Many have recognized the unique potential of Canada’s forest sector to drive economic growth, protect our environment, and help communities prosper. Our industries directly employ more than 200,000 people from coast-to-coast. Each year, the forest sector generates some $87 billion in value.
As the fifth largest Canadian export industry, forest products made up 5% of all Canadian exports in 2023, amounting to $37 billion. The Canadian forest sector is vital to tackling national policy challenges like housing affordability, rural development and employment, emissions reductions, and wildfire resilience.
The U.S. Administration’s recent approach to tariffs and global trade policy poses a real threat to Canada’s forest sector businesses and employees. Unilateral tariff actions drive-up costs, create uncertainty, and hurt people and economies on both sides of our shared border. This challenge is further compounded by the fact that existing softwood lumber duties imposed by the United States are expected to increase significantly later this summer.
Across party lines, any federal government looking to grow Canada’s economy and support working families has a clear partner in the forest sector.
Yet, over the past decade, poor policy choices and mounting regulatory burdens have stifled investment. Instead of creating jobs and scaling solutions, capital is leaving our country for more competitive jurisdictions and investment in Canada is falling due to rising costs of operating and uncertain hosting conditions. With worsening wildfires and economic pressures, many mills are struggling—49 closures and 8,700 job losses in the last 10 years. Given Canada’s bountiful forest resources and that global demand for timber is expected to grow over 49% from 2020 to 2050, it shouldn’t be this way. We should be bringing more Canadian wood to Canada and the world – not less. Without urgent policy corrections, more facilities, jobs, and communities are at risk.
With a new Prime Minister and mandate, Canada is at a pivotal moment to support businesses and protect jobs. The forest sector urges the federal government to take immediate action with long-term strategic benefit to help it shift from survival mode to solutions provider—driving economic growth, supporting communities, and advancing environmental goals. To unlock its full potential for job creation, housing, and emissions reductions, the forest sector must be prioritized as a strategic pillar of the national economy.
FPAC’s Forest Sector Action Plan outlines four practical steps the government can take in its first year to demonstrate this commitment and deliver real results:
1. Pass the draft Investment Tax Credits (ITCs) to support clean energy and job generation.
2. Reform the federal carbon policy toolkit to work for Canadians.
3. Reduce regulatory barriers to encourage investment and build homes faster.
4. Implement worker supports to address acute critical labour shortages and potential trade-related workforce impacts.
Read the Forest Sector Action Plan for Canada’s next government.
FPAC provides a voice for Canada’s wood, pulp, and paper producers nationally and internationally in government, trade, and environmental affairs. As an industry with annual revenues exceeding $87.2B, Canada’s forest products sector is one of the country’s largest employers—providing 200,000 direct jobs and operating in hundreds of communities across the country. Our members are committed to collaborating with Indigenous leaders, government bodies, and other key stakeholders to develop a cross-Canada action plan aimed at advancing forest health, while supporting workers, communities and our environment for the long term.
