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

November 21st, 2006 / 4:40 p.m.

The Acting Speaker Royal Galipeau

Before I recognize the next questioner, I would like to advise the hon. member for Hamilton East—Stoney Creek to address his comments through the Chair, in the third person and all that.

The hon. member for Trinity—Spadina.

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 4:40 p.m.

NDP

Olivia Chow NDP Trinity—Spadina, ON

Mr. Speaker, we know that 10,000 Quebec forestry worker jobs have been lost in recent years. These 10,000 forestry workers have not been consulted. They have not been asked as to whether there should be--

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 4:40 p.m.

Bloc

Gilles-A. Perron Bloc Rivière-des-Mille-Îles, QC

Baloney. You're lying. They've been consulted.

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 4:40 p.m.

NDP

Olivia Chow NDP Trinity—Spadina, ON

Allow me to finish.

The 10,000 forestry workers were not consulted regarding this agreement. We know that the 1,500 Canadian softwood companies that were slapped with punitive taxes by U.S. customs were not consulted.

The minister initially consulted with a core group of 25 large softwood companies and the consultation was kept secret. Subsequently, a letter of invitation was mailed to a total of 300 companies but smaller businesses were never consulted. The list of the 300 companies has not been made public and many witnesses, who were invited by the NDP and other opposition parties to appear at the committee hearings, confirmed that they were excluded. Even the Governments of Saskatchewan and Manitoba were not really consulted.

I have a question for the Hamilton East—Stoney Creek. Would his constituents be interested in being consulted on the $1 billion that were left at the table and which belong to Canadian taxpayers and Canadian companies? Would the member like to perhaps talk to his constituents as to how many ways that $1 billion can be spent?

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 4:40 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Mr. Speaker, the one thing I know about the history of Hamilton, Hamilton East and Stoney Creek as well is that the workers there are a group of people who want to be heard. When I return home I listen to them discussing the fact that the hearings--

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 4:40 p.m.

The Acting Speaker Royal Galipeau

Resuming debate, the hon. member for Trinity—Spadina.

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 4:40 p.m.

NDP

Olivia Chow NDP Trinity—Spadina, ON

Mr. Speaker, there is a famous song that asks, if I had a million dollars, what would I do with a million dollars? I want the House to think about what we would do if we had $1 billion. It is really quite tragic that Canada caved in at a moment of strength, given that international rulings continued to land firmly on our side.

This deal will kill the NAFTA process which has favoured Canada's position and forfeited at least $1 billion plus hundreds of millions dollars more in interest that would have come our way had our negotiators hung tough.

On April 7 the United States Court of International Trade ruled that the U.S. industry was entitled legally to no money, not a penny, none of it. Well, 20 days later the U.S. coalition was offered a deal to take $500 million. Of course they said yes. Of course they would want the $500 million because they were not entitled to one penny and yet they got $500 million. That is a really good deal for them.

Second, the net present value at the end of April was not the same as it was at Christmas especially as the pot kept growing. We talked about the $500 million but there was more. Actually, $450 million would go to some kind of meritorious initiatives in the United States. Why? How? Why is Canada providing foreign aid to the United States? Is the United States poor? Is it desperate? Is it in need of financial support? Are U.S. citizens suffering from AIDS and have no funds to pay for medication? Maybe the people are poor, but the government is not poor. Are the Americans suffering from bad water, dirty water, and they have no funds to clean their water? They must be desperate. That is probably why our minister gave $450 million directly to the President, not to congress. I do not quite understand it. This is a lot of money.

Not only is the $500 million going to the coalition, but it is Canadian money that is going to the President himself. Congress will not be involved in any way with this agreement. The Government of Canada is making a gift of $450 million to the President of the U.S. Perhaps this is the price of friendship between Canadian prime ministers and U.S. presidents. It is not the first time.

We have a nasty habit of prime ministers wanting to do everything to please presidents of the United States of America. Last year in the summer I recall that the former prime minister committed Canadian troops to go south in Afghanistan just before he visited the United States President. This time we are giving the Americans $1 billion.

