Bill C-411 (Historical)

An Act to amend the Special Import Measures Act (domestic prices)

This enactment sets out the conditions required for deeming whether domestic prices in a country are substantially determined by the government of that country and there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market.

Economic and Fiscal Statement

[Diane Bourgeois, Bloc, Terrebonne—Blainville, QC]

Mr. Speaker, to begin, I want to thank my colleague, the member for Sherbrooke, for the opportunity to join the debate and to take 10 minutes to express my views on this economic statement. Before doing that, since this is the first time that I have spoken officially in the House in this session, I would like to thank the voters of Terrebonne—Blainville who, for the fourth time, have given me their confidence. I thank the voters, the volunteers and my own staff who helped me to a great victory. I will not hide the fact that all the members of that devoted group are ready to start again tomorrow, if necessary.

One would have expected, after an election fought over the economy, that the economic statement would be filled with figures. You will remember that we were thrown into an election campaign because this Prime Minister and this government said it was time to talk about the economy. Regretfully, we have been given an economic statement that resembles nothing so much as more laissez faire. It is an ideological statement that shows no signs of compassion towards the people and the companies having trouble getting through this crisis, because this is now a global economic crisis.

We know that all the countries around us—even the European countries—have injected billions of dollars to support their economies and to help people get through this crisis. The European Union has injected $200 billion and the United States has injected $800 billion. We believe that if our government had not been so disconnected, if it had shown the compassion it should have for the people who do not receive the same salaries as we do, and who do not live in the same conditions, possibly this government could have injected some money and introduced economic measures to help the people of this country.

As the head of the Bank of Canada said, we could even go into a temporary deficit that could be repaid over a period of time. But this government does not want to hear about deficits, anything but that. We know that, in economic terms, when we are faced with a crisis we must expect a little deficit that can be offset later.

Instead of stimulating the economy and providing some breathing room for the country, this government chose to strangle it. Most appalling of all, instead of the economic measures one might expect in an economic statement, what we received was a big slap in the face; a real blow. It is as though there were only some sectors that needed to be knocked down, instead of helping the country in general.

Those blows, that slap in the face, have led to the formation of the present coalition. The Conservative leader, and this government, decided to abandon our businesses and our people. All countries agree: when there is a full economic crisis, in principle, we should be creating jobs. We could have people working to build houses for those who need them. We could, perhaps, put people to work developing transportation and transportation infrastructures. Unfortunately, that is not what happened. Nothing was announced.

The Bloc Québécois has already put forward proposals. We put forward a whole series of measures but those measures were not listened to and not taken into consideration. They could have suspended the compulsory repayment to the home buyers’ plan for a year.

We are all familiar with these young couples who are in trouble. They were told they could use virtual RRSPs as their down payment on a house. Not only must they pay their mortgage, but they must also pay for their virtual RRSPs—which do not exist and were loaned to them—and their taxes. Both spouses must work, and they feel economically and socially suffocated. That is also difficult. No one ever thought of giving these people a little breathing room.

They could have done that by giving people jobs, by creating a fund that provides money for home renovations that will improve energy efficiency. In my riding, people tend to heat their homes with oil. I have an older house and heat with oil. Why? I could not heat it with electricity because it would cost more. The house is not insulated for electric heat. I for one would have liked to see an eco-energy program.

The equalization formula could have been fully respected. It was a brutal slap in the face to Quebeckers when they were told they were being denied the equalization surplus. The guaranteed income supplement for our seniors could have simply been increased gradually. Their old age pensions increased by about $2 a month, sometimes only $1.09. That is barely enough to buy a cup of coffee. Also, seniors who were eligible for, but cheated out of, the guaranteed income supplement could have been gradually reimbursed.

They could have expanded access to employment insurance and eliminated the waiting period. They could have provided more support for people who work in agriculture. They could also have extended the ecoAUTO rebate program that suddenly disappeared. These were good programs. Unfortunately, they are not being given any consideration. Those programs could have helped ordinary people. But ordinary people are not important to these people. What is important to the government opposite is industry. But there again, they have not helped it. They have not created loan guarantee programs that would have provided cash to invest, for example. Last week, two companies in my riding closed down for lack of cash flow. The cuts to the technology partnerships program could have been stopped. They could have given them a shared risk program.

They could quite simply have modernized Canada's outdated antidumping laws and brought them up to the same level as what other countries in the European Union have. In fact, I introduced a bill to that effect, Bill C-411. They did not do it. They can also, as the Bloc said, even use government procurement as a lever for economic development. How many of our businesses would be happy to help Public Works and Government Services Canada, but are not allowed to because PWGSC buys from American subsidiaries? They could have implemented specific policies for the industrial sectors that are facing special challenges, such as traditional industries.

They could have done a lot of things, but no, what we got from this government was a slap in the face. That is not what an economic statement is. Unfortunately, the present government is the author of its own misfortune. We who believed when they talked about action, and compromise, and openness, at the time, we have, in a sense, been had. The public has been had, because it was not expecting this kind of economic statement, not remotely. We get email after email from people who are disappointed, even anglophones in the western provinces.

This statement is clearly devoid of any compassion for the people of Quebec. We will therefore quite obviously be voting against it.

[Serge Cardin, Bloc, Sherbrooke, QC]

Mr. Chair, it isn't that I want to speed things up. I was considering all of the comments that were made. I was coming to this point. This is precisely why I referred to Bill C-411.

In that bill, we were calling for measures to be implemented to make it possible to clearly identify occasions when other countries were engaged in dumping. Our words may have been misinterpreted: people may have thought that overall it was about protectionist measures against China. But we specified that we simply wanted to adopt measures that would be up to the same standard as what the United States and the European Union have on antidumping rules. We were not talking about unhealthy protectionism in this case; this is in fact an accepted practice.

In their trade with other countries, the United States and the European Union apply antidumping criteria to certain products, and when those products do not meet the criteria, they charge duty. This kind of process would help our businesses, at least indirectly. We do have to play on the same field as our competitors if we want to be competitive at a certain level, at least when it comes to establishing prices. There must not be exploitation, on either side, and of course the WTO guidelines must be respected.

In other words, we do not want to see the government taking measures that directly contravene the WTO guidelines. We do not want it to be described as protectionist. Even though our neighbour is particularly protectionist and does everything possible to protect its market, we do not want to act that way.

If you need any clarification, I will be happy to provide it.

[Serge Cardin, Bloc, Sherbrooke, QC]

To begin with, Mr. Chair, I will say that the recommendations made in this motion do not contravene the WTO rules in any way. That is why we can add the words "consistent with WTO guidelines" without a problem. That goes without saying. We are a member of the WTO and we certainly intend to act in a way that is consistent with its guidelines. While we may not like some of them, I hope that one day we will be able to assert ourselves at the WTO and get things changed. There are some guidelines that really should be changed.

