Forest Products Association of Canada Comments on U.S. Inflation Reduction & Consolidated Appropriations Acts
The recent developments made by President Joe Biden in the past few months have demanded the attention of many Canadian industries. The actions have strengthened situations for many American business owners. It also requires Canada to enhance its strategies and improve competitiveness to support the economy and avoid significant calamities. Forest Products Association of Canada (FPAC) urges the Canadian federal government and prominent Canadian industries to respond and act on Biden’s “Buy American” plan.
Biden’s “Buy America” measures issued last year were developed to ensure that money spent by the American federal government was allocated toward certain types of services and goods from the United States instead of other countries and foreign companies. Canadian goods exporters do not have to comply with the order’s requirements because Canada falls into the Canada-United States-Mexico Agreement (CUSMA) which is a trade agreement waived by the U.S. Trade Agreements Act. However, Biden also signed the U.S. Inflation Reduction Act and Consolidated Appropriations Act which prompts heightened competitiveness for the Canadian government and businesses.
Canada’s forestry industry is worth over $72 billion annually and contributes several billion in taxes to the federal and provincial governments. If both governments were to develop stable measures that prioritize clean growth to achieve a net-zero economy and green manufacturing in the wood and forest industries, FPAC believes that could result in an economic upsurge for the country. The association believes that the federal government should first adopt a pragmatic plan for carbon reduction and economic growth towards the forest and wood industries. Secondly, FPAC determines that Canada’s federal government needs to set workers in these industries up for success by focusing on key areas of growth. This includes establishing more effective regulations and policies to tax incentives and support for funding programs.
Finally, FPAC highlights why Canada needs to recognize the versatile potential of wood waste and low-grade wood. Both sources of wood are ideal solutions for renewable energy supply and power heating systems in various districts. As the need to expand renewable fuels and find optimal low-grade wood as fires and pest outbreaks are heightened, the association urges the Canadian federal government to enable decarbonization projects in different sectors. Several clean technology associations have recognized the potential wood residuals have.
Forest and wood industry leaders have also weighed in on the controversial orders and in the following months, this looks to continue. “We are seeking to better understand what this means for Canadian producers,” Coady said of Biden’s announcement. “Our focus remains on working on both sides of the border to maximize the opportunity Canada has in providing the sustainably produced, low-carbon lumber products we know American homebuilders, consumers, and construction workers want and need,” Linda Coady, council president of the B.C. Lumber Trade Council said.