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

This bill is from the 39th Parliament, 1st session, which ended in October 2007.

Sponsor

David Emerson  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-24s:

C-24 (2022) Law Appropriation Act No. 2, 2022-23
C-24 (2021) Law An Act to amend the Employment Insurance Act (additional regular benefits), the Canada Recovery Benefits Act (restriction on eligibility) and another Act in response to COVID-19
C-24 (2016) Law An Act to amend the Salaries Act and to make a consequential amendment to the Financial Administration Act
C-24 (2014) Law Strengthening Canadian Citizenship Act
C-24 (2011) Law Canada–Panama Economic Growth and Prosperity Act
C-24 (2010) Law First Nations Certainty of Land Title Act

Votes

Dec. 6, 2006 Passed That the Bill be now read a third time and do pass.
Dec. 4, 2006 Passed 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, as amended, be concurred in at report stage with further amendments.
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 50.
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 18.
Dec. 4, 2006 Passed That Bill C-24, in Clause 17, be amended by: (a) replacing lines 42 and 43 on page 12 with the following: “product from the charges referred to in sections 10 and 14.” (b) replacing line 3 on page 13 with the following: “charges referred to in sections 10 and 14.”
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 17.
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 13.
Dec. 4, 2006 Passed That Bill C-24, in Clause 12, be amended by replacing lines 2 to 13 on page 8 with the following: “who is certified under section 25.”
Dec. 4, 2006 Passed That Bill C-24, in Clause 10.1, be amended by: (a) replacing line 27 on page 5 with the following: “referred to in section 10:” (b) replacing line 12 on page 6 with the following: “underwent its first primary processing in one of”
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 10.
Dec. 4, 2006 Failed That Bill C-24, in Clause 107, be amended by replacing lines 37 and 38 on page 89 with the following: “which it is made but no earlier than November 1, 2006.”
Dec. 4, 2006 Failed That Bill C-24, in Clause 100, be amended by replacing line 3 on page 87 with the following: “( a) specifying any requirements or conditions that, in the opinion of the Government of Canada, should be met in order for a person to be certified as an independent remanufacturer;”
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 8.
Oct. 18, 2006 Passed That the Bill be now read a second time and referred to the Standing Committee on International Trade.
Oct. 16, 2006 Failed That the motion be amended by deleting all the words after the word "That" and substituting the following: “the House decline to proceed with 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, because it opposes the principle of the bill, which is to abrogate the North American Free Trade Agreement, to condone illegal conduct by Americans, to encourage further violations of the North American Free Trade Agreement and to undermine the Canadian softwood sector by leaving at least $ 1 billion in illegally collected duties in American hands, by failing to provide open market access for Canadian producers, by permitting the United States to escape its obligations within three years, by failing to provide necessary support to Canadian workers, employers and communities in the softwood sector and by imposing coercive and punitive taxation in order to crush dissent with this policy”.
Oct. 4, 2006 Failed That the amendment be amended by adding the following: “specifically because it fails to immediately provide loan guarantees to softwood companies, because it fails to un-suspend outstanding litigation which is almost concluded and which Canada stands to win, and because it punishes companies by imposing questionable double taxation, a provision which was not in the agreement signed by the Minister of International Trade”.

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 12:50 p.m.

Niagara Falls Ontario

Conservative

Rob Nicholson ConservativeLeader of the Government in the House of Commons and Minister for Democratic Reform

Mr. Speaker, I never cease to be amazed by the logic or illogic of the New Democrat Party.

First, the hon. member, instead of talking about the softwood lumber agreement, went on at length about the Wheat Board. What surprises me about that is why the hon. member does not want western farmers to have the same freedom of marketing that we have in Ontario. I cannot justify that. I am an Ontario member of Parliament and I cannot justify not giving the same freedom to western farmers as farmers have in Ontario. There is no reason for that whatsoever. I am surprised he is not doing that.

With respect to the softwood lumber agreement, these are the facts. We have two countries that have come to an agreement on this, and it is not just Canada and the United States. I know the NDP members do not like the United States and they do not like to have anything to do with the United States. Nonetheless, it is our major trading partner and trade relationships between the two countries are very important to Canadians.

