Thank you.
Mr. Chairman, committee members, good afternoon. Thank you for the invitation to appear today.
The forestry sector is an important employer and contributor to Atlantic Canada's economy. In 2019, the sector employed approximately 19,200 people. Exports from the region totalled about $2.7 billion in products last year. Nearly three-quarters, or 72%, of those products went to the United States.
The region's forestry sector is in a period of transition, as global demand for wood products shifts, environmental stewardship increases and local demand decreases.
Three major issues affected the sector in Atlantic Canada. They were the closure of the Northern Pulp mill in my home province of Nova Scotia, the impact of tariffs and fluctuating prices, and an increase of spruce budworm population levels, primarily in New Brunswick.
At the Atlantic Canada Opportunities Agency, or ACOA, our programs are helping to grow the economy, create jobs and diversify the economies of communities.
We have flexible programming to support businesses across many sectors and community development measures.
We work with companies to build export capacity, pursue added-value projects, and invest in automation and product innovation. And through research and development activities, we work with industry to support the sustainability sector.
During the past 10 years, ACOA has invested nearly $60 million in approximately 200 projects related to this sector. These projects focused on sustainable forest management, research and development, innovation and diversification related to value-added products, public awareness and skills development.
In closing, ACOA will continue to work with forestry stakeholders—including small and medium enterprises, provincial governments, Natural Resources Canada and community leaders in the region—to ensure the sector can take advantage of emerging opportunities and continue to remain vibrant, in order to create jobs and help grow our economy.
Thank you for your time today, Mr. Chair.