Bill C-24 (Historical)

Softwood Lumber Products Export Charge Act, 2006

An Act to impose a charge on the export of certain softwood lumber products to the United States and a charge on refunds of certain duty deposits paid to the United States, to authorize certain payments, to amend the Export and Import Permits Act and to amend other Acts as a consequence

The purpose of this enactment is to implement some of Canada’s obligations under the Softwood Lumber Agreement between the Government of Canada and the Government of the United States, by imposing a charge on exports of certain softwood lumber products to the United States and on refunds of certain duty deposits paid to the United States and by amending certain Acts, including the Export and Import Permits Act. The charge on exports will take effect on October 12, 2006 and will be payable by exporters of softwood lumber products. The enactment also authorizes certain payments to be made.

Softwood Lumber Products Export Charge Act, 2006

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, I cannot muster any enthusiasm to talk about Bill C-24.

We have heard all sorts of amazing things from hon. members of all stripes in this House. The member for Outremont gave a fine performance. This is probably the first time he has risen with such outrage to defend workers in this House. This is the first time. He used to be a minister and did not rise to defend workers. No, that was not what the member for Outremont did. He was a minister, he made decisions.

That is the reality. The softwood lumber crisis has existed since May 22, 2002, when the Liberals were in power. The member for Outremont was elected in June 2004. What did the minister do? What did the member for Outremont do when he was minister? Absolutely nothing. He said earlier that they were in court and were winning battles. All the while, plants were closing.

Let us not ask ourselves questions.The Conservative Party did not close all the plants; the Liberal Party's decisions closed them. That is what happened. That is the reality.

Clearly, all that time, the Bloc Québécois defended the interests of workers in Quebec in this House. We suggested good ideas and solutions. We were the ones who proposed providing loan guarantees in this House. The Liberal government did not listen to us, and the Conservative government is not listening to us either.

We did not get guarantees. No, there is the program. The member for Outremont refers to the program. All that time, the Liberals were in power and did not implement their program. Did they think that people thought the Liberals were going to implement it to get elected? People did not trust the Liberals. That is the reality. And they were right.

Today, in this House, we are here to defend the interests of workers, who have asked the Bloc Québécois to vote for the agreement because the court case was dragging on too long. The reality is that the companies need money.

We have voted, we are voting and we will vote to defend the agreement, for the simple reason that the forest industry is in crisis and it needs the money, because the Liberal Party did not come to its assistance when it was time to do so. It did not create loan guarantees. The Conservative Party is repeating the same mistake of not helping the companies. It decided to sign a cut-rate agreement. Everyone says so, including the industry. This is not really the ideal agreement. The problem is that the companies have had it and, before they all close down, obviously we are going to keep the existing plants alive and we will hope to work together to try and reopen the ones that have closed.

That is the reality. This is why Quebeckers can rely on the Bloc Québécois to defend their interests. They cannot rely on the Liberals, who spend their time in court trying to defend and win and do what they have always done, that is, not give anything to the industry, telling it to keep on hoping it will win the final battle, the last case.

Cases have been won every year. We win one but it does not put anything more in the workers’ pockets. That is the harsh reality for the workers.

The 147 companies out of 151 who called the Bloc Québécois to ask it to vote in favour of this agreement, which is not a good one, did not do so lightheartedly. We say so quite openly. We have offered some solutions to improve it. The only problem is that the words “The End” are written on the wall and the Conservative Party has decided not to help the industry. So everyone says that the best thing that can happen is for the money paid by the companies to be refunded, even partially. This is the industry’s request, once again.

The only party in Quebec that listens to the workers, to Quebeckers, is the Bloc Québécois. We and the people are in symbiosis. The same cannot be said of the Liberal Party. Thus, we decided to support this agreement, for the sake of the people.

This is why we are here. We will go on battling in the interest of the people. Why? Because we will never be in power.

The hon. member for Outremont’s problem might be that he covets power at all cost. That is his problem and the problem of his friend, the hon. member for LaSalle—Émard. Power at all cost, and look what happened: in coveting power at all cost, they lost it, because power is loaned to us, it is not ours to keep. We will always be here, of course to defend the interests of Quebeckers.

We would like to say to the Conservative government that if it has any heart at all—which is a good question with the Conservatives—some excellent topics could be added at the industry’s request. We absolutely must resolve the issue of the older worker adjustment program. People between 50 and 55 years of age or more are losing their jobs in the forest industry and deserve our help until they can retire. That is what the Bloc Québécois wants. It is true that there was a tiny opening in the last budget, but we are obviously still waiting. Older workers are still waiting, especially in the forest and textile industries.

