OTTAWA — The Canadian government has pledged $867 million in loans and loan guarantees to the softwood lumber industry, following the imposition of countervailing tariffs on softwood exports to the U.S. The feds will work in concert with the provinces to support the industry. Not surprisingly, the U.S. lumber industry is railing against the move, claiming it’s yet another example of government subsidies that tip the balance of trade in favour of Canadian exports. The loans are designed to help softwood producers offset the impact of the U.S. tariffs, which range from 3% to 23%, depending on the company and province it’s in. The loans should be used, say insiders, to help the Canadian industry become less reliant on the U.S. by developing offshore markets.
