Ottawa is set to back the Canadian softwood lumber industry with a $1 billion aid package, in a move to offset the impact of punitive duties imposed on Canadian timber as a result of a trade dispute with the United States.
The aid package is expected to include employment insurance enhancements for laid-off workers, loan guarantees and funds to assist companies as they explore new markets and innovations.
Canadian Natural Resource Minister Jim Carr is expected to announce the details in Ottawa today (Thursday).
Lumber stocks were active on the news.
Canfor Corp (
TSX: T.CFP,
Forum) advanced 0.31% to $19.30.
West Fraser Timber Co. Ltd. (
TSX: T.WFT,
Forum) eased 0.29% to $58.60.
B.C. billionaire Jim Pattison, who is already Canfor’s biggest shareholder, recently took a 10.1% stake in West Fraser, raising speculation about a potential merger between the two companies.
Meanwhile, The Conference Board of Canada says U.S. softwood lumber duties will cut $700 million from Canadian exports over two years, resulting in a reduction of 2,200 jobs.