Derek Nighbor, President and CEO of the Forest Products Association of Canada, appeared before the Parliamentary Standing Committee on International Trade to outline the promise and complexity of growing Canadian forest sector exports to Japan — and to make a pointed case for sustained federal investment to make it happen. Canada currently ships roughly $1 billion annually to Japan, a figure Nighbor put in context: it reflects a century of Canadian forestry trade there and 50 years of work by the Canada Wood Group. “It’s a heavy lift,” he said. Against nearly $8 billion in annual softwood lumber exports to the United States — now facing combined duties and Section 232 tariffs in the 45% range — Japan is a real but incremental diversification opportunity. Canada holds 65% of Japan’s 2×4 dimension lumber market, built by actively developing a wood-building culture where one didn’t naturally exist. Holding and growing that share, Nighbor told the committee, requires sustained technical engagement on codes, standards, and the platform frame system — not simply shipping more product. He also flagged headwinds: declining Japanese housing starts, growing domestic Japanese lumber supply, aggressive European entry across lumber, pulp, and pellets, and tightening Japanese sustainability and traceability requirements.
Nighbor’s asks to the committee were specific. He called for dedicated multi-year funding for the Canada Wood Group to build on its export development work, and for doubling the funding of NRCan’s Global Forest Leadership Program. He asked for federal investment in market-entry infrastructure — spec alignment tools, testing labs, and distributor networks — applicable to both Japan and Korea. And he made the case for continued government-led trade missions, pointing to a BC and Alberta forestry-specific mission to Japan in November as the kind of targeted engagement that moves the needle. Beyond lumber, Nighbor identified mass timber and engineered wood — aligned with Japan’s housing renewal, decarbonization, and seismic resilience priorities — and bioeconomy products including biocarbon, biofuels, and biomass as the next frontier for Canadian forest exports to Japan.