This week, the $2 billion cuts to all the programs—programs for women, aboriginals and the most disadvantaged in our society—showed once again that the Conservative members have no heart.

We want them to listen to what the industry is asking. We want an assistance program for older workers so that people who worked in the forest industry can live decently till they retire. That is what we want. We have already costed this program, and it would not be phenomenal amounts that would shatter the government’s expenditures. This has already been raised by the Bloc Québécois. This request is justified for the simple reason that the industry has officially requested it. The Bloc Québécois has always been a strong advocate of this request in the House.

We also want an economic diversification program for communities that are dependent on the forest. We are still waiting for the famous Marshall plan promised by the minister of the Economic Development Agency of Canada for the Regions of Quebec, the hon. member for Jonquière—Alma, if my memory serves. He promised a genuine Marshall plan that would help launch resource-based regions, but all he produced this week was a mouse.

The Minister of the Economic Development Agency of Canada for the Regions of Quebec made a disappointing announcement of $85 million in recycled money. They took some money from certain programs and they recycled it to try to help the most economically disadvantaged communities. They gave $85 million while the industry leaves more than a billion dollars in countervailing duties in the United States. The Conservative government offers an $85 million program spread over four years. We hope it won’t be too little, too late. My colleague from Gaspésie—Îles-de-la-Madeleine is quite right to mention this fact. Some $85 million over four years. That is sad. It is really sad that our communities are not better supported by a Conservative government that is completely insensitive to the problems facing the most disadvantaged communities in our regions.

The problem of regional development is a problem that affects everybody. It is not true that the large urban centres could survive with only head offices, which are often the head offices of companies that are developing resources in our regions. That is the reality. Governments are often out of touch. They think that the population is in the cities and that it is not worth the trouble to invest in our regions. On the contrary, if a great many people live in our cities, it is because we have prosperous regions that support the development of our natural resources, agricultural development and development of our forests. What would we do if we did not have lumber to build our houses? We take pride in building homes, but the lumber comes for our regions. We are glad to eat well; to have good bread and other good things on our tables, but that all comes from our regions. The Conservative Party should not forget that.

We want a real economic diversification program for communities that are forestry dependent. We are still waiting for the great program that the Minister of the Economic Development Agency of Canada for the Regions of Quebec, the member for Jonquière—Alma, failed to deliver this week.

We also want a special status for the 128,000 owners of private woodlots in Quebec. To maintain the industry, we must have trees. We want a support program to revitalize the industry. If we support private woodlots, we will be supporting the resources that are the basis for the industry. This is an idea put forth by the Bloc Québécois. We expect the Conservative Party to take it seriously.

We want a special tax measure for the $4.3 billion in countervailing and anti-dumping duties. We must not forget that the companies will receive less money than they paid. They will receive $4 billion of the $5 billion; that is 81% of the total. Moreover, because of the increased value of the Canada dollar since 2002, they are incurring a loss. In fact, they will only receive 65% of the 81% that they paid. We are asking for a refundable tax credit so that they can recover those amounts. That is the way Canada can deal with this matter.

Once again, Quebeckers can be proud that the Bloc Québécois is defending their interests. It is only with reluctance that we support Bill C-24 and the softwood lumber agreement. We do so in the interest of our fellow citizens, of workers in the forest industry who have asked us to support the bill.

Because, obviously, we are the only party that is really listening to them.

[Alex Atamanenko, NDP, British Columbia Southern Interior, BC]

Mr. Speaker, I would like to thank my hon. colleague for his speech, which was nearly as fascinating and energetic as the one before it. The only difference between my party and his is that we will eventually come to power, and I hope we can count on his party's support when the time comes.

My question for my hon. colleague is this: Does he think that this bad deal will have a negative impact on other sectors of Canadian industry, such as the agricultural and manufacturing sectors? Will this bad deal lead to other bad deals?

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, first I would like to say that I am pleased my NDP colleague is asking for our support. It shows that he is aware of the Bloc Québécois' importance in this House. Naturally, we will be delighted to support his party anytime they make good decisions once they are in power.

Can this deal have an impact on other industrial sectors? I should note that the softwood lumber sector does not fall under the free trade agreement. This sector is excluded, which is why the Bloc Québécois has always demanded specific aid programs for this industry. This sector experiences repercussions and, from time to time, is subject to American duties.