The two countries have agreed to the deal but we need to look at who else has agreed to it: the three largest provinces in this country which do not have Conservative governments. There are Liberal governments in British Columbia, Ontario and Quebec. The three largest provinces with a softwood lumber industry all support this deal and the industry itself overwhelmingly supports it. Of course they support it in Atlantic Canada, they received an exemption.

Why is it that the NDP members think they are the only ones right and everybody else is wrong? Have they not figured out that this is what has to be done?

The hon. member said that he was a negotiator with the union. He must know, even if his colleagues do not understand, that every time an agreement gets made there has to be give and take on both sides. It cannot be all on one side, everything for everybody and nothing on the other side, because that is not how agreements are made. The hon. member should know that if he has been in negotiations. I appreciate that most of his colleagues have never had to make an agreement, but he should point out to them that there has to be that give and take.

Why does the NDP stand alone against everyone else on this great deal for Canada?

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 12:50 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

Mr. Speaker, I thank my colleague for pointing out the inexplicable bargaining stance that Canada adopted when it set out to negotiate this deal. I will show members its bargaining stance because I know a bit about negotiating.

The Conservatives' bargaining stance was on their knees. They were saying, “Please, please, leave us with our dignity. Leave us with something intact, please”. That was their bargaining stance. I am embarrassed as a Canadian that they came back with such a lousy package.

With what little time he has allowed me to keep, I would like to point out that we inexplicably threw away victories that were pending in the courts, not just in the free trade agreement panels but in the U.S. Court of International Trade. On April 7, it ruled that U.S. duties on Canadian softwood were illegal, just about the time those guys were down there rolling over, giving up and on their knees saying, “Well, we won the ruling, but we'll accept your last offer anyway”.

They announced publicly in the House of Commons the deadline by which they had to accept the deal. What kind of a negotiating strategy is that? Are they crazy?

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 12:50 p.m.

NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr.Speaker, what we have is a court decision that these tariffs were illegal and this government comes into this House and asks the members of Parliament to stand and vote on a new tariff to replace an illegal tariff that would add even more to that tariff. The government then puts in a predatory clause to go after the companies that continue to stand up for their legal rights and collect even more tariffs.

As well, we are being asked as members of Parliament to support the fact that the government has given away provincial resource rights to the United States.

As well, it has brought in clauses that would allow the government to go after individual companies for the finances if they stand up.

Has the member ever seen a deal that is so bad? Not only did the government sell us out but it is acting in a predatory fashion against our own companies?

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 12:55 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

The amazing thing, Mr. Speaker, is this is the second time a Conservative government has sold us out on this deal. In 1986 the GATT, the World Trade Organization's predecessor, issued a preliminary finding in Canada's favour on the legality of U.S. lumber duties, but the prime minister of the day, Brian Mulroney, chucked that out. He was so eager to sign the free trade agreement he threw that ruling out and aborted the appeal.

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 12:55 p.m.

NDP

Paul Dewar NDP Ottawa Centre, ON

Mr. Speaker, I rise today with some concern about our sovereignty, not just on this deal but many other issues and files. Many people have talked about the softwood lumber industry only affecting the hinterland, but Bytown was built and formed on the lumber industry. I hate to think what my ancestors might be thinking if they were to see this deal. They would see we have sold our sovereignty down the river. We used to have a country, but we have sold it.

We have won every time we have challenged the Americans and they have challenged us. The government is using accusations of Liberal lawyers, which is tantamount to selling out by way of fighting. I do not understand the logic when we have won at every trade deal dispute panel.

Another was NAFTA. There were aspects of that agreement with which we disagreed, but the most contentious and hardest fought part was the dispute settlement mechanism. If this deal goes through, we will be saying it is worth nothing, nada, rien. What we have shown by our acquiescence is that we do not have the fight in us any more. The dispute settlement mechanism and all the pieces in the trade agreement, with which the NDP had large problems, even the little pieces that would allow us to exert our sovereignty, are gone. They are blowing in the prairie wind. We need to take a look at this deal in light of that. We need support for our communities.

