:
Mr. Speaker, it is a pleasure to rise to share some thoughts on a very important issue. It does not matter what side of the House one sits on; we all recognize that Canada leads the world in many different industries. One of those industries is our softwood lumber industry. We have, I believe, an incredible history of providing not only the United States but also other countries a first-class product. That is recognized.
I give a great deal of thought, and express appreciation and thanks, to those who have been there over the years to protect and foster growth within that industry. It employs thousands of people. It contributes billions of dollars to our GDP. It is a major force in our economy. Whether it is its direct jobs or indirect jobs, it should matter to all of us. We as a government, and the himself, have expressed concern, whether it is to the President of the United States or to others. This is an industry that Canada, and in particular our government, will be there to protect.
I believe an appropriate way to start my comments would be to read what the stated the other day on this very important industry. The minister said:
Mr. Speaker, the softwood lumber industry is a source of jobs and pride for Canadians across our country. We are extremely disappointed by the unfair and unwarranted decision of the United States to increase the duties it imposes on softwood lumber. This issue was raised, of course, by the Prime Minister at his meeting with President Biden. I have raised it with Secretary Yellen, as have all of our colleagues, and we have pointed out that these duties are adding to the inflation tax American consumers are paying.
This is not a new issue. We can talk about what we would argue on this side of the House are unfair practices taking place in the United States at times, and they are targeted at one of Canada's most valuable industries. This is not the first time. We have seen it on several occasions in the past. As a government, it is important that we speak as one voice, that we do not capitulate and that we recognize our voice is stronger if we unite in saying what is happening is not right.
In terms of free trade and the U.S., the relationship that Canada has with the U.S., the emphasis that we put on being a good neighbour and the economic ties between provinces and states, one needs to look at groups like our interparliamentary associations. We understand the dynamic. They have industry leaders within the United States, a significant, relatively wealthy group of people who are very effective at lobbying.
Because that is the case, we once again have duties and the U.S. has taken action that not only hurts us here in Canada but hurts Americans too. The U.S., from what I understand, does not have the ability to meet the demands of its market when it comes to softwood production. Canada, over the decades, has supplemented that supply.
As I indicated earlier, we have a first-grade product that is in high demand in the United States. However, the wealthy American mill owners and other stakeholders have been effectively lobbying to get these penalties put into place.
As a government, we have approached the very top political level: the President. We will turn to the free trade agreement that we ratified not that long ago, which includes Mexico. We will take it to the World Trade Organization as a government. I know the minister is on top of this file and recognizes the importance of it. We will do whatever we can to protect that industry, which is well represented in a number of regions including British Columbia, which has been hit very hard recently with rains. The province of Quebec and my home province of Manitoba have important lumber industries also.
Regarding jobs, indigenous communities often take the lead in providing the workforce. This industry supports so many communities in rural Canada. In many ways it is incredible.
The government, the the and the responsible are very much aware of the issue. To individuals who are following the issue, in particular those who are working in the industry and the owners who are trying to ensure that we can maintain our market share, the Government of Canada has their backs. We will continue to work with different stakeholders and appeal to members on all sides of the House to add value to the debate we are having tonight. It should not necessarily be a finger-pointing exercise. It should be recognizing that this has gone on now for many years. It predates this government.
That is why we have trade agreements. That is why we have the World Trade Organization. That is why we build the relationships that we have. There is no doubt in my mind that Canada will ultimately prevail, as we have prevailed in the past, because we are on the right side of this issue. We might not necessarily be able to prevent it from happening, although I sure wish that we could, but we can ensure at the end of the day that the industry not only survives but thrives into the future.
We have seen growth in export markets, whether to China, Europe or others, because it is important. The will tell us that we look at ways in which we can expand our export markets. That is why we have progressive, aggressive trade going on with agreements. We have signed more trade agreements than any other government. We have, that is a fact. It speaks volumes in terms of how this government recognizes the value of our exports because we see that in the actions we take every day.
In particular, workers can rest assured that we will be there to support them in the coming days, weeks or however long it takes to resolve this, and we will prevail on this issue.
:
Mr. Speaker, I want to start off by saying that I will be splitting my time with the member for .
I would like to provide the counterpoint to what we have just heard from the Liberal side, because we have to distinguish fiction from fact. The truth is, there is a long history to this dispute, going way back to at least 1982. It was a Liberal government under Paul Martin that finally tried to bring peace to the woods. This was called the war of the woods because we had ongoing battles between the United States and Canada on the softwood lumber issue. Unfortunately, Paul Martin failed to get a deal done, to get peace in the woods. His trade minister, Jim Peterson, failed to get an agreement for Canadians.
Then we had an election in 2006. Stephen Harper was elected prime minister of our country and he did something remarkable. He reached across the aisle and asked David Emerson to cross the floor and join his cabinet. He had one main task, and that was to resolve the lumber dispute. David Emerson had deep roots in the softwood lumber industry. He knew it well. Stephen Harper knew that David Emerson could get the deal done, and guess what? He did it successfully.
In fact, he was remarkably successful. He negotiated a seven-year softwood lumber agreement and bought peace for seven years. He also negotiated a potential two-year extension. On top of that, he negotiated a $4.5-billion U.S. repayment to Canada that went back to the softwood lumber producers in Canada. It was a big win for Canada. It was a big win for the Conservative government under Stephen Harper because it brought us that peace we needed in the woods.
That softwood lumber agreement needed to be ratified in the House through a ways and means motion, and guess what? The Liberals voted against it in 2006. Only one Liberal voted in favour of it: Joe Comuzzi. He boldly stood up against the duplicity of the Liberals at the time. We later ended up renewing that agreement, so we had a total of nine years of peace between Canada and the United States.
Today we find ourselves in a situation. For the last six years, the Liberal government, the and the have been continually promising to resolve this dispute.
In fact, I have here a CBC article going back to March 12, 2016. The headline is “[Canada's trade minister] heralds ‘real breakthrough’ on softwood lumber negotiations”. That was six years ago. That trade minister was quoted as saying, “We have now managed to get the Americans to the table, we have managed to raise attention to this issue at the very highest levels.” She went on to say, “I don't want to downplay to anyone the complexity—the fiendish complexity—of the softwood lumber issue [but] this was a real breakthrough.” That was six years ago. What happened to that breakthrough?
Time after time, when we ask questions in the House about how those negotiations are going, we are told we are going to get a deal, yet it has been six years. That, by any definition, is failure, especially when we compare it to the standard the Harper government set in negotiating nine years of peace in the woods. For six years we have had a war in the woods and that war continues. In fact, today we are in a situation where the U.S. has doubled tariffs on softwood lumber exports from Canada.
Shame on the government. Shame on the . Shame on the , who was trade minister when she made those bold statements. I know we can do better and Canadians deserve better.
:
Mr. Speaker, we are participating in a take-note debate tonight, which is designed to allow members to give their opinion on policy development on a matter of urgency. Today, the government has taken a delegation to Washington, D.C. ostensibly to talk about the softwood lumber dispute. I want to briefly, in the time I have, outline what the problem is and two ways to fix it.
We have to start by laying out the fact. The fact is that the American government has become more protectionist, particularly in its policies with Canada, under the tenure of the current government. My colleague from outlined some of the issues, but it is everything from some of the policies around dairy; the EV tax credits that my colleague from raised in the House during question period today; and the failure of the Americans to really respond to pleas on the Line 5 issue, and I know that the government was silent on KXL but certainly provincial governments were active on that. I could name many issues, but the doubling of the softwood tariffs suggests that something is very wrong with Canada's relationship with the United States. The question is, why? That is a question everybody in this place should ask, in a very sober tone.
The world has changed and it benefits all of us to have a strong relationship with the Americans, some continental economic unity and some continental integrated defence and immigration policies. It makes sense because the world has changed. When we look at supply chains and at trade, we need to be working with partners that are like-minded. Therefore, the question is this: Why has this relationship deteriorated?
I think it is Occam’s razor in this situation. I actually think that the relationship is just left fallow and the Americans do not care. I am sure they do care. I know there is one American who certainly cares about me. He might even be watching right now, and my condolences to him. However, I will say this: The American trade balance of Canada is such a small portion, about 2% of their export value, compared to ours that without the relationships that existed in the past and that do not exist right now, I just do not think the Americans are listening.