Losing jobs in a region inevitably has an impact on the local economy. For single-industry communities, this is obviously very important. Once the dispute has been resolved, the industry will get a breath of fresh air.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, the member may recall that when the softwood deal came up it was a rush. Again, it was one of these issues where the government had to have an answer quickly. The Prime Minister was not even here for question period. The Conservatives were just doing it and then they tabled it, gave it to the other leaders and said that we were in the House and we had to make a decision.

That deal which was presented to and addressed by the House at that time is not the deal that is represented in Bill C-24. In fact, some of the provisions are there, but the deal has changed substantively. It seems to me that this is not a long term solution to this problem.

In fact, the bill itself only provides a horizon of less than 24 months, and we are going to be right back at it because we have abandoned the dispute resolution mechanism. The government has put the onus on those who want to pursue their legal rights. It has put them under pressure, saying that the government has abandoned them. The Minister of International Trade has said that the industry is going it alone if it does not accept this deal.

Perhaps the member would care to at least comment. I understand that he wants to protect the industry in Quebec, but we really need a long term solution. This bill represents only a short term solution. Is the member going to continue to fight for the rights of the softwood industry after this deal--maybe--goes through?

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, the problem of my Liberal colleague and his party is simple. Once again, they are not in touch with what the public is asking. We are much more pragmatic than that. Of course we are capable of analyzing documents, making legal analyses and other things. The industry is saying they have had it with discussions on legal documents. The only problem is that the Liberal Party does not understand that and it is still wrapped up in discussions on legal documents.

The industry and workers are now saying that time is up. They want their countervailing duties back and even if it is a bad agreement, they want it now. That is why a majority of Quebeckers put their trust in the Bloc Québécois to defend their interests. We have a symbiotic relationship with the people of Quebec. Employers and employees are asking us to sign the agreement and that is what we are doing. We are not overjoyed to do so, just as they are not overjoyed to accept it.

The only problem is that the Liberal Party still has not understood that the legal discussions are over and that it is now time to move on, help the companies, the employees, the men and women who work and who have dedicated their lives to this industry. The Bloc Québécois made this decision to help its people and to stop fighting. As they say, the worst agreement is always better than the best trial. That is what the Bloc Québécois chose together with the industry, employers and employees.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

First of all, I wish to pay tribute to my colleague who just spoke. I think that he is putting us back on the right track as opposed to what we heard previously from the member for Outremont.

Second, I would like to ask a very simple question. Who did the NDP, the Conservatives or the Liberals consult in Quebec? I am under the impression, from what the NDP, the Liberals and the Conservatives are saying, that they did not consult anyone in Quebec. Or, if they did, they were not listening.

I would like my colleague to comment on this.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, I thank my colleague for Gaspésie—Îles-de-la-Madeleine for his question. He is quite right. If the NDP and the Liberals vote against this agreement, despite the appeals from the industry, workers and Quebec citizens, it is because they have not understood and they have not consulted

The Conservative party managed to negotiate a sellout agreement. They did not adopt the plan put forward by the Bloc Québécois. This plan, supported by the industry, called for loan guarantees and tax credits to cover potential losses. The Conservative Party negotiated this agreement, I reiterate, without consulting the industry.

Thus, the Bloc Québécois is the only party that is attuned to and wholeheartedly supports the interests of Quebeckers working in the forestry industry. These people can count on us.

[Judy Sgro, Liberal, York West, ON]

Mr. Speaker, I am glad to join this debate. I would like to share with members of this House the concerns of the United Steelworkers so that they will realize that these are not just casual concerns and how serious this issue is.

The United Steelworkers represent over 280,000 Canadian members, 50,000 of whom work in the forest sector. They know the issue well and they are very serious about their concerns. They truly believe that the deal we are considering is a poor one and that Canadians already had a successful strategy to deal with the U.S. forest industry and administration's unfair and illegal imposition of lumber tariffs and duties in May 2002.

Since then we have shown the Americans that many Canadian sawmills could outcompete them, even with exorbitant duties on our lumber exports. Any recent economic problems firms face have more to do with the rising Canadian dollar than with U.S. protectionist measures. By winning in court, meanwhile, we showed them that the Americans' legal case was groundless and their protectionist measures were illegal.

