal government to extend its temporary Employment Insurance program to include workers at the Crofton pulp mill who will be working until mid-April. In letters to Minister of Jobs and Families Patty Hajdu and Jeff Kibble, MP for Cowichan-Malahat-Langford, Rob Douglas said the temporary EI measures that Ottawa introduced last summer in response to major economic conditions across the country, including mill closures, are set to expire on April 11. That’s just three days before approximately 60 workers, who are being maintained at the Crofton mill for operational considerations beyond its closure in early February, will receive their layoff notices on April 14. …Douglas said that, on behalf of the community, he is requesting that the federal government extend the temporary EI measures or implement an exemption mechanism to ensure that all Crofton mill workers affected by the closure are treated equitably.
VANCOUVER ISLAND — About 100 unionized forestry workers on the north Island who’ve been on strike since June have reached a tentative agreement with La-kwa sa muqw Forestry Limited Partnership. The United Steelworkers Local 1-1937 and the LKSM Partnership announced in a joint statement that the agreement is subject to a ratification vote by the union, and no details are being released. “The USW bargaining committee has advised that they will be recommending that its members accept this agreement,” said the joint statement. The deal was reached with the assistance of the BC Labour Relations Board. …LKSM LP is the former Western Forest Products mid-Island forest operation, which remains majority-owned by Western Forest Products. The LKSM partnership is made up of the Tlowitsis, We Wai Kai, Wei Wai Kum and K’ómoks First Nations, all members of the Nanwakolas Council. …The operations cover about 157,000 hectares near Campbell River and Sayward.
Logging contractor Ron MacFarlane feels fortunate to have work for his eight-person crew, cutting mostly second-growth Douglas fir on a cut block …on B.C.’s Sunshine Coast, while business in his industry is otherwise “flatlined.” “We’re busy until March, and then we’ll see from there,” MacFarlane said at the Truck Loggers Association annual convention. …Difficulties in getting the province to speed up permits to cut more of that timber has put the industry “in a state of crisis,” said Peter Lister, executive director of the Truck Loggers Association. “I’ve never seen it as bad. …it is really on the edge of collapse.” …For forest-management executive John Mohammed, however, Parmar is still missing a connection to short-term actions the industry desperately needs to free up some of the cutting permits companies have sitting on the shelf because they are uneconomic. …Mohammed said Parmar could take the risk of lowering [coastal] stumpage rates … to help economics.
British Columbia’s Forests Ministry has entered into a memorandum of understanding with China on modern wood construction, a development that the province hopes will bolster the provincial lumber sector as it seeks alternatives to the U.S. market. The five-year, non-binding agreement with the Chinese government also involves the Canadian federal Department of Natural Resources and is among the first reached with Beijing after the arrival of Prime Minister Mark Carney in China this week. On the other side is China’s housing and development ministry, with the memo agreeing on co-operation on the integration of modern wood construction into China’s urban renewal and rural revitalization strategies and exploring “practical approaches” for green developments. University of British Columbia political ecologist and China scholar Juliet Lu said the MOU is “relatively low-hanging fruit” in Carney’s attempt to rebuild trade momentum with Beijing…
Day 1 of the TLA Conference featured the Politics over Lunch session, a wide-ranging and candid discussion of BC’s political landscape and its implications for the forest sector. Moderated by Vaughn Palmer, the luncheon brought together Rob Shaw, Political Correspondent with CHEK News, and Richard Zussman, Vice President of Public Affairs at Burson. The pair examined shifting government priorities, with Zussman arguing that economic growth and jobs are increasingly shaping policy decisions amid trade uncertainty and fiscal pressures, while Shaw highlighted inconsistent communication around those priorities. They explored the BC Conservative leadership race, the challenges of translating regional resource issues into urban political discourse, and ongoing uncertainty surrounding land use and DRIPA. Discussion also touched on the province’s projected $11-billion deficit, and the gap between government rhetoric and forestry realities. Delivered with humour and frankness, the session offered delegates a clear-eyed view of how politics, policy, and economic pressures are colliding in BC’s forest sector.
With Canadian lumber producers facing crippling American duties and tariffs, Canadian sawmills that want to stay in business may have to develop markets outside the U.S. Since North America is the only major lumber market that still uses imperial measurements for lumber, this would require retooling logging and sawmill operations to metric. Some B.C. mills are already partway there. With Japan and China becoming saturated, Canadian lumber exporters will need to develop–or redevelop–markets beyond the Indo-Pacific. “We did this before,” said Rick Doman, chairman of Forest Innovation Investment (FII). In the 1990s and early 2000s, Canadian sawmills produced lumber for those markets, he said, but eventually lost them. “The North American market got so strong that we left those markets, and really the Nordic countries took over those markets,” Doman said. But the U.S. has since erected trade barriers in the form of duties and tariffs.
A letter from the Carleton-Victoria Forest Products Marketing Board to New Brunswick’s natural resources minister points to frustration building within the province’s forestry industry. The board’s general manager Kim Jensen, says some prices are the lowest they’ve seen in a decade. Jensen writes that US tariffs have been hard on the entire sector, including mills, but there’s been little support for private producers. “I have already heard from landowners who have changed their mind about having their woodlots cut,” she states. “Is the government’s long-term plan for the private forestry sector to just disappear? Because that is what is happening. Under your watch.” …Natural Resources Minister John Herron acknowledged that prices have declined since October. …But Herron didn’t mention any possible provincial support.” …J.D. Irving said 97% of the company’s lumber is under contract and not impacted by the price changes cited in the letter.
The National Lumber & Building Material Dealers Association (NLBMDA) released its 
ATLANTA — A proposed amendment to the Georgia Constitution would end sales taxes on timber, a major industry battered by mill closings and storms. House Majority Leader Chuck Efstration said a bipartisan group of legislators want to help protect “a cornerstone of the state’s rural economy.” “The timber tax cut is necessary because Georgia timber farmers are facing severe economic hardship following the closure of multiple sawmills in Georgia and significant losses in the aftermath of Hurricane Helene,” said Efstration, R-Mulberry, the sponsor of House Resolution 1000. “Georgia is a national leader in forestry, and I want to help this state’s rural economy and the livelihood of many Georgians.” Georgia’s forestry industry was the largest in the nation in 2021 based on harvest volume and product export values of nearly $4 billion, according to a report by the Georgia Forestry Association. But timber producers have suffered in recent years. 