It has been very disappointing to watch the government allow infrastructure that was set up around the negotiation of CUSMA, like city-to-city relationships, the first ministers to state-level meetings, the business leader relationships and all that infrastructure that was developed, kind of be dismantled by the current government. I do not know whether that was through malfeasance or just atrophy, but without those relationships the government is not going to care. The first rule of foreign policy is they need to be able to pick up the phone to somebody that they have broken bread with and say, “I understand where there are commonalities and differences; let us work together on this.” I just do not think that has happened. Again, we are a rounding error to the Americans in a lot of ways. We have to make them care. That would be my suggestion for the government, humbly: Rebuild those relationships.
The last thing I will say is this. Knowing one American fairly well, I know that if he does not care about something I can either build the relationship with him or I can make him pay attention. Sometimes we have to make a trading partner pay attention and that, unfortunately, does come through retaliatory measures.
We do have measures to litigate, under CUSMA, that we have raised in the House this week. The government should be expressing plans for that to Canadian industry and should be putting its American partners on notice, but I would like to think that we can actually build that relationship again. There has been a lot of atrophy, but the government cannot say Donald Trump is in office anymore, so there has to be a purposeful building up of a relationship under Global Affairs, which has seen several ministers in a very short period of time.
There needs to be political leadership, a clear direction and an imperative from the government to make that relationship work at every level, not just at the ministerial level but state to province, municipality to municipality and industry leader to industry leader. If we are not talking to each other, really it is other actors around the world that benefit from the fact that we have not integrated our supply chains, that we are not working together and that we are fighting these silly trade wars with each other instead of uniting as a continent on certain values while retaining our sovereignty and our sovereign right to our economy.
That is what I humbly submit, out of respect, in this take-note debate tonight: Build the relationship and make them pay attention.
:
Mr. Speaker, since I just returned yesterday from an observation mission in Colombia, this is my first speech in the House since the last election—not counting the small point of order that I made earlier, of course.
I would like to take this opportunity to warmly thank the electors of Saint-Hyacinthe—Bagot for their renewed trust. I will do everything in my power to live up to this second term that I had the honour of being entrusted with.
Rather than engage in petty games by passing the buck and throwing accusations at either the Liberals or the Conservatives, I will try to bring the debate to another level, even if I do think that both are to blame. Focusing the debate on something else will only elevate the discussion.
First, let us quickly review the facts. Last week the U.S. administration announced that, starting in 2022, countervailing duties on Canadian softwood lumber will double from 9% to 18%, on average. Of all the companies affected, the primary victim is Quebec’s Resolute Forest Products, which will be slapped with a combined tax of 29.66%. That is why the Bloc Québécois wanted to have this take-note debate tonight, in which I am participating as my party’s international trade critic.
The trade war over softwood lumber is an old and never-ending issue. It has been said before, and it needs to be said again: There have been countless missed opportunities to resolve this problem.
The forestry industry accounts for 11% of Quebec’s exports. Our forests are a source of economic development, jobs, and tax revenue, and they have great ecological value. That must also be said. The forestry industry presents immense carbon sequestration and storage capacity, and it inspires many innovative Quebec SMEs to produce bioenergy and bioproducts. Some issues require international co-operation. The environment, the fight against climate change, and green trade are among them, and our wood can play a key role.
The new tariff war will hurt almost everyone. It will certainly hurt us because it could result in a large increase in the price of lumber and serious consequences for our businesses and the 25,000 direct Canadian jobs tied to the sale of softwood lumber to the United States. Things will not necessarily be any better in the United States either. The cost of housing will increase, which will further restrict Americans' access to housing, even though the Biden administration is claiming that access to housing is one of its priorities. Who will win in the end? The U.S. lumber lobby and a few politicians who see that the mid-term elections are quickly approaching.
Let us review the facts of this matter. Year after year, the United States accuses the Canadian forestry industry of benefiting from public subsidies that hurt the American sector. The American decision is based on what could be called a structural dynamic. This happens a lot. This is not the first softwood lumber crisis. There have been four rounds of trade conflicts: in 1982-83, in 1986, from 1991 to 1996 and from 2001 to 2006. We are now at the start of a fifth conflict.
It makes no sense. Canada has turned to the World Trade Organization and North American Free Trade Agreement dispute resolution bodies for help several times.
Canada has won all of its cases. In May 2020, the WTO even said that Washington had not been objective or fair and that its tariffs were unlawful.
Free trade agreements generally set time limits on disputes to prevent them from dragging on. The Americans knew that they would lose their case, though, so they did what they always do. They used every trick in the book to stall the arbitration tribunal, for example, by filing petitions to take up the tribunal's time or by blocking the appointment of arbitrators. The longer this goes on, the worse things get for our forestry industry.
The Americans’ strategy is therefore clear: Set tariffs that they know will be found to be wrong and take advantage of the years they are in effect to bankrupt, or at least undermine, the Canadian industry. This will allow the United States to further develop their industry in the meantime, modernize it, improve its competitiveness, and therefore get a head start.
That is what is behind the push for a trade war. Is this not precisely what can easily be described as unfair competition? It seems to me that it is. Still, there have been many missed opportunities to address this.
The Canada-United States-Mexico agreement, or CUSMA, passed in the House in March 2020, represents a very large missed opportunity in this regard. CUSMA needs to be amended. The government could have taken the opportunity to close these loopholes when renegotiating North American free trade over the past few years to ensure that the litigation process is much better regulated so that we could avoid overly long delays when time is not on our side.
There is also another item that needs to be amended in CUSMA. It should provide for a permanent softwood lumber advisory board. I tried to introduce a similar amendment in the House in March 2020, but unfortunately it was rejected by the Chair.
This brings me to another urgent matter, that of getting the Quebec system recognized.
Since 2013, Quebec's forestry regime has been fully compliant with the free trade framework and requirements, which should save it from vagaries like the ones we are experiencing right now. The regime is simple to explain. One quarter of the timber from the public forest is sold at auction, where anyone can bid. The price obtained is then applied to all the timber from public forests. This system is very similar to the one used in the United States. The price of timber is set by the market, not by the government. It is not subsidized, which passes the free trade test 100%. It was actually designed specifically for that purpose.
In contrast, that is not how B.C.'s stumpage system works. In that case, it is set by the government. Recognizing the specificity of the Quebec system would save us a lot of trouble.
I will make an aside to talk about one of the reasons I am in politics. When people ask me why I am a sovereignist, I tell them that it is so we can have the power to sign our own agreements and treaties, which sounds a bit abstract and seems quite theoretical. However, here we have the perfect example, and it is a fairly typical case: we want to be able to negotiate on our own behalf, in our own interests, instead of letting a government that does not see us as a priority do it for us.
Of course, in the short term, the government urgently needs to support the industry with a loan and loan guarantee program, to match the amounts being withheld by Washington. It is the only way to get through the crisis.
Ottawa could also argue for an exemption for timber from private forests. Although the vast majority, or 90%, of the timber harvest in Quebec comes from public forests, certain private forests are quite large and have real value in some regions, and therefore deserve our attention. The point to be made is quite simple. The Americans wag their finger at public forests, saying they do not respect the free market system and they benefit from hidden subsidies. Why, then, is timber from private forests, which I would point out is not subject to the Quebec regime, also subject to these new tariffs? This should be a very simple argument for our friends in government. It seems to me that it should be pretty easy to argue that.
Since the new duties do not apply to processed products, as my colleague from Jonquière mentioned earlier, this is a great opportunity to develop a value chain to promote the processing of forestry products. I think this presents a great opportunity for secondary and tertiary processing.
What does the government do? It tells us it is working very hard for all Canadians and that softwood lumber is a priority that it is, and I quote, “vigorously” defending.
Two weeks ago, the Prime Minister took part in the first three amigos trilateral summit in many, many years. Barely one week later, new softwood lumber tariffs were announced. Make of that what you will, but there is still a problem here. Tomorrow, the will be in Washington. Let us hope for better results.
Will the government take a firmer tone? Will it retaliate with measures on U.S. goods?
We will have to wait and see. We have yet to hear any real announcements. Empty buzzwords like “priority” and “vigour” have run their course. Now, a major industry—
:
Mr. Chair, I thank my colleague for his question and the opportunity to provide some details.
With respect to the benefits of forestry, we have seen some extremely innovative businesses. They are developing derivatives, wood-based bioproducts, rather than relying on yesterday's energy sources. I think that is one way forward along with other energy sources of the future.
We are a nationalist party. We are not against economic nationalism. There are issues we have to deal with on a continental and global basis, and the environment is one of them.
It took centuries for trees to develop. It is almost miraculous. All kinds of studies on trees show that their benefits are legion, ranging from oxygen to well-being. Some studies show that they improve well-being and create cool islands. Trees are all pro, no con. They supply us with extremely high-quality wood.