Canada was winning after all, whether in North American Free Trade Agreement tribunals, the World Trade Organization, or U.S. courts of law. On July 13 the Court of International Trade ruled that the tariffs and duties were illegal, a judgment that simply serves to confirm our views. The U.S. is rapidly exhausting its legal avenues before NAFTA, as witnessed by NAFTA's rejection of American extraordinary challenges appeals. The U.S. is even losing at the WTO, the only body which had previously upheld some of its contentions.

We find it unfortunate, therefore, that the current government is prepared to throw away the advantages we have earned at law and instead decided to saddle the industry with what is clearly a terrible negotiated agreement.

In agreeing to the terms of the current agreement, it appears that the current government has fallen into the trap that Carl Grenier of the Free Trade Lumber Council describes when he observes that Canada has admitted that we are “guilty as charged” of producing subsidized lumber, dumping it on U.S. markets and unfairly harming the U.S. industry. We are therefore prepared to throw ourselves on the Americans' mercy, as Grenier notes.

But Canada is not guilty as charged on any of these counts. We all know that. Successive court rulings continue to prove it.

Nonetheless, for policy reasons known perhaps best to the government but not to Canadians, the government has rushed into this devastating agreement. It did so without proper consultation with affected governments and stakeholders. In spite of commitments to the contrary, the deal was even initialed in Geneva before industry representatives had a chance to comment.

It is, in short, a hastily concluded deal. The steelworkers truly believe that we all, as Canadians, will come to regret it. After all, it is clear that the agreement is severely flawed. Those are the issues that are being pointed out to the government today.

The terms do not provide free access to the U.S. market, in spite of the Prime Minister's claim in the House of Commons on April 28. Canadian exports are capped at 34% of the U.S. lumber market and further trampled by the so-called surge mechanism, a policy which effectively penalizes Canadian producers for efficiency. Meanwhile the U.S. companies continue to have free access to the Canadian raw logs, while third country producers enjoy truly free access to the U.S. market.

The timeline, which has changed dramatically over the course of negotiations since April 27, potentially gives Canada as little as two years of peace, not the seven to nine we were originally offered. We learned that the U.S. would now enjoy preferential rights to abrogate the agreement, yet the $1 billion price tag remains the same.

The timing is poor, since most industry analysts agree that the U.S. housing market, hot until recently, is now cooling off. That means that from the onset of the agreement, Canadian producers will likely be paying 10% to 15% in export tax, a rate higher than even the current level of U.S. tariffs and duties.

What is in the deal for Canada? As was noted in a submission at the standing committee back on June 19, the steelworkers believe that the only reason to sign off on this agreement is the prospect of getting back a portion of the illegally held money currently held by the U.S. commerce department. They respectfully submit that this is just not a good enough reason to lock Canada into what is really a short term fix that not long from now will permit a renewal of U.S. protectionist measures. Developments since June have merely confirmed this judgment.

After all, although the deal calls for the return of 80% of the illegally taken remissions of Canadian companies, there are still no provisions in the agreement for much needed investment in the Canadian forest sector, even though we have seen a number of recent closures attributed to the lack of sufficient capital formation in Canada.

While many of the plants and their equipment in Canada remain starved for capital, our forest companies have continued to invest profits made in Canada in United States and overseas acquisitions, mergers or outside the sector. Notably, Canadian companies like Canfor, Abitibi, Ainsworth and Interfor have purchased mills in the United States. Steelworkers continue to have major concerns until we move forward.

To this end, there must be commitments that a generous portion of any remissions firms receive from a settlement of the lumber dispute will be reinvested in job creation, worker training and retraining and infrastructure and community adjustment in Canada, not outside Canada.

It is a bitter pill for workers and communities to swallow, for instance, when they learn that while the deal calls for $500 million in spending on such works in the United States, it calls for not one penny to be invested in Canada. How, they ask, can Canadian firms continue to invest in sawmills in South Carolina, Washington and Oregon, the OSB mills in Minnesota or plants in Maine while plants in this country continue to be closed due to lack of investment and capital? The Globe and Mail recently commented:

Underinvestment in the Eastern Canadian forest products industry has been chronic for so long that it would take billions to make the country's pulp and paper mills as modern as those in Scandinavia or South America.

The deal, however, with its abruptly short actual term of peace from U.S. trade actions, even provides the U.S. industry and the Coalition for Fair Lumber Imports with a reward for sponsoring what have now been definitely shown to be illegal trade actions: a $500 million nest egg with which to finance future harassment, as early as two years from the time this deal goes into effect.

