Premier Eby: Tariffs, Timber, and Transformation at COFI

Kelly McCloskey, Editor
Tree Frog Forestry News
April 7, 2025
Category: Special Feature
Region: Canada

Premier David Eby delivered the final keynote at the 2025 COFI Conference in Prince George with a firm message of solidarity for British Columbia’s forest sector amid rising economic and geopolitical uncertainty. Addressing delegates at the final luncheon session, Eby painted a stark picture of global instability, citing a sharp downturn in US markets, looming tariffs, and direct threats to the province’s timber industry. “One in 10 sticks of lumber used in the States comes from British Columbia,” he reminded the audience. “It was $7 billion worth of trade last year… and the import taxes, which is what tariffs are, will be paid by Americans in the form of more expensive homes.”

Eby warned that the recently announced US tariffs are likely to increase, targeting not just Canadian timber but pharmaceuticals and autos as well. He described the rationale behind these moves as “ludicrous and absurd,” especially in the context of a national security investigation into Canada’s timber sector. “Regardless of the posturing of the president,” he said, “the reality is that the Americans need Canadian timber.” He also noted the dramatic impact on the US economy. “The American stock market is down another 5% today… We’re talking about $4 trillion of value eliminated in a very short period of time.” While reinforcing BC’s commitment to fight back in partnership with the federal government, Eby emphasized the need for diversification. “If [sanity] doesn’t prevail in the United States,” he said, “we’ve got to work together to diversify our markets internationally and across the country.”

The Premier acknowledged that some of the sector’s challenges stem from within the province, citing government policy, court decisions, and endangered species legislation. He reaffirmed the government’s commitment to a working forest target of 45 million cubic meters and noted that new Forests Minister Ravi Parmar was appointed with this explicit goal. Eby highlighted several efforts underway to reach that target. He cited accelerated permitting efforts, forest landscape planning, and prioritized Indigenous agreements. “We believe that with your assistance, this is a shared project, that we can get to that 45 million target, which we all know is absolutely essential.”

Eby also announced two new initiatives. The first was a significant governance shift for Forestry Innovation and Investment (FII), a $10 million agency focused on market diversification. The board will move from deputy ministers to industry representatives. “You know where the opportunities are,” he told the audience, “and you know where we will be able to benefit from diversifying our markets.” The second was the appointment of Mackenzie Leine, a forester with industry experience, as the new Deputy Minister of Forests. Eby said this move would help bring an industry lens to decision-making. “Having somebody coming from industry… will really assist our experienced and incredible team in the Ministry of Forests to ensure that that voice is heard at the table at the very top.”

The Premier also addressed BC Timber Sales, saying the organization is being overhauled to become more responsive. He highlighted the role it could play in commercial thinning, forest fire management, and fibre supply to pulp mills. “As we move to 45 [million cubic meters], we’re connecting trees in the province with people that are adding value… supporting that critically important work.”

Eby acknowledged that some reforms previously avoided for fear of US retaliation are now back on the table. “In a way, the actions of the Americans do create the opportunity for us to revisit some of the ways that we’ve been operating.” He cited the Manufacturing Jobs Fund, which has generated $700 million in investment and secured 3,500 forestry jobs, and mentioned efforts with the Forest Enhancement Society to support long-distance fibre hauling. As part of this, he announced the approval of nine-axle lumber truck and trailer combinations to make fibre transport more economical.

On the permitting file, Eby pointed to internal targets and progress. The Ministry of Forests currently approves 87% of permits within 40 days, but the goal is now 20 days. He acknowledged the delay before submission is also a major bottleneck and that solutions require cooperation with Indigenous communities. “The forest landscape planning processes have been going well, but they’re taking too long.”

In the Q&A that followed, COFI President and CEO Kim Hackstadt pushed for more certainty around timber inventory and planning. Eby confirmed the need for long-term certainty and said the government is expanding LIDAR scanning and data transparency to fill knowledge gaps. He also expressed concern that permitted stands are not always harvested, urging collaboration with industry to get fibre flowing. Hackstadt noted that some of BC’s AAC data is outdated due to beetle kill and wildfires, and Eby agreed this was a serious issue. “One of the things that was pretty startling for me was a real gap in a lot of the information that the province had about the state of the land.”

On carbon policy, Eby said the province eliminated the consumer carbon tax quickly after the federal backstop was removed. He acknowledged fuel savings should pass through to businesses and noted concerns over industrial competitiveness. While the industrial carbon tax remains, he said the output-based pricing system is designed to incent efficiency, not punish mills. “The goal here is to encourage and incent continued investment in mills… not to close mills.”

On transportation infrastructure, Eby acknowledged weaknesses in rail and road capacity, saying the province is working with CN and investing in port upgrades to improve logistics. He admitted the province’s relationship with rail operators is still developing. “It’s not as established as our relationship with other modes of transportation, but it’s coming really well.”

He described a whole-of-government permitting approach, with a dedicated deputy ministers team fast-tracking key projects and identifying bottlenecks. This has resulted in a 40% reduction in permit times across government. “It’s also identified some real headache issues… different interpretations of the same regulation in different regional offices.”

Hackstadt raised the importance of measurable metrics. Eby said the province is expanding its housing permitting dashboard to include forestry. “You’re able to see at a glance how long it’s taking to approve particular permits… and we also need that information inside government.”

On Indigenous engagement, Eby pointed to efforts to streamline referrals and focus discussions on what matters most to nations. “All we want to talk about is the water,” he quoted one nation as saying. The goal, he explained, is to agree on core concerns and then ensure permits align with those priorities. He also cited revenue sharing and a $1 billion capital fund to support Indigenous economic development.

When asked if permitting could be expedited for Indigenous-led projects, Eby said interim agreements and the longer-term forest landscape planning work are key tools. He acknowledged frustrations and said the province is working closely with leaders like Regional Chief Terry Teegee to ensure permitting meets government obligations while remaining practical.

On retaliation to US tariffs, Eby said the province is acting in support of federal efforts. That includes Buy BC legislation, truck traffic leverage, and trade missions to Asia. He shared that the province had taken US liquor off store shelves and praised Alaska Senator Lisa Murkowski for voting with Democrats to condemn the tariffs. “We’re strengthening our provincial economy, fast-tracking permits… and we’re diversifying our markets.”

He noted Canada is considering an export tax, though that decision rests federally. Eby suggested the federal government could go further by stockpiling or taxing critical minerals like germanium, used in US military equipment and produced in BC. “There are things that we produce in Canada that the Americans can’t get anywhere else.”

In closing, Eby said Canada’s response must be both short- and long-term. “We want to continue to expand the use of BC wood products, both nationally and internationally.” He said interprovincial trade reforms may open new markets, but reminded the audience that success begins with supply. “We’ve got to get to the 45 million cubic meters… in order to make sure that we’re getting those products to our primary mills.”

David Eby and Kim Hackstadt

Drafted with the assistance of digital tools to streamline the process. 

Read More