There is no doubt that the forestry industry has not always been up to snuff. I recall a film that made an impression in Quebec. It was called Forest Alert and was produced by Richard Desjardins, a great Quebec artist who is popular with all my Bloc Québécois colleagues.
Fortunately, things have changed, and this is a sign that social movements must continue to mobilize. Today, we have a great industry. We have a great sector that can always do better, of course, as long as it has the support of the public and a strategy, and political priorities are put in place.
:
Mr. Chair, I would like to congratulate you on your appointment. I have heard great things about your wisdom, and I look forward to working with you.
I will be sharing my time with the member for .
This is my first speech since being re-elected, and I want to thank the people of Timmins—James Bay. It is very moving to me that, in the first speech I give, I am speaking about an issue that is impacting our communities. I am thinking of the incredible community of Elk Lake and the mill workers there. The EACOM mill in Timmins has been taken over by Interfor. They are people with an open-door policy and they welcome me to the mill. I have visited with the workers and seen the production lines.
One of the things we learned from the long crisis with softwood lumber is that we lost so many mills in the north, along with the collapse of the paper industry: the loss of Smooth Rock Falls, the loss in Kirkland Lake and the huge loss of the Abitibi mill. However, the mills that survived became very efficient. Just this spring I was talking to representatives from EACOM, who said they were finally having a good year. They were finally starting to reinvest, and then they got hit with this. This is an issue that we have to address.
I am not going to attack my good friends over on the Conservative side, but their sense of history is, I find, a little strange. Yes, Stephen Harper signed a softwood lumber agreement, but he came in and threw out every WTO win that we had. We had won at the WTO time and time again, but then the agreement was that we would take a billion dollars' worth of subsidies that our industry had to pay, which should have come back to us, and give $500 million to competitive mills in the United States. Do members not think those mills thought that was a great idea, and that as soon as the softwood lumber agreement ended, they thought they would hit up Canadian companies for more money? The fact that our industries had to subsidize American competition shows how wrong this is. That is the history of this.
In six years, the current government has not negotiated the softwood agreement, and it has an effect. It has been a ticking time bomb. When the Biden administration came in, we knew it was going to take a hard line on job protection, and I do not hold that against it. I do not hold it against Joe Biden that he is standing up and saying he is going to fight for good union jobs. I have never heard the say that. I wish he would.
What worries me about the is that he is like the last of the Davos free traders. He believes that he and the can go to Davos and talk about this great international order where all the trading partners make agreements, but that is not what is happening. Around the world, countries are defending their own financial interests, and we have been left out in the cold. We saw it with the inability of our country to make PPE when we were hit with the pandemic, and our inability to make sure our people were safe with no investments in vaccines. Well, Brian Mulroney sold off our vaccine capacity, but the Prime Minister was going to trust in the international market. The Americans were investing in massive amounts of medical research during the pandemic so they would never be in that situation again. We were hoping for the best, and that is what we have been hoping for with softwood. We are hoping for the best, that everything will work out.
The and the went to Washington on November 17. This was going to be the big hug. The Prime Minister was going to do the schmooze charm. Seven days later, the Americans hammered us. What did the Prime Minister say that pissed them off so badly that within seven days, they doubled the tariffs on us? I am not sure the trade minister even mentioned softwood. We never heard any talk about it, but within seven days of their being there, we got hammered.
We know how the Americans are going to operate. We know where they stand, and we know how they will bend to their lobbyists and their vested interests in Washington. That is not news to us. The question is what we are going to do to stand up for our industry, our workers, the union jobs we need to defend in forestry and the auto sector, and the massive transformation we need to make in the energy markets. We have not heard that from the .
Now the Liberals are telling us it is complex. “Trust us. Trust us,” they say. The workers in Elk Lake, the workers in Timmins, the workers in Cochrane and the workers in Kapuskasing, in my region, are not going to trust. They want to see action.
:
Mr. Chair, as this is the first time I have been able to rise for a speech, I want to thank the residents of Windsor West, and I could not think of a more appropriate way to start this engagement.
My riding represents 40% of the daily trade that goes to the United States, between 30,000 vehicles and 10,000 trucks pre-COVID. It is returning to that level. As well, we date back to the underground railroad by which slaves escaped to our community of Windsor, across from Detroit. We were there for the War of 1812. We were there for times when Detroit came over to fight fires in Windsor, and during 9/11 we sent our firefighters there, so we are very much ingrained with U.S. culture and the U.S. economy. In fact, during COVID-19, around 2,000 health care professionals have gone over daily as essential workers to the United States, to serve in their hospitals as doctors, nurses and other health care professionals.
At the end of the day, we have a broken relationship with the United States. This is a part of the problems we are facing with softwood right now. Ironically, this June it will be 20 years since I first attended my original lobby as an MP with Pierre Pettigrew, the then minister of international trade. Down at the Canadian embassy we lobbied against softwood lumber tariffs for this country and this nation. Many times I have been down there as part of the Canada-U.S. Inter-Parliamentary Group, in a non-partisan fashion, to continue to push the issue.
However, the reality is that what we have seen over the last several years is a breaking down of that relationship, and it really is at the feet of the current government right now. It is going to take a conscious effort to reverse that course. We look at the situation with the USMCA, the CUSMA, the new NAFTA or whatever we want to call it, and the fact of the matter is that Canada was outnegotiated and outmanoeuvred even by Mexico in signing that agreement. The progressive forces, senators and congresspeople who I am very familiar with in the United States took note that Canada originally wanted an agreement that did not include the environment or labour. It was Mexico and the United States that added that component, and later on Canada had to come back to the table to ratify that change.
I can tell members there is a two-way breakdown here that is very succinct. A good example, though it might seem like a small one, is that Canada is negligent on our fisheries commission contribution, which is around seven to nine million dollars, to fight lampreys in the Great Lakes. We refuse to pay the bill.
We have ourselves wanted to build a nuclear waste facility off the Great Lakes, where the United States did not do it because Canada, under Joe Clark, asked that they not do that on the American side. We have a series of different issues that have emerged, and they were front and centre when, most recently, the government went down to the United States to push on EV vehicles. In fact, when we signed the original NAFTA, it hammered communities like mine, which actually lost the auto industry compared to what it used to have, because in the new NAFTA we lost the auto pact, a favourable trading position that was negotiated by previous governments.
They went down there, and when they came back I had never seen anything like that. As the member for noted, they actually got another repercussion, which previously was not even in their rear-view mirror, from what they could see or what they would admit. This is equivalent to rubbing the dog's nose in it. That is what took place. It is very significant and shows the breakdown we have, which has become more significant.
However, I do not want to stop without saying that with these tariffs we have to remember that they are jobs, families and value-added work that men and women have done. I know my whip just recently lost another plant in her riding, another mill that was closed. As New Democrats we have called for sectorial strategies for auto, the lumber industry, oil and gas and a series of different industries, so we are not dependent upon rip and ship. The negotiation tactics we have to push back against are buy America and other protectionist policies that are in the United States. They are part of their culture, and only if we develop our sectoral strategies will we have weight at the table to push back against this protectionism.
:
Mr. Chair, I will be sharing my time with the member for .
I want to thank all hon. members gathered here this evening to discuss yet another unfair trade action against an industry that deserves much better from our American neighbours.
The softwood lumber industry is one of Canada's largest employers and has been throughout our history. It is woven in the sinews of our nation and a source of pride for Canadians. Many of the thousands of jobs are challenging and involve tough work in remote places, but the work is rewarding and contributes to the strength of Canada's middle class. It is especially vital to indigenous communities, whose relationship with our forests dates back centuries. Therefore, it is disheartening for these workers and their communities to face increased duty rates as part of the continuing, unfair and unwarranted U.S. trade action.
Our government is deeply disappointed and we have expressed our frustration to our American counterparts at the highest levels. I hope all members will work through interparliamentary forums and use any and all contacts we all have, whether through business, family or friendships, to make clear our position across the border. It is imperative that we take a team Canada approach. Our shared message today is that these are unfair duties that are bad for workers on both sides of the border and they have always led to higher U.S. housing construction costs, something that no economy in the world needs right now.
I can assure my colleagues that we have and will continue to vigorously defend our industry and its workers, and we are confident of success. Why? Because over decades, regardless of which party was in power, Canada has fought similar actions. These legal battles are expensive, lengthy and painful for vulnerable communities, yet trade tribunals have ruled consistently in our favour. While we are confident in our legal position, we must also do everything we can to help impacted communities, and our track record is strong.
