Question Period Note: California deforestation-free government procurement bill

This bill in the California legislature could force U.S. companies to move their sourcing from Canadian forest-product suppliers, and may inspire similar bills in other states or at the federal level.

• Canada is concerned about the government procurement bill on boreal forest products currently before the New York legislature. We're also monitoring a similar bill in California which is only aimed at tropical deforestation.

• The New York bill will raise compliance costs for governments and suppliers alike, while putting jobs at risk on both sides of the Canada-U.S. border.
• Canada's forest laws are among the strictest in the world. Canada is also a climate leader and the U.S. and Canada collaborate closely on forest management.
• Canada is taking a Team Canada approach in expressing its concerns with this bill, working with provinces and industry to register our views with New York legislators.
• Canada will always stand up for the interests of Canadians in the United States.

Canada is monitoring deforestation-free government procurement bills before the New York and California legislatures. Canada's overall forest trade with the U.S. is substantial. In 2019, the U.S. imported US$17B in forest products from Canada (largest supplier by far), while the U.S. exported US$9B to Canada. However, the amount of government procurement of Canadian forest products from state agencies in New York and California is unclear but likely limited.

New York

The deforestation-free government procurement bills in New York that were introduced in 2021 (S5921 and A6872) remain alive in the two houses of the state's legislature for the 2022 legislative session. These bills would allow the state to discriminate against Canadian forest products in government procurement where the production of such products have contributed to boreal forest deforestation. GAC is leading a Team Canada approach to oppose these bills in broad terms as the bills could do real and reputational damage to Canadian forest products. Canada's Consulate General in New York continues to be the focal point of this advocacy work, convening meetings with bill sponsors, allies like the Forest Products Association of Canada (FPAC), and interested provinces to coordinate advocacy.

California

In 2021, Canada successfully advocated for the removal of language related to boreal forests in a bill before the California legislature that would have otherwise had the effect of discriminating against Canadian forest products in California government procurement. The amended bill was eventually vetoed by the California governor, who cited burdens on small business as the reason for his veto. The sponsor of last year's bill has re-introduced a similar bill (AB1979) in the California legislature this year. However, unlike last year's bill, the bill is focused solely on tropical forests and tropical deforestation, and the definitions in the legislation - including those of "forest policy" and "forest-risk commodity" - explicitly tie proposed new rules around government procurement to tropical deforestation without any mention of boreal forests. Canada will continue to monitor the bill.

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