To answer what Mr. Maloney seemed to be asking before, I will say that these are the terms, in my opinion. If it is not inconsistent with the agreements made with other countries, and it does not automatically contravene the WTO guidelines, there are several ways of providing assistance that we could more or less describe as indirect. For example, the government cut taxes, and automatically it was said that this was direct assistance to the forestry and manufacturing companies. I am not talking about money.

Mr. Miller is correct: there are other reasons why the manufacturing and forestry sectors are having problems, for example the value of the dollar, equipment and the need for technology. Money could be made available to companies for those purposes without contravening the WTO guidelines. That is possible. You all know it. We are also talking about bringing trade laws up to the standard of the United States and the European Union.

I am going to refer — and my colleague may go into this topic further — to Bill C-411. We have never understood why some people opposed it. Perhaps it was misinterpreted.

Special Import Measures Act

[The Speaker, Liberal, Peter Milliken]

Order, please. The House will now proceed to the taking of the deferred recorded division on the motion at second reading of Bill C-411, under private members' business.

The House resumed from December 6 consideration of the motion that Bill C-411, An Act to amend the Special Import Measures Act (domestic prices), be read the second time and referred to a committee.

Bill C-411

[Robert Vincent, Bloc, Shefford, QC]

Mr. Speaker, today members will vote on Bill C-411 on anti-dumping, at second reading. The Bloc Québécois is seeking the support of all members in order to help the Quebec manufacturing sector.

This bill will give the Canada Border Services Agency the tools needed to determine whether or not emerging countries are dumping goods. It provides for anti-dumping measures similar to those adopted by the European Union and the United States. I hope that this bill will pass the second reading stage and be sent to the Standing Committee on International Trade.

Our businesses will no longer be required to submit to incomplete investigations that do not protect them from dumping. Time is of the essence: 84,000 manufacturing jobs have been lost in Quebec since the Conservatives came to power. Passage of Bill C-411 is the opportunity to breathe new life into Quebec industries.

Special Import Measures Act

[Nina Grewal, Conservative, Fleetwood—Port Kells, BC]

Mr. Speaker, I am pleased to rise today on behalf of the constituents of Fleetwood—Port Kells to take part in today's debate on Bill C-411. It gives me great pleasure to be responding on behalf of the Minister of International Trade and specifically to support the comments of my colleague regarding the proposed amendment to Canada's trade remedy legislation.

The bill, introduced by the hon. member for Terrebonne—Blainville, raises issues that are at the heart of any discussion of Canada's competitiveness in the ever changing global economy. The Government of Canada is well aware of the opportunities and the challenges that international development presents for Canadian trade and investment interests.

I welcome this opportunity to discuss the government's approach and plans in this regard. Let me start with a few words regarding the international framework that underpins Canada's international commercial relations in general and specifically Canada's anti-dumping regime.

The World Trade Organization provides the rules that govern trade relations among the organization's 150 members. The membership includes Canada, plus all of our most significant trading partners.

The WTO framework consists of a series of agreements that are specific to particular areas of international trade policy. The agreement pertinent to today's debate is the agreement governing anti-dumping measures. While the WTO aims at equal treatment and a smooth flow of trade among its members, it also permits certain exceptions. Anti-dumping measures are one of these exceptions.

For those who are watching this debate, dumping occurs when a company exports a product at a price that is lower than the price it normally charges in its home market. The WTO rules spell out the circumstances in which a member may take measures against dump imports from another WTO member and the procedure for applying such measures.

Canada has implemented our rights and obligations under this agreement by means of Canada's Special Import Measures Act. This act falls under the Minister of Finance and its implementation falls under the Canada Border Services Agency and the Canadian International Trade Tribunal.

I observe that Canada's anti-dumping framework involves a transparent, quasi-judicial process for the review of complaints by Canadian companies regarding dumping by foreign competitors. The process provides for a balanced and impartial review of the legitimate concerns of domestic industries in Canada and the evidence provided by foreign suppliers and their Canadian customers.

In announcing the introduction of this bill, the hon. member indicated that goods from China are a target of the proposal. Allow me to speak for a few moments about Canada's trade with China.

China is Canada's fourth largest export market and our second largest trading partner. Last year, our bilateral trade totalled over $40 billion. In Canada's case, this meant $7.7 billion in exports of goods alone. These indicators point to a strong and growing trade relationship with China, with tremendous benefits for both sides. One need only observe the accomplishments for Canadian firms in China, for example, in the engineering, financial, transportation and communication sectors, to see how strongly Canadian firms can compete in the dynamic Chinese market.

This is just part of the picture. There is another message that the statistics tell, the fact that imports from China are over four times our exports to China. Canadian consumers benefit from such imports in terms of price and choice.

We have also heard the concerns of certain Canadian producers regarding the growth in imports from China. Some of these complaints allege that these imports are being dumped in the Canadian market or that they benefit from subsidy programs in China.

Canada has 11 anti-dumping measures in place regarding imports from China. In three cases where the products were found to be subsidized, the goods are also subject to countervail measures. These actions demonstrate that Canada's trade remedy system is working.

Canadian firms have made use of the system by formally registering complaints regarding certain imports from China. Trade remedy measures have been applied to these imports where such measures were found by Canadian investigators to be warranted.

While it is useful to remind ourselves of Canada's current trade remedy actions against imports from China, the trade remedy system is not the mechanism we should be looking to in terms of addressing the broader issue of Canada's competitiveness in China and other key markets.

The government monitors our trading partners to ensure that they are living up to their WTO commitments. This includes China. In most cases China has implemented the commitments it took on when it joined the WTO in 2001.

There are exceptions however. Last year Canada filed a challenge against China at the WTO regarding China's tariff treatment of imported auto parts.

Canada has a strong interest in the auto parts sector. Last year Canadian manufacturers supplied over $370 million in auto parts to China's growing auto sector.

Furthermore, the government has recently decided to join other WTO members in formal WTO consultations with China. These are consultations that focus on China's enforcement of intellectual property rights and on certain Chinese subsidy programs.

The consultations will provide opportunities for Canada to relay the concerns of Canadian stakeholders to Chinese authorities and to assess China's latest steps in both areas to bring its regime into compliance with its WTO obligations.

Consultation are the first step in the WTO's dispute settlement mechanism. If consultations do not succeed in resolving the matter under discussion, Canada, like other WTO members, has the option of requesting a WTO panel to adjudicate the issue.

Canada's new government recognizes that many Canadian manufacturers are facing intensified competition and are adjusting to fast-changing global realities.

The government has recognized that Canada needs a more competitive business climate and is committed to government policies that encourage investment and job creation.

The Minister of Finance's economic statement last fall presented a road map of policy directions, “Advantage Canada”.

“Advantage Canada” includes a plan, the government's global commerce strategy, to more aggressively engage the world beyond our borders. For instance, the government is committed to reinvigorating our trade policy while we continue to work toward a meaningful result in the Doha round of multilateral negotiations.

We are also committed to stepping up the negotiation of bilateral trade agreements, ranging from free trade agreements to improved relations and investment accords.

In the case of China a foreign investment promotion and protection agreement is a priority. In today's global market, investment drives trade and investment is the essential catalyst for technology transfer and the development of supply chain links.