During the height of the 2017 dispute, our federal government launched a task force with our provincial colleagues right across the country to consult on ways to defend the industry and its workers, and their respective communities as well. We followed that up with the $867 million softwood lumber action plan. It included market and product diversification initiatives and programs to assist affected workers. We have continued to invest in this industry.
In 2019, we renewed the forest sector competitiveness programs, an investment of $251 million over three years. These programs support market access and encourage innovation in order to create new opportunities for the sector. We have had numerous success stories, including many that have also advanced our federal government's robust plan to reach our 2030 and 2050 climate goals.
We are seeing tall buildings go up in B.C. and Quebec, built principally from wood fibre rather than steel and cement. Car part components made of wood are also making vehicles lighter and more fuel efficient. We believe Canada can capitalize on an emerging global bio-economy expected to reach $5 trillion annually by the end of the decade.
We have also made major investments to confront infestations of the mountain pine beetle, the spruce budworm and the emerald ash borer.
There are many other examples to illustrate how our government has defended this industry and its workers, and that should give all members and all Canadians the confidence that we will do so again.
:
Mr. Chair, I am thankful for the opportunity to speak about the actions that the government has been taking to support Canada's interests in the softwood lumber dispute with the United States.
First, as this is the first time I have risen in this 44th Parliament and, in fact, ever, I would like to start by thanking the constituents of Aurora—Oak Ridges—Richmond Hill for sending me here and for putting their trust in me.
Despite some accusations to the contrary, I can assure members that we are continuously engaging with the Government of the United States to convey the importance of a successful resolution to this dispute. We have been very clear that Canada believes a negotiated agreement with the United States is in both countries' best interests. However, we will only accept a deal that is in the best interests of our softwood lumber industry, our workers and our communities. A deal that protects Canadian jobs is a priority.
The United States has always relied on imports of Canadian lumber to fill the gap between its domestic production capacity and the demand for lumber. Imports from Canada have historically met about one-third of U.S. demand. U.S. consumers need our lumber to build homes and other projects. It is clear that imposing unjustified duties on such a large portion of U.S. consumption is counterproductive in combatting rising inflation and housing costs.
The U.S. National Association of Home Builders has highlighted that duties on Canadian lumber exacerbate already high lumber prices and directly increase costs to consumers. This is in direct contradiction to the United States' goal of increasing housing affordability. The association is able to see a solution to this problem that evidently the United States government has not yet realized.
A negotiated settlement that brings stability and predictability to the softwood lumber industry is the best outcome for everyone involved. Unfortunately, the U.S. lumber industry encourages the U.S. administration to refrain from engaging meaningfully in negotiations, preferring the continued disruption to lumber supply caused by these duties, to the detriment of U.S. consumers and our workers. Nevertheless, our government has been persistent in encouraging the United States to return to the negotiating table to find a mutually acceptable agreement.
The entire government is involved in this effort. The has personally raised Canada's concerns with President Biden on many occasions. The recently raised the issue with U.S. Secretary of State, and senior Canadian officials, including our ambassador to the United States, are in constant contact with our U.S. counterparts.
The has taken a strong lead on these efforts. Earlier this week, she spoke with her counterpart, the U.S. trade representative, to discuss softwood lumber among many other important trade issues. The Minister of International Trade is actually in Washington, D.C., as we speak, where she will again work to advocate for Canadians and build partnerships with like-minded Americans.
As with all Canada-U.S. trade irritants, we fundamentally believe that a win-win solution is possible. It serves neither Canadians nor Americans to put up unjustifiable trade barriers that harm our mutual prosperity. At the same time, the government will continue to vigorously defend Canada's softwood lumber industry and will stand up for our forestry workers and communities in every way possible.
:
Mr. Chair, I will be splitting my time with the member for .
While I am pleased to have the opportunity to speak today, it is unfortunate that we are here late tonight having this take-note debate on softwood lumber as a result of the Liberal government’s continued mismanagement of our relationship with the United States.
Softwood lumber is a critical industry across the country, particularly in my home province of British Columbia and in the Okanagan. Workers in this sector have been looking for certainty and stability through the finalization of a new softwood lumber agreement. The last softwood agreement, negotiated and signed by a previous Conservative government, expired in October 2015.
Despite the Liberal pledging to negotiate a new agreement after the Liberals formed government, six years, four trade ministers and three different U.S. administrations later we are still waiting. The Liberals also failed to negotiate softwood into CUSMA.
Last February, because of my role at the time as shadow minister for international trade, I led, on behalf of our Conservative caucus, the forming of a special committee on Canada-U.S. economic relations, as there were so many serious issues the Liberals were mismanaging. The softwood lumber sector had seen thousands of people lose their jobs.
Despite the touting his relationship with the U.S. administration and President Biden, that same administration has now formally announced a doubling of tariffs for our softwood lumber sector. Our relationship is strained, and instead of moving softwood lumber issues forward, they have gone backward.
The 's inaction on getting a new softwood agreement with the U.S. is devastating for small businesses and workers in forestry. My community has seen this first-hand. Kelowna-Lake Country used to have a thriving forestry sector, with good jobs and many in the community relying on its success. However, uncertainty and poor market conditions led to over 200 people in my community losing their good jobs at the mill over the course of two years, and the final blow was the mill closure in 2020, a mill which had operated and supported families for over 80 years.
Close to 10,000 businesses, large and small, provide services across the value chain for the forestry sector in British Columbia. They rely on the sector thriving to make their payrolls, employ workers and reinvest in their communities.
Despite the U.S. announcing its plans to increase countervailing duties on softwood lumber last May, we have seen no concrete evidence that the Liberals made any effort in that time to convince the U.S. that these duties are unjust. The Liberals had five months to act, and what we saw in that time is they were prioritizing an unnecessary election instead of acting for Canadian forestry workers this summer. On top of this, our supply chains with the U.S. are integrated, and this uncertainty has led to higher pricing, which ultimately leads to higher construction costs.
The Conservatives have pressed the Liberals to act time and time again. Last spring, when the U.S. announced its intent to double softwood tariffs, my Conservative colleagues and I called an emergency meeting of the international trade committee to hear what actions the had taken and was planning to take to stop these countervailing duties from happening. What we got instead was the trade minister unable to tell us of any action she had taken, not even whether she had met with U.S. counterparts following the countervailing duty announcement or whether she had discussed it with the ambassador to the U.S.
When I asked the last spring why she was not acting on U.S. plans to double softwood duties, she said she was disappointed that the U.S. was doing this. These are comments she has made again. In a readout of a meeting the trade minister had with her U.S. counterpart yesterday, she once again said that she voiced her disappointment.
Being disappointed is not equivalent to taking action. If I were to tell a B.C. forestry worker not to worry as the has expressed her disappointment to the U.S. administration on softwood duties, I highly doubt they would find that overly reassuring. Being disappointed will not magically resolve the softwood dispute.
We need to see concrete action from the and the Liberal government to get a new softwood agreement. Our forestry sector depends on this, and it is time the Liberal government takes this seriously, as it is part of our country’s economic recovery.
:
Madam Chair, the U.S. and Canada share the world's longest international border and have been allies for more than 150 years. This past year, the has been concerned with cross-border relations. He has been concerned with electric vehicle production and border carbon adjustments. He has been concerned with climate change in his own country, and he has not been very concerned with the softwood timber dispute.
President Biden does not have much respect for our because former prime minister Brian Mulroney got deals done. Liberal prime ministers after him got deals done, and former prime minister Stephen Harper was actually managing to get exemptions for Atlantic Canada. Under the current Liberal government, New Brunswick, Atlantic Canada and all of Canada are facing more than double the tariffs that we were already struggling with.
The Obama administration sent the Department of Commerce into a deep dive to determine how the United States could get something they wanted and how the country of Canada could not get something it wanted. The basic rules of friendship are to respect each other. This is an over 150-year relationship. We are two nations that have always managed to get something that is in the best interests of their nations.
Right now the United States has no respect for our country because our is weak on the international stage. This is part of the problem we are facing right now. The Clintons gave the a nice endorsement at election time knowing how easy it would be for the Americans and their buy America campaign. Everyone worried about President Trump and talked about how bad Republicans were. This started under President Obama, and it has been doubled twice, now again under President Biden. This is actually a liberal agenda stemming from the United States, which our Liberal government here has no impact to counter.
The forestry sector is crucial in New Brunswick, as it employs thousands of New Brunswickers. The government must stand by lumber producers for our communities. It has not been able to do it. The evidence is very clear. I have three or four mills in my constituency and many communities benefit. My father was a logger. My grandfather was a contractor. The forestry industry runs deep in my blood. There are a total of 24,000 jobs and the sawmill sector alone in New Brunswick is the foundation of those jobs.