I was recently in Thunder Bay and I spoke to the people. I did not speak only to people who were supportive of the New Democratic Party. I spoke to mayors and councillors and to people living in the communities as well. These people basically were giving away their homes. They asked why the government was not there for them. They see the government giving $500 million to the other side to sharpen the guillotine. They see us putting our necks on the line. They are shocked, appalled and very angry. They hear the government say, on one hand, that it will stand up for Canada. On the other hand, they see it go to Washington and sell us out.

Canadians do not need members standing in this place saying that they are standing up for Canada. Canadians need another voice. They need to hear that we are here for their communities, that we are here to ensure that the people who built the country, communities and places like Ottawa and Gatineau will be honoured and that we will not sell them out. With this deal, we are selling out our ancestors. We are selling out the whole idea of what it was to have a sovereign country.

Let us talk about some of the problems in this deal. I will not have time to go over all of them because there are too many.

The deal is based on the falsehood that the Canadian softwood lumber industry is subsidized, and we fought that in court. That was the argument of the Americans. That was thrown out not only from our side but from the American side as well. What does the government do? It basically says that the Americans are right, that we are subsidizing our industry. What is even worse it is giving the Americans money to fight us again.

The agenda is to take away our management system, which ensures we have a sustainable industry, unlike that in the United States where there is no sustainable industry. We are going to integrate our management system with theirs. That is the agenda, let us be real about this. That is the elephant in the room. The Americans would like us to adopt their management practices. Then we can take the whole industry, move it south and forget about having an independent voice vis-à-vis softwood lumber.

This deal gives away the $500 million. It provides $450 million in funds to Washington, which will turn around and use those funds at its own discretion. If that is not absurd, then I do not know what is. This deal puts unreasonable constraints on trade by applying punitive tariffs and quotas that hinder the flexibility of our industry.

We need to be nimble, responsive and ensure that we have a sustainable economy, but that is gone because of this deal. When I go to Thunder Bay again, people are going to have a lot of questions about who is standing up for them.

What is happening in these communities? People are putting for sale signs on their homes, asking for the best offer. They are moving, some out west to get jobs and some to Toronto. This is ripping communities apart and they are looking for help. This deal will not help them at all. In fact, it will make more communities fall apart.

The deal kills the credibility of NAFTA. It sets a bad precedent. It is really important for all Canadians to understand this. The deal is based on precedent. All the dispute settlement mechanisms have been built into agreement. We have put forward arguments, indicating that we are right and our arguments have been okayed by both sides. Internationally, Canada has been seen as being right. If we acquiesce to the other side, we are setting a precedent and sending a signal that we are not going to stand up for Canada.

We need to talk about the thousands of workers who have lost their jobs. One of the first files I dealt with when I was elected involved lumber workers who had been thrown out of work. Those workers did not go to other jobs in the industry. Many of them had nowhere to land. Sadly, that is the story across the country.

This deal discriminates against Canadian companies. It also affects communities. Communities will not trust the government any more after it gave a blank cheque to Washington. People will probably look within their own communities for help because they cannot depend on the federal government. It has sold them down the river.They will try to find other ways to get help, and that is a real sad commentary.

We have talked about the consultation process before. It was held in a closed shop. Consultations were not held from coast to coast to coast to find out how this deal would affect communities. Instead, it was done held behind closed doors where only certain people were invited. Even in that process, duct tape was affixed to people's mouths. They were told not to talk about anything and if they did, they would pay the price. That is really pathetic. Even then, some are not abiding by the Conservative Party line.

We are left with a real dilemma for Canadians. They see a government that ran on the ticket of standing up for Canadians, but what they ended up with was a sellout. They have ended up with a softwood sellout that essentially shows the government has acquiesced. We used to have a country, but we are selling it down the river. This is a sad day for Canada.

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 1:05 p.m.

Wellington—Halton Hills Ontario

Conservative

Michael Chong ConservativePresident of the Queen's Privy Council for Canada

Mr. Speaker, I want to respond to the comments in debate of the member for Ottawa Centre on the softwood lumber deal. I think the facts should be put on the table.

