VANCOUVER — The president of the BC Council of Forest Industries says she supports Ottawa’s decision to walk away from recent trade negotiations with the United States even though negotiators reportedly offered concessions on contentious lumber tariffs.
Kim Haakstad told WE NEWS the breakdown in talks will present short-term challenges for the province’s forestry sector, but Ottawa had little choice if negotiators could not secure a deal that worked broadly for Canadians.
The comments follow a statement from the U.S. Trade Representative that the White House had proposed reducing tariffs on Canadian lumber in the most recent round of talks, which collapsed last week. British Columbia Premier David Eby said earlier this week he understood there had been some progress in the discussions and that it was “disappointing” to see a potential deal fail to materialize. Still, Eby said Canada should not remain in a negotiation that would be detrimental overall.
Calls for immediate domestic action
Haakstad said provincial and federal governments must now move quickly to mitigate the harmful consequences of the tariffs that were triggered after the talks broke down. She singled out regulatory delays and transportation costs as two structural problems that impede the competitiveness of B.C. lumber on global markets.
“We have a regulatory environment that has got, I believe, overly complex,” Haakstad said. “We’re asking to make sure that it is streamlined in a way that the regulations make sense and are reducing the costs.”
In interviews, she said the permitting process remains lengthy and expensive, with forest-cutting permits sometimes taking two to three years to secure. Haakstad also flagged rail transport as a growing barrier for moving product across the country.
“Rail costs have gone up 40 per cent since 2018 for moving forest products across Canada,” she said, calling on Ottawa to work with industry to reduce those expenses.
What industry wants
Haakstad outlined several areas where government intervention could help the sector adapt to renewed trade tensions and punitive duties from the United States.
- Regulatory streamlining to reduce approvals time and lower compliance costs;
- Measures to address rising rail transport costs impacting domestic distribution;
- Co-ordinated federal-provincial responses to soften the immediate economic impacts of tariffs on producers and communities.
She did not specify legislative or programmatic details in the interview, focusing instead on the general need for faster, less costly regulatory processes and better national transport economics for forest products.
| Issue | Industry concern |
|---|---|
| Permitting timelines | 2–3 years to obtain cutting permits |
| Rail transport costs | 40% increase since 2018 |
| Trade talks outcome | Collapse despite reported U.S. tariff concessions |
Local stakes and wider implications
British Columbia’s forestry industry remains a significant employer in rural and coastal communities. Higher tariffs or prolonged uncertainty from stalled talks can ripple through local economies that rely on logging, milling and downstream wood manufacturing.
Provincial leaders must weigh immediate relief measures against long-term changes to how natural resources are managed, Haakstad suggested. Her comments speak to a broader debate about striking a balance between environmental oversight and ensuring the regulatory framework does not impose prohibitive delays or costs on resource-based industries.
For Ottawa, the collapse of talks presents a political and policy challenge: pressure from industry groups to seek relief and competitiveness measures at home, while defending a negotiating stance that Haakstad and the premier argue was necessary if a fair deal could not be secured.
What comes next
Haakstad said the next steps hinge on federal and provincial co-operation. With the tariff threat still active, industry leaders expect proactive policy discussions on transport pricing, permit reform and targeted supports to help companies weather any immediate economic shock.
“It’s now up to the provincial and federal governments to address the impacts of the punishing U.S. tariffs,” Haakstad said, underscoring the urgency felt across the sector.
As stakeholders await concrete proposals, communities dependent on forestry are bracing for a period of negotiation and adjustment that could shape the sector’s competitiveness for years to come.