In short, by now it is clear that this agreement does not well serve Canadian interests, whether the interests are of our forest industry, forest sector workers, forest based communities, or Canadian citizens. It provides insufficient value to Canada while offering dangerous incentives to future U.S. trade actions. It does not represent a satisfactory resolution to the lumber trade dispute.

Steelworkers recommend the following course of action. Canada must renounce this agreement. The government and Canadian companies should continue with their legal actions. They urge Canadian companies to not agree to withdraw their legal challenges nor to agree to the payment of funds to the U.S. industry. The government should continue to support the legal actions required to erase fully all possible U.S. legal actions.

In short, the United Steelworkers of Canada urge Canadian companies and governments to set aside selfish interests and clearly stand up for Canada and Canadian interests. We must keep in mind the reality that Canada's forest sector is our leading industry and that it is a major source of jobs.

I have appreciated the opportunity to share the feelings of the United Steelworkers of Canada and to ask the government to rethink this whole deal.

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, the softwood lumber agreement has dragged on for years, for way too long.

[An hon. member]

Twenty-four years to be precise.

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Twenty-four years. It is unbelievable, and the previous government could not seem to deal with it.

The lumber producing provinces across this country, including British Columbia, where the hon. member who is yapping back here is from, the industry, all the small loggers and the large loggers support this. Lumber producers from Quebec and from the east coast benefit big time, as do all the lumber producers in Ontario, or the bulk of them, and the ones from my riding.

I ask the hon. member, how many logging companies are in her riding and how many of those are in support of this agreement?

[Judy Sgro, Liberal, York West, ON]

Mr. Speaker, my understanding as a member of Parliament is that we are here to represent all of the country and not simply to look at parochial interests in our own riding.

This is an industry that is important and needs our support. We could have had a deal a long time ago. We wanted a good deal. This one is not a good deal. It is not a good deal for Canadians.

The House resumed from September 27 consideration of the motion that Bill C-24, An Act to impose a charge on the export of certain softwood lumber products to the United States and a charge on refunds of certain duty deposits paid to the United States, to authorize certain payments, to amend the Export and Import Permits Act and to amend other Acts as a consequence, be read the second time and referred to a committee, of the amendment and of the amendment to the amendment.

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

Mr. Speaker, I rise today on Bill C-24, the bill put forward by the Minister of International Trade, the softwood lumber products export charge act, 2006

As I was considering the fact that I would be speaking today, a thought crossed my mind that this softwood sellout kind of matches a definition I have used for years relative to some folks who have passed through the House, ministers, members, even governments, that we ordinary folk call rogues and scoundrels.

Mostly, the common people on the street will say it is their view that far too many people who have sat in the House or held official positions in the House have been quick to bow to an American policy on one file or another. One of the first that comes to mind, maybe even the most notorious up until this point in time especially in the minds of working Canadians, was the act of former Prime Minister John Diefenbaker when he caved into Dwight D. Eisenhower in the late 1950s. It was that prime minister, a Conservative prime minister by the way, who bowed to President Dwight D. Eisenhower and cancelled the Avro Arrow project.

In fact, we were reminded just this week that there is a prototype of the Avro Arrow that has been restored and taken to one of our national museums to be put on display I guess to say what might have been. At the time of the cancellation of that project there were five leading prototypes of an aircraft that was 20 years ahead of its time.

What happened on Black Friday? Prime Minister Diefenbaker cancelled this project and cancelled the futures of over 15,000 workers when he did that. One has to sit back and wonder why. Why would a government turn on its own people in that fashion?

Then again in the 1980s many of us, including myself in the Hamilton labour movement, saw then Prime Minister Brian Mulroney sign the free trade agreement which basically sacrificed over 500,000 manufacturing jobs in Ontario, not to mention across this country. My riding of Hamilton East—Stoney Creek was affected in major ways.

I can recall when the draft text of the free trade agreement was signed. That very day Firestone Tire announced the closure of the plant in Hamilton because it no longer needed a plant. It could simply bring goods across the border. Thus, 1,500 people lost their jobs.

Not to pick on just the Conservatives, but maybe to throw a little fire across the way to the former Liberals, it was in the 1990s, as we will recall, that the Liberal Party ran on a platform in the 1993 election saying that it would not support the GST and would cancel it. It would not sign NAFTA. I recall a full page newspaper ad that had five priorities of things it would and would not do and those were the top two on that list. Lo and behold, what did it do? It kept the GST and signed the free trade agreement and again workers in my city were sold down the river.