Tonight, I heard Liberal members across the floor standing up in total hypocrisy talking about how they are going to prevail. Where have they been when right now the evidence is that they have failed not once, but twice? Now we are expected to believe they are going to prevail. They are not going to be able to prevail because the is failing on the international stage. This one is affecting all of Canada.
I would like to say to the people of New Brunswick and the people of Miramichi—Grand Lake that Conservatives are going to keep the government accountable because right now Liberals are unable to do any damage across the border. When we have a 150-year relationship, we should be able to say what is good for them, and what is good for us, and then make a few deals. They are the basic rules of trading. There has to be something that we are exporting to the United States that they depend on our country for. There has to be something more important than electric vehicles.
The government across the floor has no interest in fixing this issue right now. Canadians were promised a renewed relationship by the and, instead, what do we get? An EV tax credit that threatens Canadian auto manufacturing, stringent buy America policies, measures targeting agricultural exports and actions against energy pipelines, which are contributing to skyrocketing energy prices, just like the inflation on everything else in this country.
Now the United States is at it again, doubling tariffs on Canadian softwood. What is going to be done about it? The hypocrisy from across the floor is that they will prevail. That sounds great. On behalf of the people of Miramichi—Grand Lake, I ask how they will prevail.
Tonight I am proud to speak for New Brunswick and New Brunswick companies. We need a government that will put them first on softwood timber.
:
Madam Chair, I will be sharing my time with the member for .
As this is my first opportunity to speak in this House during this Parliament, traditionally we all thank our voters, I will thank them, but also pledge to do my very best to uphold both their interests and their dreams for Canada.
Their interests do extend to softwood lumber and this issue. I know that causes some amusement, but we actually believe that an injury to one is an injury to all, and we can actually all be engaged in this issue equally and care. It may be that people in my riding use those products or they have a corporate interest in those mills doing well, but nonetheless, they care about this issue deeply and profoundly.
I would also add that personally, I actually care about it a lot, having grown up as the son of a professional forester who worked in northeastern Ontario for some 40 years, providing softwood lumber for mills in northern Ontario. The fact that my education was paid for, at least in part, by my father's work in the forest industry means that I am committed to this issue personally and passionately. Because I live in an urban centre now does not make me any less committed to the working class, the people who build this country, in every sector, whether it is the extractive industries, the softwood lumber industry or other industries, including agriculture.
The softwood lumber industry has been unjustifiably targeted by these U.S. duties once again. The softwood lumber dispute is not a new trade irritant between our countries; it is an ongoing one that flares up consistently and constantly. I will agree with every member in the House that it is not fair. It is unfortunate that our largest trading partner fails to see the harm that it is causing on both sides of the border.
Our countries have a highly integrated forestry sector. It relies on predictability and stability to maintain the supply of lumber and meet the demand, which is incredibly high in the United States right now, and that is to make sure we have prosperous economies in both our countries. As a trading nation, Canada has rested and will always rest itself into the international rules-based order, and that trading system, which is dependent upon people playing fairly. We will try to ensure that Canada and Canadians receive fair treatment in the global market at all times.
In a relationship as large and as important as the one we have with the United States, there are bound to be trade irritants. That is normal. Relationship building at all levels, respect for the rules-based trading system and enforceable trade dispute settlement mechanisms are the keys to resolving these irritants.
I would say that this is not a partisan issue. I think in the House we all need to agree that we need to work together. The reason we were able to keep the trade dispute mechanism in the new NAFTA, in CUSMA is that Conservatives, NDP, Bloc Québécois and Liberals worked together with industry partners to ensure that we got the best trade deal possible. In fact, we improved upon the old NAFTA. We were able to keep that trade dispute mechanism alive, because we worked together.
There is no failure of leadership here. There needs to be an engagement co-operatively with the imagination that I am hoping all members of the House will bring to this issue. We need to be working together on this. The has said very clearly that she wants help, she wants ideas and she wants to engage with every member of the House to ensure that happens. That means engaging with people we know who are legislators in the United States, so they hear the story of Canada and are reminded that their interests, as well as our interests, are bound together in this.
They need our wood, as simply put as that. They need it. We have it. We will supply it well, and our industry needs to be effectively protected by the international rules-based order. We will do it. Our is committed to it. We are committed to it. I know the House is committed to it, and I look forward to working with members and their creative solutions that can only improve our approach on this issue.
:
Madam Chair, although this is not the first time I have risen in the House since we returned, I should take a moment to thank everybody in Fleetwood—Port Kells for sending me back here for a third time. I do not know if they just wanted me out town or if they really like the work that we have been doing, but I presume it is the latter.
I am pleased to join my colleagues in defending our forest industry, and referring to the comment from my colleague for , this is what we are all here to do. We are all here to defend the sector, its workers and the suppliers, and a huge contributor to our economy across the country.
We are dealing with the latest set of unfair and unwarranted duties by the United States. I think we can assure Canadians that we do have means at our disposal to defend the workers and communities that depend on the work that they do, which includes, by the way, indigenous people who, in many places, rely on this vital part of our economy. Canada will use all the methods at our disposal to combat unfair trade actions by the United States as we have at every stage of this dispute over the years. This includes legal recourse available under our bilateral trade agreements in the World Trade Organization. Time and time again, we have won. Panels in these venues have consistently ruled against U.S. duties.
Our government will do whatever else we can to defend workers and communities, just as we did in 2017 when we came up with the $867 million softwood lumber action plan. That was a plan that focused on expanding markets and diversifying products, and on assisting workers, including those transitioning to other parts of the economy.
In the long run, we have an advantage. We have a vast, healthy and unusually resilient forest ecosystem, with parts of B.C. this year being an unfortunate exception. We have an ecosystem that absorbs carbon pollution. In fact, there is no path to net-zero emissions that does not involve our forests. Our government has underscored this reality with a plan to plant two billion additional trees over the next 10 years. This is expected to reduce greenhouse gas emissions by up to 12 megatonnes annually by 2050.
Canada is also taking global leadership in reversing tropical forest loss and land degradation. It makes sense that we are out in front in this area, because our strong system of forest laws, monitoring and enforcement ensures sustainable forest management practices across the country. Canada is home to 9% of the world's forest, but we have 36% of the world's sustainably managed forests.
Canada's forests are monitored closely. Each year, the Government of Canada publishes “The State of Canada's Forests” annual report. It tracks a number of indicators pertaining to sustainability. The government will continue to work with industry, provinces and territories to protect and sustainably manage our forests, because that is our long-term advantage, but as today's debate highlights, we need to invest in order to encourage this industry's transformation.
One example is the investments in the forest industry transformation program. It supported innovation for more than a decade and, to date, it has successfully funded 43 capital investment projects. These initiatives have secured approximately 6,600 forest-sector jobs and another 450 innovation-related jobs. The program supports forest-reliant communities and improves the environment and performance of the sector. These projects help diversify the forest product market through high-value bioproducts, such as bioenergy, biomaterials, biochemicals and next-generation building products.
Budget 2021 recognized the program's success by injecting up to $54.8 million over two years starting this fiscal year to increase its capacity. We also recognize, as I said, how important this sector is to many indigenous communities, which is why we are investing to create forest-sector jobs as well as increased knowledge and economic opportunities.
Normally when we are in a negotiation with somebody, we expect to deal with somebody who is rational. However, we have seen over the last number of years any number of irrational decisions made in the United States or by Americans. These are interesting and difficult times, but as my colleagues have suggested, we have the means at our disposal, the patience and the talent to get this over the line successfully.
:
Madam Chair, I will be splitting my time tonight with the member for .
As this is the first time I have risen in this 44th Parliament, I would like to take a minute to thank the constituents of Desnethé—Missinippi—Churchill River for re-electing me and sending me back to Ottawa to be their representative. It is a privilege and a responsibility that I do not take for granted. I would also like to thank my entire team for their time, their effort and their professionalism during the campaign. Without an awesome team, none of this is possible.
Last, I would like to thank my family, and especially my wife Lori, for continued support on this journey. For many of us, I know the support of our spouses makes it possible for us to do this important job.
The debate tonight has a direct impact and far-reaching consequences for the people of Desnethé—Missinippi—Churchill River. The forest industry in northern Saskatchewan is an economic driver that provides direct and indirect employment to approximately 8,000 people. Forest product sales are worth over $1 billion every year, and 30% of the timber supply in northern Saskatchewan is allocated to indigenous businesses. This is the highest of any province in Canada, and indigenous people make up roughly 30% of the forestry workforce, which again is the highest of any province in the country.