We therefore see significant benefits for Canada from an investment agreement with China. As well, our plan is about showing the world that Canada is moving up the value chain.

We are getting the message out that Canada is a leader in science and technology, and a great place to anchor North American commercial platforms, particularly where science, technology and innovation links are key. The government's strategy is also about stepping up our presence on the ground in key--

[Robert Vincent, Bloc, Shefford, QC]

Mr. Speaker, I am very pleased to speak to Bill C-411, even though I am somewhat less pleased now that I have heard what the Liberals have to say. They think that the Canadian International Trade Tribunal can resolve all disputes. But how many of the tribunal's decisions has Ottawa respected since it was created? None. They should not be telling us that there are measures in place to ensure that the Canadian International Trade Tribunal's decisions are respected because Ottawa has not honoured a single one of the tribunal's decisions. The argument does not hold water; it does not make sense.

Where did Bill C-411 come from? The answer is easy: it came from the manufacturing sector's report. The report submitted by the Standing Committee on Industry, Science and Technology was unanimous. I will read the 10th recommendation from the report, a report that the Liberals, the Conservatives and the NDP all supported:

That the Government of Canada conduct an internal review of Canadian anti-dumping, countervail and safeguard policies, practices and their application to ensure that Canada's trade remedy laws and practices remain current and effective. This review would also include comparisons with other World Trade Organization members such as the European Union and the United States.

I did not write that text. The manufacturing sector did. We spent a year talking to representatives from industry, the manufacturing sector and unions. We included this recommendation in the report. I did not make this up. The report was unanimous.

As for making comparisons with the WTO, the European Union and the United States, the work has been done. We studied the issue because the Conservatives demonstrated zero political will to help the manufacturing sector. I thought the Liberals might understand because they have been asking the Conservatives to help the manufacturing sector. However, when it is time to walk the walk, they refuse to get up from their chairs. In contrast, the members of the Bloc Québécois are standing up for manufacturers.

I would like to read five criteria, which were not just pulled out of a hat. The United States and the European Union follow these criteria. The first is as follows:

Prices, costs and inputs have to be determined by supply and demand.

This is not the case in China, where things do not work based on supply and demand, but are determined by the president. Maximum salary levels, for example, would not be a production cost determined by the laws of the market. That is the first criterion.

The second and third criteria are as follows:

Firms have to have one clear set of basic accounting records, independently audited in line with international standards.

The production costs and financial situation of firms must not be subject to significant distortions carried over from previous non-market economy systems.

This could involve, for example, cheap privatizations. The fourth criterion states:

Firms are subject to bankruptcy and property laws.

They are therefore subject to these laws which provide legal security and stability for their daily operations. These types of companies are essentially unseizable, because bankruptcy laws are inadequate and cannot be enforced. So, these companies can operate indefinitely without paying their debts, which obviously cuts down on operating costs.

The final criterion reads as follows:

Exchange rate conversions must be carried out at market rates.

This includes a floating exchange rate determined for each transaction by the balance between supply and demand on the foreign exchange market.

This bill would specify the conditions for determining whether a country meets the economic definition of market during the assessment of the normal value of goods that are part of an antidumping investigation.

The United States and the European Union have these five criteria. Why is Canada going its own way? For us, it is no big deal to let all sorts of items and products into Canada. We will welcome them with open arms, even if companies close. That is what we are doing. We are lax. We are doing absolutely nothing.

While other countries have a certain number of criteria, we are acting like a second class country. To Canadians, it is not important that we protect ourselves. It is much more important to protect others. We are going to let others profit at our expense, like good Canadians.

And on it goes. What is happening in my region today? Productions Ranger is restructuring. The story is in today's paper. The Ranger family has had to close five sewing plants, four they operated in Beauce, the riding of the former Minister of Industry, coincidentally, and one in Montreal, where 200 jobs have been cut.

Company representative Yvon Ranger said this:

We can compete against companies in Quebec or Canada, but we cannot compete against China. The major store chains buy almost nothing from Canada now. Everything is made in China.

This happened today. Five more plants have closed. Why? Because we are not doing anything. We are not doing anything because we do not have five criteria for analyzing another country's market economy. There is nothing complicated about this. It is not hard to have five criteria. But they still do not understand anything. I wish someone would explain to me why we cannot adopt these rules when other countries have adopted them.

Once again, the Bloc Québécois is looking for the support of all the members of this House to help the manufacturing sector. However, I believe that the Bloc Québécois and the NDP will be the only parties to support manufacturers. We are going to listen again to the Liberals ask the Conservatives to help the manufacturing sector.

This will be the second chance we have given them. The first chance we gave them was when we introduced a motion two weeks ago to save the manufacturing sector. But they stayed seated when it came time to vote.

We want to save the manufacturing sector. It would not cost a thing—not one dollar. We do not even need royal assent. We do not need anything. The only thing we need is votes to truly save the manufacturing sector in Quebec and Canada. Nonetheless, if people do not want to save it, then we will just have our simple little criteria that we can do nothing with.

In addition to doing nothing, we are told that the Canadian International Trade Tribunal is going fix everything. I said this earlier and I will have to say it again. Ottawa has never given its approval to any ruling by the Canadian International Trade Tribunal. Never. Now they would have us believe that this tribunal is going to fix everything. It is the Minister of Finance who decides whether or not the Canadian International Trade Tribunal ruling will be applied. Give me a break.

Let us provide the people who control border services with the tools to investigate properly. This is currently not possible.

Do hon. members know what Canada's criterion is? I will tell them. The agency uses just one criterion in every individual case of dumping. Canada determines whether China should be considered a market economy based on the following—and there is just one—criterion: domestic prices in a country are substantially determined by the government of that country and there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market.

That is our criterion. As such, in the recent dumping case, the agency determined every time that the Chinese government was not setting the prices. Of course not, it was the companies that set the prices, but they are subsidized.

What is our criterion? Did the government set the price? If not, these companies can import their products here. That is why the other countries have five criteria. It is not hard to figure out. When these five criteria are met, there is no dumping.

In closing, this bill could provide the Canada Border Services Agency with the necessary tools for determining whether emerging countries are practising dumping. Our businesses would be better protected instead of having to abide by inadequate investigations that are unable to protect them from dumping.

Time is of the essence. Some 68,000 jobs have already been lost in Quebec since the Conservatives came into power. As I was saying earlier, and I will say it again, this bill presents the same criteria used by the European Union and the United States.

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

Mr. Speaker, I rise today to speak to Bill C-411. I will begin by saying that we, the NDP members of the House, will be supporting the bill when it comes to a vote.

My community of Hamilton has long been one of the central manufacturing areas for all of Canada. For generations, men and women from my riding of Hamilton East—Stoney Creek have filled the plants of Hamilton, working hard to keep Hamilton's industrial engine turning. Lately, far too many of those hard-working Canadians have been put out of work. It is not just a Hamilton trend, but that trend plays across every province of Canada in all core manufacturing areas, with the greatest damage happening in Quebec, Ontario and B.C.

