Thank you, Madam Chair.

My name is Ian Dunn. I am the president and CEO of the Ontario Forest Industries Association. I'm also a registered professional forester. I represent over 50 member companies in the province, which manage mills that produce energy, electricity, engineered wood products, pulp, paper and, of course, lumber, and manage over 22 million hectares of public forest. Our industry contributes $5.5 billion in GDP; supports 137,000 direct, indirect and induced jobs; and represents a total tax revenue for all levels of government of $3.3 billion.

Since the last agreement ended, in 2017, Canadian lumber producers have approximately $10 billion on deposit in the United States—over $900 million from Ontario. This large amount of capital could be used to reinvest in local operations and communities, improving our competitiveness. The current iteration of the softwood lumber trade dispute is likely the largest global dispute since the end of the Second World War.

Like other Canadian jurisdictions, over the last 20 years Ontario's forest products sector has faced many challenges. We have seen industry consolidation and rationalization; investment dollars and capacity moving to lower-cost jurisdictions; volatile commodity prices and supply chain disruptions; and, of course, unfair and illegal trade action by the United States, our biggest and most important trading partner.

What has this meant for Ontario? What has this meant for the communities of Hornepayne, White River, Dryden or Dubreuilville? Well, it meant that the volume of trees sustainably harvested in the province was cut in half, from 28 million cubic metres to 13 million cubic metres most recently. Contribution to the GDP fell by approximately $2 billion.

Since the early 2000s, employment in the industry has fallen by half, from 80,000 direct jobs to around 40,000 today. Most recently, I've been hearing from some of our members, who will be reducing their operating schedule as a result of increased costs, weak pricing and anticipated duties for 2025, with others announcing further layoffs and closures. Many are small, family-run, independent companies operating in Ontario for generations. One gentleman I spoke with last week said that his family has held a licence to cut Crown timber in Ontario for 110 years, and he will likely be the last person to hold that licence.

At a recent convention, a representative of the U.S. industry stated, “From the US perspective, the softwood lumber trade case has been extremely effective, yielding results that one would expect.” Since 2016, Canadian mills have accounted for 60% of mill closures by capacity. U.S. mills account for 79% of expansions, while Canadian mills account for only 14%. U.S. mills accounted for 98% of new mill capacity, while Canadian mills accounted for only 3%.

This occurred in an environment of duties between 8% and 20%. The forecasted rate of 30% for August 2025 is a dramatic increase. It will likely threaten the profitability and viability of many Ontario sawmills already anxious about access to capital and liquidity.

Of course, it's not just the sawmilling industry that is impacted by lumber duties. Pulp and paper are typically made using the residuals generated as a by-product of making lumber. Without this valuable feedstock, the ability of Canadian pulp and paper mills to make this product becomes more challenging and expensive. In Ontario, over one year we have seen the idling of two pulp and paper mills and the permanent closure of a containerboard mill in Trenton. In 2006, there were 16 pulp and paper mills in Ontario; there are currently three operating.

Despite the challenges, Ontario is the only jurisdiction in Canada that has seen a substantial increase in lumber export rates to the United States.

New and exciting opportunities exist in biomaterials and bioenergy that could bring new investment and economic development opportunities to indigenous and non-indigenous communities across the province. Our forests are abundant, productive and sustainably managed. Ontario's forest industry is resilient, innovative and essential to our economy, communities and environment.

However, it is clear that the ongoing softwood lumber trade dispute, compounded by other economic challenges, continues to hamper our full potential. We call on all levels of government to focus on boosting the competitiveness of our sector, continue legal efforts while pursuing negotiations, and end this dispute.

Thank you.

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