Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Cancel Anytime
Enjoy Unlimited Digital Access
Canada’s most-awarded
newsroom for a reason
Stay informed for a
lot less, cancel anytime
“Exemplary reporting on
COVID-19” – Herman L
$1.99
per week
for 24 weeks
Get full access to globeandmail.com
Just $1.99per week for the first 24weeks
Just $1.99per week for the first 24weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

Stacks of logs of piled in a yard in International Falls, Minnesota.

Fred Lum/The Globe and Mail

Quebec paper and lumber producer Resolute Forest Products expects it will have to cut jobs soon as it faces U.S. trade actions on two fronts.

"It is unavoidable in my opinion because of the disruption in the market," CEO Richard Garneau said Thursday in an interview after disclosing weaker first-quarter results.

The Montreal-based company has deposited $43-million with the U.S. Department of Commerce for 17.87 per cent duties imposed in November 2015 on imports of supercalendered paper which is mainly used in magazines, catalogues, corporate brochures and advertising inserts. The annual cost of duties is about $25-million (U.S.).

Story continues below advertisement

It also expects to pay $17-million (U.S.) this year and $50-million annually for countervailing lumber duties.

Garneau said fighting both trade actions is very disruptive.

Resolute faces a 12.82 per cent preliminary duty for lumber, less than the 19.89 per cent retroactive duties applied to other Quebec and Ontario producers.

Garneau called both sums unfair given the market-based lumber pricing systems in Quebec and Ontario and said he's confident they will be lowered in the final determination later this year because American authorities used Nova Scotia's system as a benchmark and improperly applied Hydro-Quebec expenses in its calculations.

Still, Garneau expects the impact on Resolute and the Central Canadian lumber sector will be quick, with a reduction in sawmill shifts that will have a cascading effect on other jobs.

Resolute has 1,200 people working to support two supercalendered paper mills and 4,000 people in its lumber operations.

Garneau declined to say how many workers could be affected.

Story continues below advertisement

Unifor, which represents 24,000 forestry workers at 134 companies, fears duties will hurt 25,000 Canadian jobs, punishing small communities dependent on the forest industry.

Tembec CEO James Lopez said this week he doesn't believe job losses are in the offing at his firm, at least in the short term, while higher lumber prices offset imposed duties.

While each company faces its own circumstances, Garneau expects Canadian lumber prices will fall as producers try to ship more of their output within the country.

In its latest financial results, Resolute said it lost $47-million (U.S.), or 52 cents per share in the first quarter, compared with a loss of $8-million or nine cents per share a year ago.

Adjusted losses were $30-million or 33 cents per share, well short of the eight cents per share profit forecast by analysts polled by Thomson Reuters. A year ago, adjusted losses were $22-million or 25 cents per share.

Sales were also down one per cent, to $872-million.

Story continues below advertisement

On the Toronto Stock Exchange, Resolute's shares lost more than 6.5 per cent at $7.82 in Thursday afternoon trading.

The U.S. is imposing tariffs averaging 20% on Canadian softwood exports
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies