Feds to help softwood industry

SOFTWOOD AID PACKAGE COMING TODAY

Natural Resources Minister Jim Carr is set to unveil about $1 billion in financial supports for softwood lumber producers and their employees.

Cabinet discussed the options for a package May 9 but the federal government wanted more input from the provinces via the special working group Carr established in February.

A government source confirms Carr will unveil the details today in Ottawa along with Foreign Affairs Minister Chrystia Freeland.

It will include employment insurance enhancements for laid-off workers, loan guarantees in some form and funds to assist companies with exploring new markets and innovations.

The source — not authorized to discuss the matter in advance of the announcement and so speaking on condition of anonymity — characterized the money as a support package, not a bailout.

Were the United States to view the package as as bailout or subsidy, it could make the situation worse.

On April 28, the U.S. Department of Commerce slapped countervailing import duties as high as 24 per cent on Canadian softwood, arguing Canada unfairly subsidizes its industry by keeping the price of logging artificially low.

Carr has repeatedly called the allegations baseless, saying the U.S. has lost repeatedly when challenged by Canada before the World Trade Organization or under the North American Free Trade Agreement.