Ottawa will pay a British Columbia consultant $84,000 to identify five countries that could buy more Canadian softwood lumber, nearly a year after Prime Minister Mark Carney announced a $1.2 billion plan to diversify the industry away from the U.S. market.The Department of Natural Resources disclosed the contract in an Advance Contract Award Notice that calls for an analysis of potential overseas markets for Canadian lumber.“The supplier will prepare an analysis that investigates opportunities for increased offshore Canadian softwood lumber exports and identify five markets or countries that present the strongest opportunities outside of the United States and Canada,” said the notice.“The supplier is expected to consider both new markets and ones where Canada already has a foothold.”Forest Economics Advisors LLC of Port Coquitlam, B.C., will receive $84,000 for the work.The consultant will be tasked with estimating how much Canadian lumber could realistically be sold in each prospective market and how quickly exports could grow.The study will also examine demand forecasts, international trade patterns and transportation costs.Natural Resources additionally wants the consultant to calculate how much money Canadian sawmills would have to spend retooling their facilities to manufacture products suitable for the identified markets.“The department is seeking a comprehensive analysis that identifies likely offshore growth markets for softwood lumber demand and evaluates Canada’s ability to compete in and sell to those markets,” said the contract notice.The final report is due Jan. 29.“The work will involve the exploration of market opportunities, evaluation of end-use by market, considerations of existing machinery at Canadian facilities, estimated export volume potential by market and estimates of capital investments required, where applicable,” the department said.The contract comes almost a year after Carney unveiled $1.2 billion in federal loans, loan guarantees and grants intended to help Canadian lumber producers diversify their customer base.“Nearly 90% of Canadian lumber exports currently go to the United States, leaving us disproportionately exposed to their trade actions,” Carney said when announcing the program on Aug. 5, 2025..Carney said federal leadership would “supercharge new product development and new market diversification.”“Together we’re going to write our own story rather than let others dictate theirs to us,” he said.“Softwood lumber is a pillar of Canada’s economy,” Carney added. “In the face of a changing global trade landscape, Canada’s new government will ensure the industry can transform to seize new opportunities in Canadian and international markets.”Canada and the United States have fought repeatedly over softwood lumber for decades.A 27% U.S. tariff imposed in 2002 contributed to numerous Canadian mill closures.The U.S. Department of Commerce has repeatedly alleged Canadian producers benefit from unfair advantages that allow them to dump cheaper lumber into the American market. Canadian lumber producers have disputed those allegations.
