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OTTAWA \u2013 Federal Industry Minister M\u00e9lanie Joly said financial relief is coming soon for Canada\u2019s tariff-struck softwood lumber sector.<\/p>\n
The minister said in Fredericton Wednesday the government will provide funding through banks, backstopped by the Business Development Bank of Canada, in the \u201ccoming days.\u201d<\/p>\n
\u201cThat\u2019s for supporting, right now, our businesses to make sure that they stay afloat,\u201d Joly said. \u201cMeanwhile, we will make sure that we work on a buy-Canadian policy to have our homes and our major projects and our infrastructure being built with the great softwood from New Brunswick.\u201d<\/p>\n
While the vast majority of Canadian trade with the U.S. is exempted from tariffs because of the Canada-U.S.-Mexico Agreement, U.S. President Donald Trump has targeted the steel, aluminum, auto, energy and lumber sectors with duties.<\/p>\n
In August, Prime Minister Mark Carney announced a $1.25 billion aid package to support the softwood lumber sector.<\/p>\n
Joly said the funding will go toward ensuring businesses stay afloat while dealing with \u201cunjustifiable\u201d tariffs, adding the government will also offer support for operations and capital expenditures.<\/p>\n
The minister said the government funding will be provided based on individual companies\u2019 needs.<\/p>\n
\u201cWe\u2019re cutting red tape and we\u2019re using the banking system to make sure that funding is available,\u201d she told reporters Wednesday. \u201cIt\u2019s not a question of how much each province will have, it\u2019s ultimately what are the needs of the companies across the country.\u201d<\/p>\n
The Business Development Bank of Canada said in a news release Wednesday that the program will make it easier for the country\u2019s softwood lumber businesses to access $700 million in new term loans or letters of credit through their primary financial institution.<\/p>\n
It said the program was designed after discussions with companies, industry associations and financial institutions.<\/p>\n
\u201cBDC emphasized the program is not intended as a cure-all for the sector\u2019s considerable challenges but rather act as a complementary tool with other financial options and government support programs to help these businesses continue to operate and better manage through an ever-evolving situation,\u201d said the news release.<\/p>\n
Minister of Energy and Natural Resources Tim Hodgson said in the release that the forest sector continues to face \u201cunjustified duties\u201d when exporting lumber to the U.S.<\/p>\n
\u201cWe are working as Team Canada to support and retool our forest sector to protect jobs, strengthen competitiveness and resilience, and Buy Canadian to use more Canadian wood at home,\u201d he said.<\/p>\n
Joly said Wednesday she is following the development of the softwood lumber industry closely because it relates to national security.<\/p>\n
\u201cBecause if one day Canada is not in a time of peace, we need to have steel plants, we need to have aluminum plants, we need to have lumber also,\u201d she said.\u00a0<\/p>\n
\u00a92025 The Canadian Press<\/strong><\/p>\n<\/p><\/div>\n