Canada’s new government will double the pace of homebuilding to almost 500,000 new homes a year over the next decade. That alone will double the use of Canadian softwood lumber in residential construction – an increase of almost 2 billion board feet – and it will double demand for structural panels – an increase of almost 1 billion square feet.

The federal government is setting up a safety net of loans, product-development grants and market diversification plans for Canada’s softwood lumber industry in an effort to shield it from the worst of American duties and fees.

Canada will provide up to C$1.2 billion to help softwood lumber producers deal with U.S. countervailing and anti-dumping duties, Prime Minister Mark Carney said on Tuesday.