The U.S. consumer lobby was shocked by this deal. The American consumer group could not believe it. American consumers for affordable homes claims to represent 95% of U.S. lumber consumption. It is especially shocked by the fact that $1 billion of the $5 billion collected by the U.S. government will not be returned to Canada despite the fact that we kept winning all the trade deals in the courts. That lobby group reports that $1 billion will be put into two funds and the lobby cites statistics of the U.S. census bureau that show that higher lumber prices will result because the tariffs have priced 300,000 Americans out of the market for new homes. That is also the impact of this agreement.

Imagine what we could do with $1 billion. I asked students just a few minutes ago and they said it would be really useful to invest in some training programs.

What about some English language training for new migrant workers? What about helping some new immigrants to get certification and employment opportunities in areas of need, such as nurses, doctors, et cetera, especially in our northern communities and communities where a lot of lumber is being cut and where there is a lot of unemployment. It would be wonderful to have some money for training.

It would also be wonderful if there was some money for transportation and infrastructure in order to reduce energy costs, perhaps some community centres for young people, or some grants for arts and culture and some workshops.

Within three minutes the students were able to think of at least seven to eight different ways on how to spend the billion dollars. It is so sad knowing how many forestry workers have lost their jobs recently. As I said earlier, in Quebec alone almost 10,000 forestry workers have lost their jobs in recent years. Will they get any of this $1 billion? No, because this $1 billion has gone completely to the United States.

We know that because of this deal we will have significant job losses. Why? Because this deal will discourage Canadian value added production. It will stimulate raw log exports rather than having the logs dealt with here and creating jobs in Canada. This deal does nothing to protect that. Because of the quotas and export taxes producers will not be hiring workers back if they do not see any room for expansion in the future.

The Québec Forest Industry Council said that there will be massive restructuring or layoffs. The Ontario Forest Industry Association said that there will be shuttered mills and unemployment, and that about 20% of the mills could close as a result of the policies of this government.

This deal is bad for the industry. It is bad for Canadian taxpayers. It is bad for a lot of towns and it is certainly not good for this government to accept it.

Last, it is fatally flawed because there is no democratic process. As I said earlier, there was no process where the majority of these companies were consulted. Certainly, most of the companies that must now pay this tariff were not consulted. Only the very big companies and a percentage of the 300 small businesses were consulted, the rest were not.

I urge members to take a close look at this and vote with their hearts and not support this deal.

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 4:50 p.m.

Conservative

Laurie Hawn Conservative Edmonton Centre, AB

Mr. Speaker, I listened with interest to my hon. colleague and she loves to sing songs. I will get to that in a second. However, a big part of the downturn in employment in the industry might have something to do with the fact that housing has slowed down considerably and people simply are not buying lumber.

She loves to sing the song about “If I had a billion dollars”. She comes from the “glass 20% empty” club. We, and the Bloc, and I think a lot of other members in the House come from the “glass 80% full” club. So, when she is making up songs, I wonder if she would mind making one up that says something like, “If I had $4 billion what would I do?”

Does the hon. member have any idea what the workers and the companies are doing with the $4 billion that they have now because of the good work of this government?

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 4:50 p.m.

NDP

Olivia Chow NDP Trinity—Spadina, ON

Mr. Speaker, there are a lot of things that I am good at and singing is not one of them.

I did not know there is a housing slowdown. If I look at my own city, there is a housing boom. In the last five to eight years there have been many condominiums and houses built all across the greater Toronto area. Certainly, there is no shortage of builders in need of workers and lumber. I do not understand where this is coming from. What does the member mean that there is a housing slowdown? I have not noticed that there is one.

The other thing that we know is that we are entitled to $5 billion. We know that especially after a court decision that was so clear. It was not the first or second decision. There has been court decision after court decision that has said the $5 billion belonged to Canadians. It does not belong to the bullies. The coalitions have been bullying us and we are now paying money to the bullies. This is their reward for bullying us. That does not make any sense whatsoever.

