Richard Froese
South Peace News
Potential tariffs on forest products going to the United States could have a significant impact on the forestry operations in the High Prairie region and across Alberta, according to a provincial forestry association.
Alberta Forest Products Association senior vice-president Brock Mulligan expressed concern to Big Lakes County council at its regular meeting Feb. 12.
U.S President Donald Trump recently announced proposed tariffs shortly after he was inaugurated Jan. 20.
“In the Big Lakes region, forestry supports 314 direct jobs in mills and several hundred additional jobs in forestry harvesting and management,” Mulligan said.
“The industry also has significant spinoff employment.”
Province-wide, forestry employs more than 30,000 Albertans and has a $14 billion impact on the economy.
“It’s too early to tell what the impact might be, but it’s not too early to have conversations about steps we can take to prepare and keep the industry strong,” Mulligan told council.
The AFPA is travelling to communities to talk about supportive steps that can be taken for Alberta’s forest industry in light of damaging trade barriers being contemplated by the U.S.
“The U.S. is approximately 50 per cent of our market,” Mulligan said.
Softwood lumber is currently charged a duty of 14 per cent and these duties are projected to jump to more than 30 per cent in the fall of 2025, he says.
“A tariff would add 25 per cent to this and also be applied to products like pulp and paper and wood panels that do not currently have any trade barriers,” Mulligan said.
“Few industries can withstand this kind of pressure.”
At the same time, many companies in the U.S. are dependent on Alberta’s forest industry, he added.
“Whether they sell U.S. products like resins for wood panels, forestry harvesting equipment, trucks for transporting logs and finished products, or use Alberta wood to construct homes or Alberta pulp as a feedstock for their tissue and paper plants, there is a high degree of interconnectedness,” Mulligan said.
“It is important to remind Americans of this mutually-beneficial relationship.”
He and the AFPA encourage people to buy Canadian products.
“Consider using Alberta wood for your projects and be an advocate in our community for our sustainable forest industry,” Mulligan urged.
“With trade barriers in our largest market, it is imperative that we have conversations about supporting forestry jobs by using more of our wood her at home, diversifying markets, strengthening transportation infrastructure and eliminating red tape.”
The AFPA has identified six steps that can be taken to support Alberta Forest industry.
- Advocate for Alberta forest products in the U.S.
- Keep Alberta’s regulatory costs low.
Keeping Alberta competitive requires streamlined permitting requiring
Cost control protects jobs and ensures mills remain operational.
- Build with Alberta wood.
Using more local wood reduces reliance on exports.
A “Build with Alberta Wood” act can drive demand.
British Columbia and Quebec have already implemented similar policies.
- Advocate for federal financial assistance.
A financial backstop would help mills survive the crisis.
Alberta’s support for federal action is crucial.
- Continue to support market diversification.
Alberta must actively promote its products abroad with growth potential in India, the Philippines, China, Japan and Korea.
- Implement a forestry manufacturing tax credit.
A tax credit would encourage investment in new products and technologies.