Clearly, the manufacturing sector must not be ignored any longer. Measures such as those contained in Bill C-411 are needed now to help prevent the further dumping of cheap foreign goods into Canada and the loss of manufacturing jobs that will absolutely follow.

As well, it is vitally important to the well-being of our country that Canadians start to buy Canadian. Cross-border shopping feels like an adventure to some, but I would ask Canadians to pause and take a moment to take into account the effect it has on their economy and their neighbours' livelihoods.

Not all is lost, though, because these days I am hearing more and more constituents of Hamilton East—Stoney Creek talk about buying Canadian to save Canadian jobs. Sadly, this has not begun to happen because of the leadership of the Conservative government. No, it is mainly as a result of a growing understanding of the impact that cross-border shopping has been having on our economy.

As well, everyone who is watching the media will know that the fear of toxins coming into North America imported from other countries, particularly from China, has begun to spur a buy Canadian attitude, so in a roundabout way, the common sense of Canadians is beginning to take hold and they are fighting back. We could use more of their common sense in this place. Then the members just might stop performing for the cameras and start performing for Canadians.

One point I want to be clear on, which will come as no surprise to government members, is that the NDP looks at the marketplace much differently than other political parties do. For instance, we do not believe health care should be a part of the open market, or we will wind up like the U.S. spending double per capita on health care than we do now in Canada and getting worse results.

On the other hand, we also believe that there are areas that need to be protected by the public sector. There is a role as well for the private sector to play here too. We believe that Canada must have market based definitions to protect Canadian jobs from foreign dumping.

The steel industry in Hamilton is a case in which the steel companies are very much at the mercy of foreign companies which dump their excess inferior steel into our market, undercutting our very best steel producers.

Going back to the broader manufacturing crisis, an example of the failings of both the Liberal and Conservative governments over the past five years is how they stood by and watched over 50,000 textile and clothing jobs simply disappear. After listening to the Conservatives during this particular debate and others when they so glibly shout out “a promise made, a promise kept”, today that rings hollow in the face of the deepening crisis and job loss in the manufacturing sector.

The record shows that the Parliamentary Secretary to the Minister of International Trade while in opposition said:

A Conservative government would stand up for Canadian workers and work proactively through international trade policies to ensure Canada competes on a level playing field.

Fine words, but the Conservatives simply have not got the job done on this file.

Today we have literally thousands of workers from Hamilton's manufacturing plants waiting for their federal government to do something, anything, to protect their jobs. The only standing up for Canadian workers that the current government has done to date, and the last government for that matter, is to stand up and wave goodbye to the jobs.

If I am starting to sound a little angry, it is because I am. In point of fact, Hamilton lost 11,000 jobs just in the last year. Between 2002 and 2007, close to 300,000 manufacturing jobs have been lost across the country. Then people wonder why poverty is on the rise. That is 300,000 breadwinners who have gone from well paying jobs to where?

I will wait for it, because of all its best lines about growth and the McJobs that the government will claim to have created with its policies. If we look around, older workers, and so many in manufacturing are older workers, get retrained and then they are handed a spatula and turned loose.

Canadian families are struggling. They have to do more and more with so much less money. The value of their earnings has dropped significantly and they have watched their buying power lose ground since 1989. Remember 1989, that was the year of the free trade agreement. It was free all right. It freed many Canadians of their jobs.

For close to 20 years, I have watched my friends and my neighbours lose their jobs, lose their homes and lose hope while they waited for the real intervention from their federal government to protect them. They cannot wait any longer. The government has a responsibility to act now. Stop the spin, stop the BS and put together a real and comprehensive manufacturing strategy, a strategy devoid of partisanship. Come together with business and labour and the best economic strategists in the country and do it now.

[Navdeep Bains, Liberal, Mississauga—Brampton South, ON]

Mr. Speaker, I rise to speak to Bill C-411, An Act to amend the Special Import Measures Act (domestic prices). The summary of the bill states:

This enactment sets out the conditions required for deeming whether domestic prices in a country are substantially determined by the government of that country and there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market.

I understand the concerns and issues, and I understand the spirit of the bill. It essentially targets two specific areas. One is dumping practices, which I will talk about, and the other is the pressure on our domestic market. I would say that the manufacturing, forestry, and textile sectors would be the relevant sectors that feel competition from imports, especially when it comes to our dumping practices.

Dumping is an anti-competitive practice that undermines domestic production. Dumping is the sale of a product for export at less than its normal value.

Artificial price reduction is illegal under the World Trade Organization rules because it harms producers in the export market. This strategy also harms exporters of similar products in third countries because they are unable to compete with artificially cheap exports from the dumping country.

If Canada can show that a foreign exporter is dumping products on its market and that these imports could harm Canadian producers, it is entitled to impose anti-dumping measures, such as charging an import duty to raise the price of a certain product to better reflect its actual value in accordance with WTO law.

As I indicated, that is definitely a legitimate concern and something that we need to address. I will allude to some of the concerns I have about this bill specifically around dumping practices. There are other concerns, as I mentioned earlier on, in the manufacturing sector and the forestry sector.

The manufacturing sector alone represents 18% of economic activity in Canada and its contribution to wealth creation is even greater. Since December 2002 until November, statistics indicate that over 210,000 jobs have been lost in manufacturing alone. This is enormous pressure on our manufacturing sector and it needs to be addressed.

What bothers me profoundly is that the current government is aggressively pursuing trade negotiations with the South Koreans and is putting in place a trade deal that would effectively further compound job losses in the manufacturing sector. I cannot understand why the government would pursue such an initiative. It wants to, in effect, create jobs in lower value-added areas that pay less and have less benefits. We would lose our high value-added Canadian jobs. This really concerns me.

There are other issues with respect to South Korea regarding non-tariff barriers that need to be addressed in that trade agreement that have not been addressed thus far by the minister. We have not had proper debate or discussion on that. We are working thoroughly in committee to address these concerns and hopefully that will shed some light on these important issues.

Most important, this is about families. When a person loses a job, it compromises his or her family's position. It is a loss of income. It also has a direct impact on the community. This has to be addressed as well. Not only have we lost those jobs but we are fundamentally shifting the landscape of our country with respect to the economic outlook going forward.

The other sector that is obviously under a tremendous amount of pressure is the forestry sector. Not too long ago the government signed a flawed deal, one that is referred to as the softwood sell-out, a title which I think is appropriate. This deal has questioned our sovereignty when it comes to forestry policies. By signing this deal we left $1 billion on the table, a substantial amount of money. It was a broken promise by the government. The government committed to collect the full amount of the tariffs, but it only collected 80¢ to the dollar, leaving $1 billion on the table. The government threw all our WTO and NAFTA rulings right out the door to settle for a deal that puts on quotas, and charges higher tariff rates to our industry.

