This report provides factual and analytical information about Canada's forests, and addresses topics and issues important to the development of the Canadian forest sector. In addition to providing an annual overview on the state of Canadian forestry, the report places particular emphasis on Canada's forests as a source of commercial timber, and on management and environmental issues related to timber production. A national forest account is introduced to show the changes in the forest resource as it is depleted by harvesting, fire and insects, and replenished through reforestation and intensive management activities.