The Canadian government will provide C$867 million (U.S. $643.1 million) in federal loans and loan guarantees to the country’s forestry industry as it battles U.S. countervailing duty measures against softwood lumber shipments bound for the United States.
The Canadian government will provide C$867 million (U.S. $643.1 million) in aid to the country’s forestry industry as it battles U.S. countervailing duty measures against softwood lumber shipments bound for the United States.
The funds include federal loans and loan guarantees to assist provincial efforts to keep Canadian companies viable.
Export Development Canada (EDC) will make commercial financing and risk management solutions — including loans and loan guarantees — valued at up to $500 million available to assist viable forestry companies, while the Business Development Bank of Canada (BDC) will provide $105 million in commercial financing to help eligible forestry companies in the short and medium term.
“Funding for further loan guarantees may be considered by the government in the future to address changing market conditions,” the Canadian government said in a statement.
More than $260 million of this funding will help Canadian forestry companies expand to new overseas markets, as well as diversify their softwood lumber products.
Canada’s forestry sector contributes heavily to the country’s gross domestic product (GDP), accounting for $22 billion in GDP last year. More than 170 rural municipalities have a significant portion of their income generated by the forest sector, and there are over 600 mills producing softwood lumber in Canada, the Canadian government said.
Canadian forestry companies offered government aid
