Home Meadow Lake Tariff threat has forestindustry pining for solutions

Tariff threat has forestindustry pining for solutions

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Tariff threat has forestindustry pining for solutions

If U.S. President Donald Trump follows through with his promise to impose a 25 per cent tariff on Canadian imports, as well as 10 per cent on energy, it could prove staggering for the country’s forest industry, including operations here in northwest Saskatchewan. “This is historic and unprecedented, and we find ourselves here in Meadow Lake, SK right in the midst of an international news story,” stated Al Balisky, president of Meadow Lake Tribal Council (MLTC) Industrial Investments. “These are very challenging times, a view shared by many people across all industry sectors. At this point, everyone is just waiting. You don’t want to take any missteps and you don’t want to be rash in decision making.” NorSask Forest products, located east of Meadow Lake, is owned and operated by the Meadow Lake Tribal Council. According to Balisky, NorSask, on average, ships anywhere from 50-70 per cent of its forest products to the U.S. “Everyone is thinking about the ‘what ifs?’, but, in the meantime, we wait and see, and we hope,” Balisky continued. “We are very confident sane, adult minds will prevail and we will get through this. We have such an excellent relationship with the United States… That market is super important for Meadow Lake, SK and I think I can also speak on behalf of the other local mills (Tolko and Meadow Lake Mechanical Pulp) when I say that.”

Trump’s tariffs were originally scheduled to take effect Feb. 4. Last week, however, these tariffs, as well as the announced retaliatory measures on behalf of the Canadian government, were postponed by at least 30 days. Prime Minister Justin Trudeau announced the temporary reprieve Feb. 3. According to the prime minister, in addition to implementing a $1.3 billion border plan – which includes deploying additional personnel, drones, surveillance equipment and helicopters – Canada is making new commitments. Trudeau said 10,000 frontline personnel are and will be working on protecting the border, while Canada will be listing cartels as terrorists, and the federal government will appoint a “fentanyl czar.” The prime minister also affirmed Canada will ensure there are 24/7 eyes on the border, and will follow through on a previous commitment to launch a cross-border strike force to combat organized crime, fentanyl and money laundering. Meanwhile, Trump also confirmed the news via social media, stating, “Canada has agreed to ensure we have a secure northern border… tariffs will be paused for a 30-day period to see whether or not a final economic deal with Canada can be structured. As president, it is my responsibility to ensure the safety of all Americans, and I am doing just that. I am very pleased with this initial outcome.” As for Balisky, he went on to say both of MLTC’s operations – NorSask and NorthWind Forest Products in Glaslyn – export forest products to the U.S.

“It’s just inconceivable how any of this is a good idea,” he added. “We are just tracking along with the rest of Canada in terms of what happens next. We are very grateful for the reprieve that’s happened. We were hours away, of course, from tariffs being implemented, but we got a break there which is great. We’re just hopeful and confident we will get to a place by the end of 30 days where we can look at a future we can count on.” Even if an agreement is reached, however, Balisky said a great deal of trust between the two countries has been broken. “Not just in terms of the tariffs, but what do you do about such uncertainty?” he noted. “It makes future planning very difficult when you have to concern yourself with the threat of tariffs. That’s no fun. You have to be brave in this world, and this just makes things so unstable. But, our mandate is we’re going to keep going. MLTC’s involvement in the forest sector is an important part of the local economy, so we’re doing everything we can to navigate all this topsy turvy talk right now.”

Balisky also drew attention to the ongoing dispute Canada and the U.S. have when it comes to softwood lumber. “We’re also in year number seven of an unresolved trade dispute on softwood lumber,” he said. “We’re currently paying 14 per cent on every shipment. Add 25 per cent to that and it becomes hugely challenging. It’s tough times for lumber and forest products across the whole sector. However, we’re totally committed to our employee base who count on these mills for jobs. We’re highly committed to keeping operations running as smoothly as possible. We don’t want to cause any undo worry at this point. We’re just navigating the situation like everyone else is, and hoping for the best.” Also concerned about the tariff threat and the impact it could have on such a long-standing local industry that has meant big things for the Meadow Lake economy is mayor Merlin Seymour