Every day in the business section of the newspapers we read about forestry companies closing, mills closing and people losing jobs. This is not simply a matter of jobs. It affects families and communities. It has a ripple effect across our country and our economy. Not only is there concern about particular job loss, but many of these jobs, specifically if we consider the auto sector, have seven to eight spinoff jobs that are lost as well because they are directly correlated with that initial job.

There are thousands of jobs being lost in manufacturing and forestry. I can understand the intent of this private member's bill is to make sure that our economy avoids dumping practices and also avoids the unfair pressure on our manufacturing sector, the forestry sector and the textile sector and other important key industries in our economy.

I indicated before that I do have some reservations and concerns about this particular bill. The bill seeks to codify the conditions used to determine if an export monopoly exists in a given country. It does this by outlining five conditions which, if any of them were not met, would automatically result in a country being deemed to have an export monopoly.

This bill is redundant and seeks to tell the president of the Canada Border Services Agency how to do his job. The president of the CBSA is the one who currently makes this determination.

In my opinion, the categories are broad and could conceivably result in almost any country being designated as having an export monopoly. This includes the United States and the European Union which the CBSA already relies on to determine “normal market practices”. This again impairs the ability of the CBSA and the Canadian International Trade Tribunal to do their jobs.

These are legitimate concerns that our party has. The concerns that this bill wants to address can be dealt with through a variety of mechanisms, including the existing trade agreements, as well as trade tribunals. These issues are better addressed during trade negotiations.

The Liberal Party has always advocated for trade agreements which seek a fair balance, free and fair trade. We have done so and have demonstrated this in our discussions on the South Korea free trade negotiations.

The Liberal Party is a party of free trade. We have a long history of promoting free and fair trade. If we look at our trade negotiations with South Korea, our concern generally has revolved around market access. We want to make sure that Canadian products have a level playing field when being sold in South Korea. We do not want South Korean products to come into our market and our companies and our hard-working Canadians have difficulty selling our products into the South Korean market. This is a legitimate concern that we have. This is the concern that is being addressed.

As I said in my remarks, that there were some concerns that we had around Bill C-411. I have addressed our concerns about the bill. I will again remind the members who are listening that we have reservations and concerns.

We have said that the bill seeks to codify the conditions used to determine if any export monopoly exists in a given country. It does this by outlining five conditions that if were not met would automatically result in a country being deemed to have an export monopoly.

Our party has expressed its concerns about this bill. We understand the spirit and the intent of the bill. We understand the pressures that are currently being felt in our economy from dumping practices. We have alluded to and explained the process around the dumping practices. There is a system in place to address this.

We feel that this bill is too simple. It does not have the wording and the mechanism in place to properly address the concerns that have been raised by some members.

As I have said before, the Liberal Party understands the concerns. We feel that those concerns can be addressed in trade agreements and through trade tribunals. That is something that the Liberal Party has supported as a party of free and fair trade. We look forward to further discussions on this bill.

The House resumed from October 18 consideration of the motion that Bill C-411, An Act to amend the Special Import Measures Act (domestic prices), be read the second time and referred to a committee.

[Robert Vincent, Bloc, Shefford, QC]

Thank you, Mr. Chairman.

You said earlier that political parties should work together. We worked for a full year with all players in the manufacturing sector in order to develop a plan with 22 recommendations—right here in this report.

The parliamentary secretary referred earlier to a list of measures taken. However, out of the 22 recommendations proposed by the sector, only one has been implemented, and only half way at that.

You talk about partisanship. We are indeed partisan. We behave in a partisan fashion, obviously. However, we are here to help your sector, the manufacturing industry, and to implement these 22 recommendations. This is what we want to do. If this is partisanship, we are indeed partisans, but of your sector.

We want to give another chance to this government and to these political parties through a new bill. I am giving you notice. It is Bill C-411 which is at second reading stage.

We often hear manufacturers say that there is dumping of imports from China, that our markets are inundated by an avalanche of goods and that they are unable to compete.

This bill will ensure that imports from China will be subjected to five evaluation criteria. These are the same five criteria used by the European Union and the United States. Since these two jurisdictions find these five criteria useful, Canada should adopt them also. We should use the same five evaluation criteria regardless of the country of origin. Presently we have only one and we are not even able to determine if there is a market economy in China or in other countries. We do not have enough criteria.

Are you hearing from people in your sector that imports from China are in direct conflict with products of your manufacturing industry?

Bill C-411

[Diane Bourgeois, Bloc, Terrebonne—Blainville, QC]

Mr. Speaker, tomorrow will be a critical day for businesses. Indeed, this will be the second hour of debate on Bill C-411, which I introduced in this House, on March 2.

This legislation is very important, because it provides, at last, anti-dumping measures that are in compliance with those recognized internationally, and that will allow businesses to protect themselves against the flood of subsidized imports, particularly from so-called “emerging” economies.

All the parties will have the opportunity to support businesses by voting in favour of a better imports control system. The Bloc Québécois feels that it is urgent to put in place means to help our businesses, which must deal with a strong dollar and face unfair trade practices.

Tomorrow, we will see which federalist parties defend, like the Bloc Québécois, jobs in Quebec.

Budget and Economic Statement Implementation Act, 2007

[Guy André, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, the rising Canadian dollar and competition from Asia is having an impact on our manufacturing industry. Next week, we will debate Bill C-411. I therefore invite the Liberals to vote in favour of this bill, so it may reach second reading in the House of Commons.

Bill C-411 would establish new criteria to better protect our businesses from competition from Asia. It defines five criteria that would allow customs officers to better protect Canadian and Quebec businesses from Asian competition. I would be surprised to see the Conservative government vote in favour of this bill, because it prefers completely open markets and it has no concerns. It wants a wide open market.

We find it surprising that supply management is still around under this government. It is not in this government's philosophy. It wants free trade for free trade.

The Standing Committee on International Trade has no statistics that would tell it, for example, if it would be advantageous for Quebec businesses to do business under a free trade agreement between Canada and Korea. What are the advantages of such an agreement for the Government of Quebec and the rest of Canada? This is the case in all sectors. More in-depth studies really need to be conducted.

Once again, I invite Liberal members to vote in favour of Bill C-411, which will protect—

Opposition Motion—Manufacturing and Forestry

[Guy André, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, I am pleased to speak today on a matter that is of great importance for Quebec and for my riding of Berthier—Maskinongé. I refer to the crises being experienced in all regions of Quebec in the forestry and manufacturing sectors, as well as the precarious situation in which thousands of workers have been thrust as a result.

The motion we introduced today calls upon the Conservative government to establish a series of measures to help the manufacturing and forestry sectors hard hit by the rising dollar and increased competition from new emerging countries, which are, as we know, capable of very low-cost mass production.

Our motion proposes concrete measures aimed at supporting businesses, such as loans to update production facilities, heavy investments, or tax measures to support innovation, research and development.

The Bloc Québécois also calls for a review of the trade laws to better protect our companies against unfair competition, dumping in particular, by bringing Canadian legislation more in line with that of other developed countries.

This is, moreover, what the Bloc Québécois is also proposing in its Bill C-411, soon to be debated in the House.