These stats only look at the current situation. With long-term growth in the sector having the potential to generate over $2 billion in annual sales and well over 12,000 jobs, this vital renewable resource industry is in a growth phase and is proving to have the ability to bring Saskatchewan residents together to solve many of the socio-economic problems in our communities.
Just yesterday, there was a major announcement made between Paper Excellence, the company that is restarting the pulp mill north of Prince Albert, and One Sky Forest Products, which is building a new oriented strand board mill. These two companies are moving together on a co-location partnership. They are sharing log storage areas and existing infrastructure, including electrical, natural gas and rail lines. The shared purpose in this collaboration should be celebrated as an example of navigating problems through mutual coordination and respectful dialogue. This is something that the Liberal government could learn in its dealings with the United States administration.
The development of these large forest-product manufacturing facilities is one of the many reasons why northern Saskatchewan, in September, was in the top 10 across the entire country for job growth. It is a statistic worth emphasizing. I point out that when the government, in this case the provincial Government of Saskatchewan, creates the framework for economic opportunity for all, it is the people who win.
Speaking of opportunity for all, I want to highlight a unique company in my riding. NorSask Forest Products is the largest 100% first nations owned and operated sawmill in Canada. As I stated recently in question period, NorSask currently has paid around $20 million in tariffs. The announcement of softwood lumber tariffs doubling will add to the damage that is being caused by these punitive actions. NorSask's profits are shared among the nine first nations of the Meadow Lake Tribal Council. These communities now have to deal with the shortfall in revenue. This means millions of dollars not being utilized for education, for health care including mental health and addictions programs, for housing, for youth and elder activities, etc.
This is not just an economic and international failure, it is another failure in reconciliation. First nations communities that have worked tirelessly to provide jobs for their people and created own-source revenues to help invest in the social issues they are facing deserve a federal government that works equally as hard at fighting for them to get back what is rightfully theirs.
In conclusion, as was so aptly described by the member for earlier tonight, from 2006 to 2015 under the leadership of Prime Minister Harper and presidents Bush and Obama, Canada and the United States had a softwood lumber agreement. Since being elected in 2015, the current government has seen three different U.S. administrations, and still we have no deal.
As the is leading a delegation to Washington today, I implore her, on behalf of the residents of Desnethé—Missinippi—Churchill River not to come home empty-handed. The people of northern Saskatchewan deserve better. Canadians deserve better.
:
Madam Chair, it is a pleasure to join the debate tonight on such an important topic. It is fitting that my first speech of the 44th Parliament is on a topic that is so dearly important to people in the Kenora riding and right across northern Ontario.
The forestry industry is so important to Canada as a whole, and to Canada's economy. This sector contributes nearly $24 billion annually to our GDP and makes up roughly 6% of total exports. The industry employs hundreds of thousands of people, many indigenous people, many in northern Canada and, as I mentioned, many in my riding as well. These families rely on the well-paying union jobs that the forestry industry provides.
However, we are here today because the industry is in crisis. In northern Ontario and across the country dozens of mills have closed in the last few years, impacting thousands of workers. Additionally, these closures are having impacts down the line on indirect jobs such as in trucking and throughout the supply chain.
Earlier in the debate I mentioned Kenora Forest Products, a mill that had to lay off over 100 workers a couple years ago when its parent company filed for bankruptcy, citing the ongoing softwood lumber dispute as a major factor of that. The lack of an agreement continues to threaten jobs in Kenora, in Ear Falls and right across all of northern Ontario.
We know the U.S. is Canada's largest trading partner, but these protectionist policies have limited our access to its markets. Now the forestry industry has suffered another blow less than a week after the flew to Washington to meet with President Biden. The U.S., of course, has announced plans to double tariffs on Canadian softwood lumber products.
When I raised this issue in question period last week, the replied, saying that the government was pursuing litigation under CUSMA, and I am glad to see we are. Canada has historically been very successful in challenging U.S. actions through channels like this, but while we wait for this ruling, the Canadian industry continues to suffer. Industry and workers in the Kenora riding continue to be left behind.
The status quo we seem to have of our largest trading partner imposing aggressive and unreasonable tariffs and Canadians working to challenge them only to win temporary victories until the cycle repeats itself really is not working. It is not working for our national economy, it is straining the relationship with our allies and, most important, it is failing the families that rely on these jobs and this industry to put food on their table and a roof over their heads.
What our forestry industry needs is stability. We need a softwood lumber agreement with the United States. We need a prime minister who will fight for our workers and ensure they are treated fairly. We need a prime minister who can work effectively with our international allies to advance Canadian interests. It is clear from the discussion we are having today that, for whatever reason, President Biden does not seem to be taking our seriously, and that is very concerning to all of us and to many people in my riding.
As I close, I would like to note that in response to questions in the House, the has been unable to tell us how many negotiations the government has had with the U.S. trade representative. She has not been able to tell us what retaliatory measures, if any, the government is planning to take or, more broadly, what its plan is to deal with this crisis. Workers in the Kenora riding and across northern Ontario need the government to succeed on this. All Canadians need the government to succeed on this. I hope government members can give Canadians some hope during this debate tonight.
:
Madam Chair, the United States remains the largest market for Canadian softwood lumber. U.S. consumers have greatly benefited from high-quality Canadian softwood lumber products for decades. It is truly unfortunate that the government of the United States continues to impose unwarranted duties that bring harm and increase prices on both sides of the border. Undoubtedly these past few years have been challenging times for the Canadian softwood lumber industry. This is why we continue to support and engage with Canadian softwood lumber stakeholders at every opportunity. When the United States imposed its unwarranted and unjustified duties on Canadian softwood lumber products, we listened and responded with a softwood lumber action plan. When the pandemic arrived, we listened and responded with a COVID-19 economic response plan.
This past summer, Canada's , the and the met with softwood lumber industry leaders to provide the latest developments on the softwood lumber file and to hear directly from them on how the government could best support them in this dispute. These meetings were very informative, and the ministers took careful note of the industry's views.
The government will continue to engage with Canadian softwood lumber stakeholders at every step of the way to ensure that all voices are heard. This includes provincial and territorial governments, softwood lumber companies, industry representatives, labour groups and indigenous communities: as such, a large and important part of Canada's economy with diverse viewpoints across the country. We believe this collaborative team Canada approach will ensure the best possible support and defence of our softwood lumber industry. Through countless direct communications with companies, we have demonstrated to Canadian softwood lumber stakeholders that this government has their best interests in mind.
The federal government knows that the Canadian industry does not want just any softwood lumber deal with the United States. Our industry needs a deal that brings predictability and stability, and that most notably protects Canadians jobs. Let me be clear. A deal that harms our industry is not a deal that this government is willing to accept. It is extremely disappointing that the United States continues to impose these unfair tariffs. Canadians rightfully expect a fair trading relationship.
Canada has always been willing to explore ideas that allow for a return to predictable cross-border trade in softwood lumber, but Canada will only strike a deal that is in the best interests of Canadian forestry workers and is good for forestry firms. We will not take just any deal, like the Conservatives would. Let me remind the House that while this government continues to stand up and defend the interests of Canadian workers, the Conservative Party of Canada would have us capitulate to the United States. In the interim, we will continue to challenge U.S. duties on softwood lumber under chapter 19 of NAFTA, under chapter 10 of CUSMA and through the WTO dispute settlement system. Canada believes that the U.S. softwood lumber duties are unwarranted, unjustified and inconsistent with U.S. law and the international trade obligations of the United States—
:
Madam Chair, Canada's forestry sector is a crucial part of the economy from coast to coast. The forestry industry contributes to the economic vitality of thousands of communities.
This week, the is in Washington to meet with U.S. congressional leaders and other stakeholders. The minister will advocate for Canadian interests and raise issues of concern around softwood lumber.
On November 18, the discussed this matter with the President of the United States of America, Joe Biden. On November 12, the also raised the softwood lumber issue during her meeting with the U.S. Secretary of State, Antony Blinken. Other Canadian government officials are also reiterating the same message at every opportunity when meeting with their American counterparts.
Canada is very disappointed that the United States decided to raise duties on most Canadian softwood lumber producers. These unfair duties harm Canadian communities, businesses and workers.
Canada is calling on the United States to cease imposing these harmful duties on Canadian softwood lumber products. At this point in time, the United States has shown no interest in a serious conversation to find a mutually acceptable solution to this dispute.
