Industry Initiatives

Forestry is Canada's most important industry. In 2004, the forest sector contributed $36.8 billion to Canada's gross domestic product and $34.4 billion to Canada's balance of trade. In the same year, new capital investments in the industry totalled close to $3.1 billion.

One in every 17 Canadian jobs is in the wood and paper products or related industries. The sector directly and indirectly employs more than 916,000 people.

The Canadian Forest Service (CFS) of Natural Resources Canada is committed to ensuring the future economic well-being and long-term sustainability of this strategic Canadian industry. Working with the forest sector and other federal departments, the CFS addresses key issues on trade and market access and facilitates the continuing development of the forest industry.

Market Access

The federal government is responsible for international relations and trade.
The CFS therefore has the mandate to ensure that critical export markets remain open to forest products and that new markets are developed.

The CFS contributes to initiatives to liberalize international trade. It acts to protect the legal rights of Canadian exporters when trade disputes arise. It ensures that the trading system considers Canadian circumstances and maintains the principles of free and fair trade.

In partnership with other government departments, domestic organizations and Canada's international trading partners, the CFS works to ensure that Canadian forest products will not be unfairly discriminated against.

Economic Analysis

The CFS conducts economic research and analysis in the area of forest products. Some examples of research and analysis include analyzing industry's competitiveness, creating economic models for the forest sector, and examining trends in supply and demand and in the structure of the North American market.

Such information contributes to the development of balanced, cost-effective and well-targeted trade policies and industrial development strategies. The data also give the forest sector vital strategic information on emerging developments in the global marketplace. This information helps the sector foresee long-term effects of these trends on investment opportunities.

Industry Development

Supporting the continued development of the forest industry involves collaboration with key stakeholders. For example, the CFS seeks industry input on forestry policy matters through the Forest Sector Advisory Council. This committee of senior industry executives advises the ministers of Natural Resources Canada and Industry Canada. The CFS also works with industry to identify emerging market trends and opportunities.

Science and technology will be critical to the future of the forest industry and the national economy. The CFS is involved in a number of different research partnerships. Cooperative national research institutes are co-funded through partnerships with industry and federal and provincial governments. Such initiatives include Forintek, the Forest Engineering Research Institute of Canada, the Natural Sciences and Engineering Research Council and the Pulp and Paper Research Institute of Canada.