Really, we are rewarding them with $500 million for causing our lumber industry to suffer and layoff workers over the years. Instead of pushing back, we give up and say, “Thank you for bullying us, take this $500 million and take the $450 million for your President who has given you so much strength to bully Canadians”.

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 4:55 p.m.

Bloc

Gilles-A. Perron Bloc Rivière-des-Mille-Îles, QC

I have a comment for my colleague opposite. She said there is a housing boom. In Ottawa the buildings and condominiums going up are made of concrete. She should have come out of her cocoon in Toronto for a while and gone to Kapuskasing, Timmins, Englehart, Swastika, New Liskeard, Cobalt and Tri-City, to see how many houses were built this year in those towns. She also could have come to Abitibi, to Rouyn-Noranda, Amos, La Sarre, Mont-Laurier, to my riding of Rivière-des-Mille-Îles and to Saint-Eustache.

How many houses were built of wood this year? There is a housing slowdown.

In my opinion, my colleague should take the time to assess the rate of construction in Quebec and Ontario before making comments or saying that we have not consulted our people.

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 4:55 p.m.

NDP

Olivia Chow NDP Trinity—Spadina, ON

Mr. Speaker, I certainly believe in consultation, unlike other members in the House who do not. Most Canadians are suffering through it.

No, it is not just Toronto. It is also Vancouver and Ottawa. Many big cities are in fact having a housing boom. I know why there is no housing boom in many small towns. I visited Thunder Bay recently and its lumber companies are going bankrupt. They are going bankrupt because they have been harassed year after year due to the softwood lumber trade.

In the towns the hon. member was talking about even Domtar has closed down its shop and is laying off forestry workers. That is why these towns are having trouble. The workers are really having difficulty. They are in their forties and have--

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 4:55 p.m.

The Deputy Speaker Bill Blaikie

I am sorry to interrupt the hon. member for Trinity—Spadina but her time has expired. I now recognize the hon. member for British Columbia Southern Interior.

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 4:55 p.m.

NDP

Alex Atamanenko NDP British Columbia Southern Interior, BC

Mr. Speaker, Bill C-24 is a sellout. It is another example of a decision made to appease our American friends.

What are some of the points?

It is based on the falsehood that Canadian softwood lumber industries are subsidized. That is not the case.

It gives away $500 million in funds owned by the Canadian softwood lumber industry to subsidize the U.S. Coalition for Fair Lumber Imports. That does not sound right.

It provides $450 million in funds to the administration of the United States, which will be used at its discretion, without Congress approval and accountability.

It can be cancelled unilaterally at any time, which does not provide stability and predictability to the Canadian softwood industry.

There are other points. I will go on a bit more about them later.

Our Prime Minister betrayed the workers in Canada's forestry sector. The government gave up a billion dollars to Washington. Now the Bush administration will have its say in how our forestry industry is managed.

Furthermore, an agreement was reached without any real opportunity for true, open and transparent debate on the issue. This also reminds me of what is happening to the Canadian Wheat Board.

The proposed dismantling of Wheat Board single desk is much the same chain of events. For a long time the Americans have wanted to see this happen. It is just another example in a series of sellouts of our Canadian sovereignty.

This does not surprise me in light of the context of what we call the proposed North American union. If we look at this, we can see why this is happening. We can see that there is no doubt that there is a proposed takeover of Canada by the Security and Prosperity Partnership of North America, a deal through which we are being led by increments into what is called the North American union.

The SPP, the Security and Prosperity Partnership, was launched in March 2005 as a trilateral initiative to fast-track this deep integration of Canada, Mexico and the U.S. through the harmonization of 300 common areas of legislation and regulations. Discussions on plans for continental integration went underground once the member for LaSalle—Émard, Vicente Fox and George Bush signed the agreement in March 2005.

And now we see officials from Canada, Mexico and the U.S., former ministers from previous Liberal governments, North America's top corporate executives, and top Canadian and U.S. military brass, meeting in secret at the executive Fairmont in Banff a little while ago, in September, as sanctioned by the Canadian Council of Chief Executives. No media or general public from any of the three countries were informed about or invited to this meeting. The government has refused to release any information.