We are also calling upon the government to provide better financial support to the workers unfortunately affected by this crisis in the manufacturing sector. As a number of my colleagues have already pointed out today, this motion by the hon. member for Trois-Rivières has become necessary because this government has demonstrated, in its recent throne speech and its economic statement, its indifference to the difficult situation of all the men and women working in the manufacturing and forest industries and also the communities dependent on those industries.

In both cases, the Conservatives have demonstrated once again their total disdain for the lot of these thousands of workers who have been so greatly affected. This attitude appears all the more disdainful when we realize that the federal government has huge financial means with which to provide them with assistance. One need only think of the surplus it has amassed.

I am, however, not really surprised by the attitude of this government, which is being true to form. Once again, the Conservatives are choosing to do nothing to help the manufacturing and forestry sectors when they are in such crying need of help.

One must, however, acknowledge its consistency. When this government does decide to act, it tries to help its beloved petroleum industry based in western Canada, by reducing taxes. These companies, with their already huge profits, will be entitled to another hand up by this Conservative government.

However, tax reductions will be of no help to companies in the forestry and manufacturing sector because they are not turning a profit as a result of the crisis they are experiencing, a crisis brought on mainly by the policies of this laissez-faire government.

When the ministers responsible for the economic development of Quebec and for transportation babble on about how tax cuts will help these vulnerable sectors, they are demonstrating that they are actually unable to defend the interests of Quebeckers. Only the Bloc Québécois defends the interests of Quebec, as shown by this motion today.

Tax cuts benefit those who make profits. That is logical. We do not need lengthy economic studies to understand that when you record a loss, you do not pay taxes. Thus, many of the industries that are in trouble will not benefit from the measures announced by this government.

As pointed out today, Baronet, a furniture manufacturer in Sainte-Marie in Beauce—in the riding of one of our Conservative colleagues—announced last Friday that it was permanently shutting down its operations, resulting in the loss of 150 jobs, after attempting to restructure and get back on track for the past two years.

A Conservative member was elected in this riding. But to no avail.

Did tax cuts help this company? I do not believe so. This company was not turning a profit. I am convinced that the type of assistance we are proposing could have helped this company and its employees. By lowering taxes, the Conservatives have chosen to give their oil friends a generous gift just in time for Christmas. Unfortunately, a great number of Quebec workers will experience hard times this Christmas because of job losses in the forestry and manufacturing sectors. In my riding, and throughout Quebec, people have lost their jobs.

It is rather disappointing to note that this government refuses to help these companies in trouble and the workers that depend on them. I would add that it is especially shocking to note that the Conservative members from Quebec are going along with the irresponsible decisions of this government. It is shocking because the lack of action by the Conservatives is jeopardizing important sectors of the Quebec economy.

Let us look at the jobs lost in Quebec's manufacturing sector alone. Some 135,000 manufacturing jobs have been lost in Quebec—the equivalent of one worker in five—since December 31, 2002, including 65,000 since the Conservatives came to power. This precious government, which currently does not see any economic problems in Quebec or Canada, achieved these results at the economic level. Quebec accounted roughly for half the 275,000 jobs lost in Canada during that period. Quebeckers will remember. While the manufacturing sector represented 17.4% of the jobs in Quebec in 2004, it represented just 15% of the jobs in July 2007.

In my riding of Berthier—Maskinongé, which I have the honour of representing, there is a very significant manufacturing sector and that is the furniture sector. This industry plays an important role in Quebec's economy and has proven in the past to be able to respond to the new challenges of international competition. Now, in light of the new trade reality, this industry needs government support to help adjust. Let us not forget that this furniture industry saw a 22% cut in its labour force. It currently generates roughly 24,000 jobs compared to 25,000 jobs in 2005, 29,000 in 2002, and 30,500 in 2000. This is quite dramatic. We have to do something about this. The government has to take action to help these companies.

I have spoken about this a number of times in this House. In December 2006, I tabled a notice of motion calling on the federal government to implement an aid package to support the furniture industry as it adjusts to the rising Canadian dollar. I also asked for support to help the industry cope with fierce competition from emerging countries, a competition whereby Chinese imports have increased eight-fold, furniture imports six-fold, and bicycle imports five-fold. Unfortunately, the federal government chose not to present any aid package or research support program to help this industry adapt.

We all remember when the Canadian International Trade Tribunal declared that the Quebec bicycle industry was on the brink of being wiped out by Chinese imports. It concluded that the only thing that might limit the impact was the establishment of safeguards. The furniture industry even took an initiative in that regard. However, it backed off knowing that, despite favourable recommendations from the Canadian International Trade Tribunal, the government would not apply them.

For the future of jobs in these sectors and of the communities that depend on them, I ask all members, especially Conservative members from Quebec, who are sensitive to matters involving Quebec, to support the motion of the member for Trois-Rivières.

[Richard Nadeau, Bloc, Gatineau, QC]

Mr. Speaker, I will be sharing my time with the member for Chicoutimi—Le Fjord.

It is my duty to rise today to address the situation in the manufacturing and forestry sectors. In my country, Quebec, these sectors are going through a serious crisis. In my area and in my riding of Gatineau, in the Outaouais region, we can feel their pain.

At the Domtar plant located in Gatineau, in the Outaouais region, there are only 70 active workers remaining to provide electric, steam and sewer services to the neighbouring Kruger plant. At the end of October, 180 out of the 250 Domtar employees were laid off. They were producing coated paper for magazines.

The union and the revitalization committee are continuing to work relentlessly to get this federal government to help the plant keep its machinery operational, so that an eventual buyer can take over and restart production, and thus, give back jobs to the papermakers who were cut loose last month. They are asking that the federal government help that plant as it did the Davie shipbuilding plant in Lauzon, near Quebec City, in the early 2000s, by keeping the machinery up to standard. That was successful over there, and the Davie Shipyard was revitalized. We wish the same for Domtar in Gatineau.

Incidentally, the Minister of Industry will meet later today with union representatives from that plant, namely Gene Hartley and Gérard Carrière, as well as myself. We will try to enlist the support of the current government in our efforts, as the workers from Davie, in Lauzon, did. I cannot imagine the Domtar plant in Gatineau shutting down completely. The 400 employees of the Kruger plant, also in Gatineau, which depends on the three services Domtar continues to provide, might also fall victim to the current crisis in the paper industry.

I think of the Bowater plant, located in my riding. This paper plant employed 1,450 workers in 1991. Today, there are only 425. Last March, 171 papermakers were laid off. As Gaston Carrière, union leader and president of Local 142 of the Communications, Energy and Paperworkers Union of Canada, pointed out, in February 2007, the multinational announced to the employees operating machine No. 3 that the machine would be temporarily idled for 30 days. One week before production was to resume, Bowater announced that machine No. 3 would be idled indefinitely.

At a press conference in June 2007, Mr. Carrière said he saw employees with 25 to 30 years of service in tears. In this case, the Conservative government's program for older workers did not pay a single cent to those individuals. It is a trumped-up program whose criteria are so strict that one would have to live on Saturn to access it.

