The Quebec government says it is ready to offer as much as $300 million in loans and loan guarantees to help the province’s forestry sector because of softwood lumber duties imposed by the United States.
President Donald Trump had launched a barrage of criticism against Canada last week targeting dairy, energy and lumber and calling our actions against U.S. trade interests “a disgrace.”
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Three cabinet ministers made the loan announcement in Quebec City Tuesday after the Americans had said they were imposing duties of up to 24 per cent on lumber imports.
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U.S. trade secretary Wilbur Ross confirmed the number while speaking with Reuters on Monday evening.
He said that the duties would affect $5 billion worth of softwood lumber imports from Canada.
“It’s about 31.5 per cent of the total U.S. market, so it’s a pretty big deal in terms of the Canadian relationship,” said Ross.
WATCH BELOW: Softwood lumber unrest
The dispute largely stems from the fact most Canadian lumber is harvested on government-owned land while American lumber comes mainly from private land.
The American lumber lobby has long accused Canadian governments of allowing companies to cut wood for less than market prices, which they say is an unfair subsidy.
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The Quebec aid could go to about 200 forestry firms.
Quebec’s forestry industry employs about 60,000 people.
— with files by Global’s Andrew Russell.
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