At the same time, we are seeing ourselves bullied into signing the softwood lumber deal, which, within only a few days of signing, has resulted in the loss of 2,500 jobs, with many more on the way. I had feedback on this in my riding when I was there just a few days ago.

We are witnessing a movement toward a Canadian military economy, based on the American model and fashioned after the U.S., as we divert billions of tax dollars to the military-industrial complex to spend on hardware to fight the wrong mission in Afghanistan.

As I mentioned earlier, we are witnessing a blatant attempt to destroy the Canadian Wheat Board, a great Canadian success story, for the benefit of multinational corporations that now control 80% of the world's grain trade.

The pattern is here. We have to wonder where democracy factors into all of this and why there is all this secrecy among all of those powerful people. Under this proposal, what would a North American union look like? Would the wages of the workers in Mexico be brought up to the level of the minimum wages we enjoy in Canada, or would it be the other way around? Will the U.S. finally develop a universal health care system for citizens? Or will we adopt its system? Will we create a new currency or adopt the U.S. dollar? What will the new union flag look like flying along the NAFTA superhighway as they build the four lanes from Mexico to Alaska?

Once again, I suspect that all of these deals, step by step, are in a series of steps in a recipe for lower standards and a lower quality of life in many areas such as food security, air safety, environmental norms, health care, labour and human rights. All of these are issues that our party is trying to stand up for and fight for on behalf of average Canadians. Canadians have a right to decide whether these plans for merging our three countries are really in the best interests of anyone who has not been invited to those meetings.

Let us continue and look at some of the aspects of the softwood lumber agreement. It constrains trade unreasonably by applying punitive tariffs and quotas that hinder the flexibility of the Canadian softwood industry. This deal infringes on provincial constitutional prerogatives, by both Ottawa and Washington.

What is most important is that it kills the credibility of the NAFTA dispute settlement mechanism, which would have ensured the full refund of the money illegally collected. What does that do? It sets a precedent for other industries and other aspects of society that challenge the rules of the NAFTA process. It sets a bad precedent not only for softwood lumber but also for the whole industrial sector in Canada.

It fits in with framework that I have just talked about with this supposed or proposed North American union. What does it do for the thousands of workers who have lost their livelihoods over the past five years? Would this potentially trigger significant job losses through further consolidation caused by the quotas and export taxes which would cap market access and growth?

The agreement also forces further downsizing of the Canadian softwood industry, with the accompanying huge impact on softwood communities throughout Canada. We are experiencing that in my riding of British Columbia Southern Interior, where things are becoming more difficult and jobs are being lost in spite of this agreement.

The agreement discriminates against Canadian companies that refuse to sign on by resorting to bullying and fiscal arm-twisting.

I could go on and on. I see this as one of the steps that is the same as the proposed dismantling of our Canadian Wheat Board or the threat that might be there on supply management. Apparently there is not, but we think there is. It is all in regard to the whole idea of this North American union and the potential loss of our sovereignty. For this reason, I oppose this deal.

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 5:05 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Mr. Speaker, hearing the words “continental integration” made me want to bound to my feet in the middle of my friend's speech, because in the 1980s when we were fighting the free trade agreement one of the issues we were fighting for was the issue of trying to avoid continental integration.

When we read that this agreement infringes on provincial constitutional prerogatives by both Ottawa and Washington and that the anti-circumvention clause allows Washington a right to oversight of and veto power over Canadian forestry practices, I ask the member this: how in the world does he figure that a sovereignist Bloc could have supported this agreement when it is a blatant attack on sovereignty?

Softwood Lumber Products Export Charge Act, 2006Government Orders

November 21st, 2006 / 5:05 p.m.

NDP

Alex Atamanenko NDP British Columbia Southern Interior, BC

Mr. Speaker, I do not know how anyone could support this deal. It is not a good deal, especially for those of us who are here to try to represent workers, working communities and working families. I think it is a bad deal.