The Government of Canada will continue to vigorously defend our softwood lumber industry and the workers and communities it supports, including through litigation under NAFTA's chapter 19 as well as CUSMA's chapter 10, and at the WTO.
In the past, those mechanisms have consistently ruled that Canada is a fair trading partner, and we expect similar results in the current challenges. From the moment these unfair duties were imposed in 2017, Canada has responded forcefully. We have launched challenges under chapter 19 of NAFTA and asked WTO panels to review these decisions. We have already obtained positive rulings from the WTO panels, which have confirmed that the U.S. duties are not consistent with the United States' WTO obligations.
These wins will be useful for Canada in our arguments before the NAFTA chapter 19 panels, which are also assessing the validity of the decisions made by the U.S. in 2017.
Canada is also challenging the final results of the United States' first administrative reviews, issued in 2020. Those decisions will be reviewed by panels established under CUSMA's chapter 10.
With respect to the most recent decision by the United States to almost double the duties on the majority of the industry, we are currently in talks with the Canadian stakeholders to look at available options, such as additional challenges under CUSMA's chapter 10, and to determine the best way forward together.
At the same time, we will continue to press our U.S. counterparts to rescind this unfair and unwarranted trade action. We remain confident that a negotiated settlement is not only possible but in the best interests of both countries. Workers in the forestry sector can rest assured that we will always be there to defend their interests, their families and their communities.
:
Madam Chair, I will take this opportunity to thank my constituents for voting for me to represent Portneuf—Jacques-Cartier in the House of Commons for a third time.
I want to thank the many volunteers who worked hard to get out the vote and ensure that people voted for me. It was an extraordinary success, and I received 51.6% of the vote, which was more than I had hoped or aimed for. I am very pleased with that, and I appreciate it very much.
I want to thank some volunteers in particular: my association president, Serge Henry, and his wife, Hélène Naud; the secretary-treasurer, Alain Pouliot; and the vice-president, Mario Paquet. Finally, as we all do in this place, I obviously want to thank my family: my wife, Isabelle, and my children, Charles-Antoine and Ann-Frédérique.
I am taking this opportunity to thank everyone as this is my first time rising after giving my speech as a candidate for Speaker, which, like you, Madam Chair, I did not win. These are some of the disappointments we must contend with in politics.
Before I get into the debate on softwood lumber, I want to share with the House that I was just at the Westin Hotel, which is hosting the big tourism awards. Once again, Portneuf—Jacques-Cartier was a standout, with its ice hotel winning the top Canadian tourism award. I would therefore like to take this opportunity to congratulate those people. I invite everyone in Canada to come to Portneuf—Jacques-Cartier to discover this extraordinary, unique, ephemeral attraction that is built anew every year.
Now to the substance of the debate. If we look at the lineup—
:
Madam Chair, thank you for reminding me. It is very important. I wish to inform the House that I will be sharing my time with my colleague from , an extraordinary member from British Columbia.
To continue, the topic we are debating tonight is an important sector of the Canadian economy. It is important in British Columbia, Quebec and other provinces in Canada.
Quebec is not yet a country. That is not what the Conservative Party is working towards, but we will protect Quebec.
I mentioned the ice hotel, which is just outside Quebec City. I am participating in tonight's debate because part of the riding I represent is more rural and is home to sawmills and lumber mills. In contrast, if we look at the list of all the Liberals who have spoken tonight, we see that they represent office towers and parking lots rather than rural areas that have sawmills and lumber mills.
I think we need to take this seriously. The government that has been in power for the last six years is trivializing the economy, as if it were not important, and is pushing the problem down the road. It is not offering any solutions. It is sad.
We are at the beginning of an economic recovery. I think it is important, at the beginning of an economic recovery, to get ahead of the game. We need to have the tools to attack. We need to have the workforce. If we look at the news, we see that the labour shortage is all around us.
Since I have little time remaining, I will simply say that we could complain about what the Liberals are doing. However, instead of complaining, I will propose a solution. I think it is important to work on resolving this problem. I think if we roll up our sleeves here in Canada and tell the Americans that we are no longer sending them our softwood lumber, that they are cut off for the next six months, then it is the U.S. citizens who will be asking their state governors to do what it takes to speed up the process.
Our is unable to exert any pressure. He does not have any leverage to force the U.S. government to do anything. The U.S. market is huge. I think we have to support this industry by cutting off exports to the U.S. and subsidizing the industry to ensure that the businesses can absorb the revenue losses. In six months, everything will go back to normal. I think we have to work on that. That could be a solution. I think we need to find solutions so that we can reopen our economy and be part of the recovery.
:
Madam Chair, I would like to thank the member for for sharing his time with me tonight.
Actions speak louder than words, and that is a theme I am going to get to. The lack of a softwood lumber agreement has affected my riding greatly. We are in northern B.C., where lumber and forestry are what we do. I want to take us to the time of Obama and the , back in 2015, when there was a 100-day promise. Let me read from an article from The Globe and Mail in March 2015:
Two-thirds of the way through the 100-day countdown set in March by [the Prime Minister] and President Barack Obama to agree on the parameters of a new bilateral softwood lumber deal, time is fast running out to reach an agreement before U.S. election fever overwhelms the negotiations.
The Canadian lumber industry is still hoping that talks at the bureaucratic level will have advanced far enough that Mr. Obama and [the Prime Minister] can iron out what differences remain when they meet at the North American Leaders' Summit in late June.... The last [softwood lumber agreement] ended in October 2015 [I might note] with the expiry of a 2006 deal that instituted managed trade between the two countries that are supposedly the world's biggest champions of free trade...
Here we are, with a bunch of promises from many members across the way that this is going to get done. They are saying, “Just relax, we need more time.” That promise was made six years ago, and we still have not seen that delivered. That is why this discussion is happening tonight, and I am glad for the opportunity we have.
It even escalated. We saw the President of the United States, and I was about 20 feet away from him when he came to Ottawa to speak, and there were actually expectations. The Conservatives had lost the election, and we were thinking this was maybe a silver-lining moment for us: At least we were going to get a good trade deal across the line. President Obama gave a great speech in Centre Block, right in front of the Speaker, and we expected the deal to get signed that afternoon. There was nothing. All we saw was Air Force One leaving Ottawa with no new softwood lumber agreement.
Fast-forward to 2021, and where has the softwood lumber agreement gone? I was a member of the natural resources committee and the was there. She had just met with the new Biden administration. They had met in a bilateral meeting. My obvious question to her was whether she had discussed softwood lumber in their meeting. She was very vague. When somebody is very vague about these things that are very specific and very important billion-dollar deals, I start to get a little suspicious.
It became obvious in an article in Politico. This is from Katherine Tai, the U.S. trade representative. This is after she promised that she had been discussing this with the trade negotiator and that they were actually working on a softwood lumber agreement. This is what the trade representative from the U.S. said:
In order to have an agreement and in order to have a negotiation, you need to have a partner. And thus far, the Canadians have not expressed interest in engaging.
It is pretty serious when the U.S. trade rep is saying they want to do this, but so far the has not even reached out. Therefore, those promises ring hollow and again it goes to my theme: Actions speak louder than words. What are the Liberals really doing? They cannot try to infer that they want a softwood lumber agreement. They have to be very firm about these things.
I might add that a previous Conservative government got the first one done in 2006. We renewed it in 2013, and it expired in October 2015. Some are saying over there that they cannot get it done. We got it done twice, so we can get it done and it is proof that, if the intention is really there, the current government could get it done too.
I will finish with this. This is a statement from the from her own Global Affairs website, on October 6, 2021, in Ottawa, Ontario. It states:
Today, the Honourable...Minister of Small Business, Export Promotion and International Trade, met with Katherine Tai, United States Trade Representative, on the margins of the OECD Ministerial Council Meeting in Paris, France....
[The Minister of International Trade] reiterated her concerns about Buy America provisions, U.S. tariffs on Canadian softwood lumber and solar products,....
That was October 6, 2021, when negotiations were supposed to be happening all along. Actions speak louder than words. We want some action on softwood lumber from the government.
:
Madam Chair, I will be sharing my time with the very hon. member for .
It is an honour to rise here tonight. It is a challenge, with five minutes, to try to dig into this issue, which combines two of my practically lifelong interests and passions: protecting Canada's forests and dealing with trade agreements that tend to be unfair.
On this issue, we can all agree in this House, and I do hope we can adopt a team Canada approach, that the recent imposition by the U.S. of countervailing duties and anti-dumping rules that double the tariffs for Canadian softwood lumber are completely unfair and unjustified.
