Canada needs to develop its natural resources as fast as possible, says pulp and paper CEO
Canada's next government needs to focus on developing the country's natural resources as quickly as possible to ensure its economic future, according to the CEO of a pulp and paper company in northeastern Ontario.
"As a country, we have such massive natural resource wealth. And over the last, I'm going to say two decades, this country has struggled to be able to, to capitalize on those resources so that we have more financial capacity as a nation to battle these sorts of trade situations," said Kap Paper CEO Terry Skiffington in a panel discussion on tariffs on CBC's Morning North.
During the federal election campaign, Skiffington said he'll be looking for action on projects to develop Canada's natural resources. Those include developing the Ring of Fire mineral deposits in northwestern Ontario and building an east-west pipeline for Alberta's crude oil.
Skiffington said his own industry is already in a precarious position, and many pulp and paper mills would struggle to keep their doors open if U.S. President Donald Trump imposes broad tariffs on Canadian goods by April 2.
The Kap Paper mill, located in Kapuskasing, Ont., is the last remaining pulp and paper mill in northeastern Ontario, following the closure of Domtar's Espanola mill in December 2023.
In January, the mill received a $10-million loan from the provincial government to help diversify the business by building a biomass plant which would produce energy by burning wood.
Mike Da Prat—president of United Steelworkers Local 2251 representing 2,700 workers at Algoma Steel in Sault Ste. Marie— said his industry has already been hit by 25 per cent U.S. tariffs on Canadian steel and aluminum.
"Everybody's concerned, right?" he said.
"And the answer is we have to wean ourselves off of the dependence on the American market."
Since the tariffs, Algoma Steel has cut 29 jobs, but Da Prat said his members have not yet been affected.
The company temporarily paused shipments to the U.S. over concerns from the tariffs, although half of its production normally goes south of the border.
Da Prat said he'll be supporting the Liberals in this election because he feels party leader Mark Carney as the "only person that I'd see that has the credibility, and perhaps the experience, to attempt to redevelop new markets and reestablish old ones."
For Will Runnalls, a canola farmer near New Liskeard and chair of Ontario's Canola Growers Association, potential U.S. tariffs on Canadian crops would arrive on top of China's new 100 per cent tariffs on Canadian canola oil.
"With the potential of the tariffs starting next week to the States we're basically losing our two biggest markets," he said.
Runnalls said Canadian crop farmers depend on exports because of Canada's relatively small population.
He said there were discussions before the election about streamlining support programs for farmers, such as interest-free loans.
"But for the most part farmers don't want any more loans," Runnalls said.
"We need our export markets because we need free trade. So they're saying we don't want any handouts and we don't really want financial support."
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