The fact is that the country was facing a situation whereby the United States was continuing to collect duties on softwood lumber and other products. The United States government had actually amassed and collected over $5 billion in duties. This is not money we had. This was in the country south of the border. The United States government had collected these duties. The fact is that litigation was continuing. The litigation was continuing to go on. There was no end in sight for that litigation. Those are the facts.

This government took leadership. The government sat down with the Americans to try to negotiate an end to this. We have been successful.

The options in front of the government were twofold. The first option was to continue litigation. There was no guarantee that we would win that litigation. As a matter of fact, while that litigation was going on, which could very well have taken years, the government of the United States would have continued to collect these duties, getting hundreds of millions of dollars more in duties. There was no guarantee that in the end we would have won that litigation.

The other option was for the Government of Canada to sit down with the United States government. That is what we did. We negotiated a great agreement. As a matter of fact, it is so good that three of the major softwood lumber producing provinces supported this deal: the province of British Columbia, which has a provincial Liberal government; the province of Ontario, which has a provincial Liberal government; and the province of Quebec, which has a provincial Liberal government. The agreement is supported by the vast majority of softwood lumber companies in the industry. It has broad support across a variety of stakeholders and a variety of groups across the country.

My question for the hon. member is this: why are he and his party using the rhetoric of anti-Americanism to oppose this deal?

I have to say something else before I end my remarks. As a member of this House and a proud member of this government and this party, I take offence when members of the NDP stand up in this House and question my loyalty and that of my party and question my commitment to this country and that of my party.

My parents were immigrants to this country. They worked hard when they got here. They built for themselves and their family a life of opportunity and hope. I do not need to take any instructions from the NDP as to the commitment I have and my government and my party have.

Will the member cut out the anti-Americanism?

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 1:05 p.m.

NDP

Paul Dewar NDP Ottawa Centre, ON

Mr. Speaker, it is a sad day when we have a government like this. The member asked about why should we keep going. It is because on this side we are not quitters. We have a government that says it cannot do better, but we were doing better.

I am very taken by my hon. friend's story, but we are all descendants of immigrants, with the exception of some of our aboriginal friends in this place. In my case, it was Scottish immigrants. My ancestors came here with common sense and determination and wanted to make a difference. They were not quitters.

If only they could see what is happening today. We actually won the decision on April 7. We won, so why are we cutting deals and giving away money? People do not give up when they win. That is when people dig deep, like our ancestors did when they built this country. We do not give it away. We sign a deal, fine, but we have to make sure it is a deal that is good for all of us. We do not give away the store.

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 1:05 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

Mr. Speaker, I want to thank my colleague for his calm, level-headed recitation. I will apologize. I may have overstated things in my zeal and enthusiasm. This is why I rely on my level-headed colleague from Ottawa Centre to temper remarks with reason and balance and to make the same compelling argument that there was no business case for giving up when the government did.

The government was on the road to success. The U.S. Court of International Trade actually ruled in our favour on April 7, at the same time that our minister and his minions were down in--

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 1:05 p.m.

The Acting Speaker Royal Galipeau

The hon. member for Ottawa Centre.

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 1:05 p.m.

NDP

Paul Dewar NDP Ottawa Centre, ON

Mr. Speaker, my father helped negotiate the General Agreement on Tariffs and Trade and I will say one thing: he never ever would have come back to his minister and said that this deal was a good deal. He would have said to keep up the fight and make sure it is good for Canada.

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 1:10 p.m.

The Acting Speaker Royal Galipeau

Is the House ready for the question?

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 1:10 p.m.

Some hon. members

Question.

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 1:10 p.m.

The Acting Speaker Royal Galipeau

The question is on the amendment. Is it the pleasure of the House to adopt the amendment?

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 1:10 p.m.

Some hon. members

Agreed.

No.

Softwood Lumber Products Export Charge Act, 2006Government Orders

October 6th, 2006 / 1:10 p.m.

The Acting Speaker Royal Galipeau

All those in favour will please say yea.