That is the current state of the manufacturing and forestry crisis. It is extremely difficult for the workers who have been affected, as well as their family and community. The Bloc Québécois would like to play an active role in boosting these industrial sectors. This is why I support the motion put forth by my colleague, the Bloc Québécois' industry critic, the hon. member for Trois-Rivières:

That, in the opinion of the House, the government should immediately establish a series of measures to help the manufacturing and forestry sectors hard hit by the rising dollar and increased competition from new players in the field of low-cost mass production, specifically including a program to support businesses that wish to update their production facilities, a series of investments and tax measures to support research and development in the industry, the re-establishment of an economic diversification program for forestry regions similar to the one that the Conservatives abolished, a review of the trade laws to better protect our companies against unfair competition, and better financial support of workers affected by the crisis in the manufacturing sector.

Like the Standing Committee on Industry, Science and Technology, the Bloc Québécois believes that by taking no action, the Conservative Party is part of the problem, not part of the solution.

Here are some solutions the Bloc Québécois has come up with: support the workers hit by the crisis; create an income support program for older workers, to enable workers aged 55 to 64 who cannot be retrained and who are victims of massive layoffs to bridge the gap between employment insurance and their pension fund; make substantial improvements in the employment insurance program by increasing the accessibility period by five weeks for all regions, regardless of the unemployment rate; raise the benefit rate from 55% to 60% and base the benefit calculation on the best 12 weeks; eliminate the waiting period and reduce the minimum number of insurable hours required to qualify for benefits to 360; create financial tools to encourage companies to invest and modernize, such as a program of loans and loan guarantees to help companies modernize. These loans, which would be made available to companies at the market rate for financially healthy companies, would be especially useful to companies in financial difficulty that cannot easily borrow on private markets or have to pay a risk premium, which adds to their interest charges.

Introducing this program would mean lower interest rates for companies that are investing. While the higher dollar should let companies renew their production equipment at a low cost, they simply do not have the ready cash to invest.

As well, companies need better tax support for research, development and innovation. The government needs to expand the types of eligible expenses by including the costs of obtaining patents or the costs of training employees who are working on innovative projects.

The Research and Development Tax Credit must be made refundable so that businesses will benefit from it even though they are at the development stage and do not make any profit.

A program must be established to provide support for the production of energy and ethanol fuels using forest waste. Besides contributing to the reduction of greenhouse gases, such a program would allow forest-dependent businesses to have additional revenue coming from the sale of energy and to spend less for petroleum fuel.

Fixed greenhouse gas reduction targets must quickly be set in order for a carbon credit exchange market to be established. I would like to point out that aluminum smelters and forest-dependent businesses have made important efforts to reduce their greenhouse gas emissions.

Let us also think about modernizing the trade legislation to better protect businesses against unfair competition. The Canadian antidumping legislation goes back to the Cold War era and is completely outdated in the present context, particularly as we face the competition from China. It is urgent to get the Canadian trade legislation up to par with other industrialized countries, especially the United States and the European Union countries. The member for Terrebonne—Blainville has in fact introduced Bill C-411 for the benefit of all Quebecers and Canadians.

That is what the Bloc Québécois is proposing. It is proposing solutions to major problems. All that is missing now is the political will. On our side, we have the will. We raise these issues and we manage to meet with citizens suffering from crisis such as the one we are facing now, in the forestry and manufacturing sectors among others.

[Serge Cardin, Bloc, Sherbrooke, QC]

Mr. Speaker, I have a question for the member, who is a new member of the Standing Committee on International Trade.

What does he think of the current situation when he is being told that 130,000 manufacturing jobs have been lost in Quebec since December 31, 2002 and, of that number, 65,000 have been lost since the Conservatives came to power? He is telling us that his government has done everything possible to help the forestry and manufacturing sectors as a whole.

What concrete policies have been implemented since the Conservatives came to power? I repeat, of the 130,000 lost jobs, 65,000 have been lost since the Conservatives took office.

I would also like to draw to his attention Bill C-411, which was brought forward by my colleague from Terrebonne—Blainville. This bill sets out criteria to identify dumping by countries that send their products to us. It is aimed at helping us adjust to both American and European policies and limit dumping in Quebec and Canada.

I would like to know what the Secretary of State for International Trade intends to do in order to stop the loss of jobs in the manufacturing and forestry sectors.

[Paule Brunelle, Bloc, Trois-Rivières, QC]

moved:

That, in the opinion of the House, the government should immediately establish a series of measures to help the manufacturing and forestry sectors hard hit by the rising dollar and increased competition from new players in the field of low-cost mass production, specifically including a program to support businesses that wish to update their production facilities, a series of investments and tax measures to support research and development in the industry, the re-establishment of an economic diversification program for forestry regions similar to the one that the Conservatives abolished, a review of the trade laws to better protect our companies against unfair competition, and better financial support of workers affected by the crisis in the manufacturing sector.

Mr. Speaker, I will be sharing my time with the hon. member for Shefford.

The crisis affecting the forestry and manufacturing sectors is unprecedented. This is, without question, the worst crisis we have ever experienced. All industry stakeholders agree on this. What we need is action. Everyone agrees that the situation cannot go on like this—everyone except the Conservative government. It alone is happy with a laissez-faire approach. It is content to give tax breaks to the rich western oil and gas companies, while Quebec's manufacturing and forestry sectors are facing a crisis.

Here are some facts: since December 31, 2002, 135,000 manufacturing jobs have been lost in Quebec, which translates into one in five workers. Since the Conservatives came to power in 2006, 65,000 jobs have been lost. Approximately half of the 275,000 jobs lost in Canada during this period were jobs in Quebec. Every one cent increase in the value of the Canadian dollar against the American dollar threatens 19,000 manufacturing jobs.

Let us now turn to the forestry sector. Between May 2002 and April 2005, a total of 10,000 jobs in the sawmills and paper plants were lost. The forestry sector represents nearly 100,000 jobs in 240 towns and villages in Quebec that are today threatened by decline. The urgent need for action is obvious. Every 1¢ increase represents $500 million in lost revenue for the forestry industry in Canada. The Forest Industry Council estimates the loss at $150 million for Quebec. I repeat: the situation is serious. It threatens the industrial base of our economy. That is why the Bloc Québécois is using this opposition day to remind the Conservative government that urgent action is needed.

We know there are problems. The Standing Committee on Industry, Science and Technology spent nearly a year studying various recommendations. It submitted a report in February 2007. After all those hearings, the Standing Committee on Industry, Science and Technology made 22 recommendations. Of those 22 recommendations, the Conservative government agreed only to the accelerated capital cost allowance, which actually helps Alberta’s industries and damages Quebec’s economy. As a result, in proposing this motion, the Bloc wants measures to be taken immediately.