Where do we go from there? I would like to suggest a novel approach, but first I want to say what we should be doing as Canadians to help the forest sector. As many members here have said, workers are losing out, communities are losing out and businesses are losing out. We should be able to do something about it domestically without the risk of creating more arguments that Canada is subsidizing its forest products.
What could we do? We could try to ban, and I think we can ban, the export of raw logs so we can get logs to our mills for value added and keep people employed for use of the products not just in Canada or the United States but for export.
If we look at the way the Swedish forest industry created itself, it created itself for maximum value added and high value export of smaller amounts of timber, whereas Canada organized it for massive amounts of volume for low value export and very little value added. We could flip that around and try to create more jobs and protect the workforce.
We should look at doing more with mass timber wood construction of buildings. The bill that was put forward by the hon. member for is now before the Senate. We supported it in this place and should continue to support it and get it done.
We also need to be doing whatever we can to find ways to let forest communities know, after the devastation in our province from pine beetle, which caused a lot of loss of jobs at mills, that we will fight for them.
This is where it gets more complicated, and I want to dive into it. The trade agreements are intractable. I remember when Art Eggleton, back in 1995, bought five years of peace in a softwood lumber agreement that lasted until 2000. I do not know how many will remember that. We had these stops and starts.
I agree with trade lawyer Larry Herman on this. We need a long-term commitment and a deal that lasts long term, which will take political will from both Washington and Ottawa.
However, the bigger picture here, which is new, is that the multilateral trading system is broken. We know it was Donald Trump who broke it, and for some reason, U.S. President Joe Biden has continued to keep it broken. When Canada wins, as we did in the summer of 2020 at the World Trade Organization when it was determined that our approach to forests was not unfair under the trade rules, the U.S. does not like it. It did not like the ruling, everyone complained about it and it appealed it. Guess what? It also said that this was further evidence that the WTO itself is not fair. It said that it kept losing, therefore it was not going to put judges on the WTO appellate bodies. There is a void, a broken system.
How do we unstick a broken system? We used to be challenged by the U.S. because it said it was our stumpage rates that created a subsidy. This time around it is saying that a renewable energy program to encourage the forest industry in New Brunswick to produce renewable energy is a subsidy.
Now, that gets interesting. We have the trade regimes all around the world interfering with climate action. We have rulings against India for doing solar energy. We have to make sure the trade regime stays out of measures to protect our climate. Maybe, just maybe, the hon. and the hon. change might get the U.S. administration's attention by suggesting a new approach to really try to unstick the World Trade Organization and make it something that does not fight climate action but ensures that trade rules do not block climate action.
We are way overdue for a rethink of our global trading regime. Forgive the word “logjam” in this context, but there is a logjam at WTO created by the U.S. administration that broke the system under Donald Trump and wants it to stay broken under President Biden. It may just be possible, and I do not know how likely it is, to maybe get the Biden administration's attention, through John Kerry and others, to rethink the way these rules are being used, to put judges on the appellate body and to have a long-term vision that includes the climate sequestration benefits of forests.
:
Madam Chair, I am happy to speak tonight on softwood lumber.
As people have been saying throughout the evening, this comes back and back again. If we look up the softwood lumber dispute on Wikipedia, it goes on and on, with “Lumber II”, “Lumber III” and “Lumber IV”. It is like world wars or Super Bowls. I think even Wikipedia has given up on where we are now, because it stops at “IV” and I think we are at “V” or “VI” by now.
It is an intractable problem, and I agree with the member for that it is driven by protectionism, not logic or fairness. The Americans know that we depend on them for our lumber market, and they know if they put enough barriers in place, put down these unfair tariffs, clog up the courts for years and years and stop putting people on the WTO appellate bodies so that system does not work, mills will go out of business before we can get a fair ruling.
I think what we have to do is find a new strategy that will gradually move us away from the United States. The United States depends on us, and I think at some point they will realize they are hurting. I have been to Washington and have talked to senators and congressmen about this, and some of them get it.
Our forests are changing. We have had devastating fires in British Columbia. We have had beetle pandemics. The weather is changing too. I just talked to my wife, and in my hometown of Penticton it was 22.5°C today. That is a new Canadian record for December. That is perfect pine beetle weather; they love that kind of winter weather. Who knows where we are going to end up next year with our forests?
I am not the first to say this and I will not be the last, but we have to find ways of driving more economic value out of every tree we cut down. We all know that we have cut down a lot of trees and we are running out of our old-growth forests. We have heard that time and again.
Whenever we cut down a tree, we have to get the maximum value out of it, and I think one thing we can do, as the member just mentioned, is use mass timber. Canada leads this technology in North America. We have Structurlam in my hometown of Penticton, Chantiers Chibougamau in Quebec and Kalesnikoff Lumber in Castlegar, on the other side of my riding. These are three world-leading plants that make mass timber.
We can have sawmills around Canada producing two-by-fours and two-by-sixes and selling them to mass timber plants to create building materials to build more of our buildings out of wood and build larger buildings out of wood. This is how the big buildings of the future will be built. As already mentioned, I have a private member's bill about using that sort of wood or any material that will help us in our climate action and bring down the greenhouse gas emissions in our buildings. That bill is in the Senate now, and I hope it will come back to us in the spring and receive a good welcome here.
We also have to do something that will increase our markets domestically. We tried to increase our markets in Asia, particularly in China, and that worked for a while. However, to put it mildly, I think that has hit a bit of a headwind. I do not know if we can go much further in China at the moment, but we have the opportunity to build a much larger domestic market that would take the pressure off our sawmills.
We could sell mass timber in the United States without tariffs. It does not qualify for the softwood lumber tariffs we are talking about. That is one solution we should be looking at. We would have to educate our architects, change our building codes and educate our builders, but we should really look to that solution to get more value out of our forests. We should also monetize our forests for means other than fibre: for the water they protect, for the flood protection they provide and for the carbon they sequester.
I will leave it there.
:
Madam Chair, I will be frank. In the House, I often hear the phrase “team Canada” and the idea that we should be working as team Canada. I am not particularly interested in team Canada, and I will tell you why.
Canada has two main economic sectors: the oil industry and the automotive industry. The federal government is totally absent when it comes to softwood lumber.
Today we have heard about negotiating international treaties and about our relationship with the United States. That is one of the problems, but there has never been any serious negotiating, and I have some simple proof of that.
Quebec once again had some issues with the federal government during CUSMA negotiations because the aluminum industry was not protected. Canada's chief negotiator appeared before the Standing Committee on Natural Resources and I asked him a question about the forestry industry. He replied that the forestry industry was not a priority for him at that time.
In 2006, I heard a bunch of people bragging about a deal that had been signed. However, if we talk to people in the industry about that, they are furious because, in 2006, they lost $1 billion. It was a sellout deal. That is one of the problems in the forestry sector. We are too dependent on the United States and, unfortunately, we do not have a government that is prepared to do economic battle with the United States, which means that the sector is left out. That has been proven tonight, over and over again.
The other big issue is the secondary and tertiary processing sector. There are some federal programs to support it. We have the notorious IFIT, for example, a program that aims to transform the forestry industry. As we all know, we no longer consume as much paper, and the pulp and paper industry needs to pivot somehow. Year after year, there are more applications to IFIT than the program can provide in capital. People in the sector have come to me and said that they no longer even bother applying to IFIT because they know they will be turned down.
The funding power that the federal government is putting into supporting the transformation of the sector is pitiful. Anyone in the sector can tell us that.
There is another program that supports softwood lumber exports. Quebec is the largest player in Canada's forestry sector, yet 80% of the budget is earmarked for British Columbia. Members will understand why talk of Team Canada leaves a bad taste in my mouth.
Here is another basic fact. As we know, many sawmills in Quebec are coming to the end of their useful life. Given today's labour shortage, sawmills that are not automated are unable to survive. If these people applied for help from Canada Economic Development, they would get nothing. Why?
It is because Canada Economic Development refers them to Global Affairs Canada, which would tell them that it unfortunately cannot support them because that would go against international trade treaties.
Once again, this activity sector is receiving absolutely nothing from the federal government. To add insult to injury, the forestry sector is probably the most promising sector when it comes to tackling climate change.
The investment in the forestry industry in Quebec is just $71 million a year. However, 75% of that is provided in the form of loans, which means that around $17 million is actually invested in the forestry industry.
My region of Saguenay—Lac‑Saint‑Jean brings in $81 million a year for the federal government. What is even more insulting is that year after year, the oil and gas industry is given around $14 billion. That is something to be pissed off about, as my father would say.