We will recall not too long after that event the member from Hamilton at the time resigned on the basis that she had given her word that if the GST was kept, she would resign. A byelection took place. In fact, I was the candidate for my party in that byelection. We went from fifth place to second place just simply on the anger that the people had at the time for what was going on.

Steelworkers and manufacturers in my area wonder what is next. They see this softwood sellout. It is little wonder they do not trust the government after the previous Liberal and Conservative governments have sold them down the river. Now there is a spectacle by the present government. In the campaign it ran on being a fresh face, accountability and all of those grand words. What happened? Lo and behold, just before the House convened it had an unelected person appointed as a senator.

Then, further embarrassing to the House I would suggest, we had the minister who had the file on softwood lumber cross the floor two short weeks after the election. People in that member's riding, who worked hard to elect a Liberal, suddenly found themselves waking up one morning with a Conservative member.

Maybe I should have said switching allegiances because he did not physically get up and cross the floor. I think that would have taken a bit of courage and I do not see too much of that.

The government expects steelworkers, autoworkers and other workers in manufacturing in my riding to have faith in the Minister of International Trade. I can say there is not a chance of that. They are cringing. They are wondering what industry is next, that perhaps it will be one of theirs.

Our critic on this file from Burnaby—New Westminster has been warning the people of the country and the members in the House of what is happening. The critic has been in the House day in and day out drawing the attention of Canadians to this file. He has exposed the hidden costs of the softwood agreement to Canadians. He has also exposed the bullying tactics of the Prime Minister as the government goes after the industry to force it to support the agreement.

I have a quote from our critic. He said:

The [Conservative] government, who used bullying tactics to force support from the industry, is now using the tax system to punish his opponents.

The word is today, at least in some of the circles I was travelling in this morning, this deal may well be in trouble. If that is the case, it is certainly good news to this member's ears.

He also said:

Under the softwood lumber agreement, [the Prime Minister] and the [Minister of International Trade] are coercing Canadian softwood companies to hand over to the United States $1 billion of the $5.3 billion in duty deposits illegally collected by the Unites States Customs as a result of the softwood lumber dispute.

On top of that, we have had case after case where we have won rulings on this dispute. It is beyond me why our government would cave in and position us in front of the Americans as people who are on our knees when we do not have to be. We can win the next round of legal battles, the future litigation that is going to carry on, but more importantly, we have to prepare the way for the next sector that comes under attack from the Americans.

The Conservative government is again slapping on the Canadian softwood companies that refuse to join in this fiasco, for the lack of a better word, a 19% charge applied as a percentage of the refunded deposits. The charge would not be collected from companies who abide by the agreement. This is an abuse of power, especially when we have won, as I have said before, in the court of law. Canadian companies owe nothing to the United States. It baffles me why we are giving a billion dollars to the Americans.

Steelworkers and members from Hamilton are very concerned. American litigation will likely resume on future files. The Bush government recently moved to overturn the U.S. court decisions of April 7 and July 14 on the NAFTA and the Byrd amendment. This is clearly a very plain and simple, even simple enough for the government to get it, indication of what is coming.

We have a dispute settlement mechanism within NAFTA that we are flouting with this agreement. It is beyond belief that our government would do this to the workers in the softwood industry.

Our leader was in Thunder Bay recently. He was there to show the workers that at least some members in this House were standing with them on this. It was very clear that the members of the government were not.

In the words of our leader, “The Prime Minister has sold out northern Ontario”. That is a fact. “This is a total failure,” he said. “One billion dollars left on the table in Washington”, he said, but worse, “the Bush administration now has a direct say in how we manage our forestry industry”.

Clearly, the actions of the Minister of International Trade fly in the face of democracy. I say the minister has sold out our country. He deserves to be ranked among the rogues and scoundrels that I spoke of in my opening remarks. I think the government will go down in history for this, maybe not ahead of the Diefenbaker government for cancelling the Avro, but it will be very close on the sellout of softwood lumber.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, I thank the member for his input on this important debate.

We have had several days of debate on this whole issue of softwood lumber, but what I have not heard from members is what I think is the real issue. The real issue is about trade. It is about trade under NAFTA. It is about the years that this country has spent to build up trade relationships under the various treaties we have.

I am very concerned about the whole issue of dispute settlement mechanisms. It appears that notwithstanding all this work that was done to establish the rules of the game, those rules have been set aside, through bullying tactics, to impose a deal on those who have no choice. I wonder if the member would care to comment on that.