SUNDRE – The Town of Sundre's council has agreed to add its voice in support of the forest sector’s advocacy in the face of U.S. tariff threats as well as what the industry considers regulatory hurdles at home.
Forrest Battjes, a forestry educator with the Alberta Forest Products Association, presented to council on April 7 during a regular meeting.
The association represents companies across the province from High Level down to Crowsnest Pass including operations ranging from pulp and bio-energy to engineered wood products.
The sector reportedly supports approximately 30,000 jobs across Alberta and in some communities like Sundre, home to West Fraser – Sundre Forest Products, is among the largest local employers.
Battjes discussed trade barriers in Alberta’s industry as a whole as well as some proposed solutions to face the challenges.
“The stakes are high right now for our industry,” said Battjes.
While the sector is a significant contributor to the provincial economy, he said it is increasingly at risk due to factors beyond its control, including tariffs, regulatory challenges as well as shifting global trade landscapes.
First discussing “the elephant in the room” – U.S. tariffs – Battjes said, “approximately 50 per cent of Alberta’s forest products are exported to the U.S., making trade with the country a key component of our industry’s success.”
So trade barriers threaten the industry’s ability to compete and risks the livelihood of many rural communities, he said, adding that while there are steps the provincial and federal governments can take to support industry, another crucial aspect to the equation are municipally-elected officials.
“It starts with the people in this room to move us past some of these barriers,” he said, adding advocacy efforts have to reach the U.S.
“Alberta needs to push back on unfair trade practices and communicate why the tariffs hurt both Canadians and Americans,” he said.
“Lumber duties are a tax on U.S. consumers, essentially,” he said.
“The U.S. housing market depends on Canadian wood to keep prices stable, and the U.S. simply can’t produce enough softwood lumber domestically,” he said.
“Even with tariffs, they’re still going to need our products.”
Another factor is keeping regulator costs low.
“Domestic policies also impact our industry,” he said.
“Alberta’s already a leader in forestry competitiveness but this needs to continue to be a focus,” he said, suggesting legislation such as a proposed Build With Alberta Wood Act that could be used as a tool to support industry.
“One way to counteract trade uncertainty is to boost our domestic demand,” he said, citing B.C. and Québec as provinces that have already enacted such measures.
Market diversification, which can reduce reliance on the U.S., is another important aspect, he said, recommending greater participation in trade missions to build international partnerships.
“Alberta needs to look beyond the U.S. and pursue new trade opportunities,” he said. “There’s major growth potential in places like India, Philippines, China, Japan and Korea.”
A tax credit to incentivize research and development would also go a long way, he said, adding innovation is key for long-term success.
Although Alberta’s forest industry for the time being remains in a strong position, steps should be taken to prepare, he said.
“We do face challenges with trade tariffs and barriers,” he said.
Following the presentation, councillors asked a few questions.
Coun. Paul Isaac asked how to make changes that would encourage local builders to buy Alberta-based wood products.
“If our local builders aren’t using Alberta wood, they’re obviously getting other wood cheaper,” said Isaac, adding where the product comes from matters less than the impact on a corporation’s bottom line in the modern world.
“That’s a great point,” said Battjes, adding one component could be legislation such as a Build With Alberta Wood Act as well as incentivizing innovative ways to use wood.
Coun. Todd Dalke asked who council should lobby and what it should ask for.
Battjes said grant or subsidy programs to invest in new wood-related technologies would be government driven.
Coun. Jaime Marr asked about the state of Alberta’s interprovincial trade and what other municipalities are doing.
While there is quite a bit of flux in interprovincial trade with what goes to or from provinces such as B.C., Alberta or Ontario, Battjes said that ultimately, half of the product goes to the U.S. and a small fraction reaches international markets like Japan.
“At this point other municipalities are signing on with our advocacy letter,” he added.
Battjes added that while Jason Foote, general manager of Sundre Forest Products, was unable to attend the meeting, that West Fraser endorsed the letter and advocacy campaign.
“I fail to see how we could be opposed, seeing as one of our primary employers is the wood industry,” said Marr, who moved to receive the presentation as information as well as support the association’s advocacy and that the mayor sign a letter to Alberta’s premier.
Dalke went a step further to suggest it would be good to know what the municipality can do beyond agreeing to sign a letter, such as being provided with a list of ministerial contacts to more directly engage with.
“We struggle as a council to say what can we do more for our industry,” he said. “I would like to do more than just the letter.”
Mayor Richard Warnock said council can create an advocacy statement.
As council wanted to hear directly from Sundre Forest Products, Marr’s motion was tabled until the April 28 meeting and passed unanimously after Warnock updated his colleagues to say he’d had a chance to speak with the mill’s manager who appreciates the municipality’s willingness to support the industry.