We have solutions. We have proposals. The first proposal for solving this crisis is to implement a program to support businesses that wish to update their production facilities. We have to implement a program of loans and loan guarantees to help businesses modernize. We know that these businesses are in bad financial shape. We know how hard they are finding it to borrow on the markets, which means they have to pay a risk premium, and so the interest they pay goes up. The government has to help these businesses. It must guarantee loans for such businesses, so they will be able to update their production facilities, to modernize, and so be able to get through the current crisis.

We are also proposing a series of investments and tax measures to support research and development. The government has to improve the fiscal support provided for research and development and for innovation in business. It has to expand the types of expenditures that are eligible, for example by including the cost of obtaining patents or the cost of training people to work on innovative projects. The government has to make the research and development tax credit a refundable credit. Certainly there is no point in giving tax cuts to businesses that are not making profits. Giving businesses that invest in research and development refundable tax credits, however, is a large part of the solution.

The federal government has to support research; it must cancel the cuts it has made to the Technology Partnerships Canada and instead increase its funding and reinvigorate all of the leading edge sectors that the Conservatives have abandoned. Leading edge sectors like pharmaceuticals, environmental technologies, new materials and new production technologies have been left to their own devices. Contrary to what the government claims, tax cuts are not the solution to every problem.

Another solution would be to bring back an economic diversification program for the forestry regions similar to the one that the Conservative government cut.

As a member from a resource region myself, I know very well what difficulties a region can face when its main source of economic activity disintegrates. The Bloc is going to pay particular attention, therefore, to the resource regions affected by the current crisis in the forest industry which desperately need to diversify their industrial base in order to deal with the situation.

We should bring back a support program to help diversify the regional economies that have been hit hard by the downturn in the forest industry. There should be tax breaks for companies that operate in resource regions. Among other things, we should encourage companies to help skilled workers find employment in the regions. There should be a program to support the production of energy and ethanol from the forest industry's waste.

The Minister of the Economic Development Agency of Canada for the Regions of Quebec cancelled the special program we used to have specifically for the regions affected by the crisis in the forest industry. That is the government’s laissez-faire policy. There was nothing on this in the Speech from the Throne or in the finance minister’s economic statement. There is an urgent need for action.

Our trade legislation also needs to be revised in order to protect our companies better against unfair competition. Canada’s anti-dumping legislation goes back to the days of the cold war and is completely out of touch with the new realities, especially the emerging economies and China. There is an urgent need to put Canadian trade law on the same footing as the trade law of the other industrialized countries, particularly the United States and the countries of the European Union. That is what the hon. member for Terrebonne—Blainville has proposed in Bill C-411, An Act to amend the Special Import Measures Act (domestic prices). We will return to that later.

The Conservatives have decided not to make use of the trade legislation that makes it possible to provide temporary protection for our companies and gives them time to adjust to the new realities and modernize. We can only dream of a government with some vision that would protect the jobs in our districts.

The final element is financial support for the workers affected by the crisis in manufacturing. Employment in this sector has been devastated. Some 135,000 manufacturing jobs have been lost in Quebec, or the equivalent of one worker in five since December 31, 2002. Quebec has been especially hard hit by the slump, and the arrival of the Conservative government has only made things worse. Since January 2006, about 65,000 manufacturing jobs have been lost.

Given the situation, the government must revisit its position on enhancing the employment insurance program. The Bloc has been proposing for years that real improvements be made to the employment insurance program and, in particular, that the benefit period be increased by five weeks for all regions, no matter what the rate of unemployment. Benefits must be increased from 55% to 60% with the calculation based on the 12 best weeks. The qualifying period should be eliminated and the minimum number of insurable hours needed to qualify should be reduced to 360 hours.

Employment insurance is a right, not a privilege. Workers and companies pay for employment insurance. Together, they establish measures to meet needs in the event of difficult times. We are now in difficult times, but the employment insurance program is nowhere in sight. Furthermore, what are we to make of the lack of a program for older workers who have been the victims of massive layoffs? My colleagues will tackle this later. This is a very important element.

The Bloc Québécois is well rooted in its communities. The Bloc Québécois supports Quebeckers, who are seeking solutions and a resolution to this major crisis for Quebec. Therefore, with this opposition day, we must convince the government that there is an urgent need for action. The future of our communities is at stake.

It is very urgent that action be taken and I urge all my colleagues in this House to vote in favour of this motion.

Opposition Motion--The Economy

[Robert Vincent, Bloc, Shefford, QC]

Mr. Speaker, I would like to thank my colleague for his question. First of all, I would like to tell him that I am sure that the Conservative members and government carefully read the 22 recommendations in the committee's report. However, I think that the Conservative government suffers from Alzheimer's—it does not remember either.

As for emerging countries in Asia or elsewhere, my colleague, the member for Terrebonne—Blainville, introduced Bill C-411, An Act to amend the Special Import Measures Act (domestic prices). The purpose of this bill is to control the dumping of Asian products taking place.

Special Import Measures Act

[Dean Del Mastro, Conservative, Peterborough, ON]

Mr. Speaker, it is my honour to rise to speak to the private member's bill tabled by the member for Terrebonne—Blainville.

Bill C-411 proposes an amendment to section 20 of the Special Import Measures Act, which would set out the conditions required for deeming whether domestic prices in a country are substantially determined by the government of that country and whether there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market.

I will take this opportunity to briefly outline the key aspects of Canada's trade remedy system, of which the Special Import Measures Act, or SIMA, is the principal legal instrument.

SIMA governs the application of anti-dumping and countervailing duties to imports of dumped or subsidized goods that are found to cause injury to domestic producers. In just a quick primer, anti-dumping duties are additional duties designed to offset an exporter's underpricing in an importing country's market, whereas countervailing duties are designed to offset the effects of foreign subsidies on imported products.

Under SIMA, a Canadian industry is entitled to trade remedy protection if it is established, through a formal investigation, that the imports are being dumped or subsidized and that such has caused or threatens to cause injury. In such a case, definitive anti-dumping or countervailing duties are normally levied on all imported goods for a period of five years, with the possibility of an extension if Canada's administrating authorities, the Canada Border Services Agency and the Canadian International Trade Tribunal, determine that there is likely to be a continuation or a recurrence of dumping or subsidization and injury if the duties are removed.

Canada operates in a bifurcated trade remedies system under SIMA. The Canada Border Services Agency is responsible for initiating investigations and making preliminary and final determinations respecting dumping and/or subsidizing or the goods in question. The Canadian International Trade Tribunal, a quasi-judicial body, is responsible for determining whether the dumped or subsidized goods have caused or threatened to cause injury to a Canadian industry.

SIMA implements Canada's rights and obligations under two World Trade Organization agreements: the WTO anti-dumping agreement and the WTO agreement on subsidies and countervailing measures. Key provisions of these agreements include methods for determining the existence of dumping and countervailing subsidies, requirements for the initiation of investigations, obligations respecting the procedural fairness, the duration of orders and transparency in decision-making. In addition, these agreements set out the economic factors to be considered in determining whether injury exists and whether or not such injury is caused by dumping or subsidized imports.

I will take this opportunity to describe another important component of Canada's trade remedy system, safeguard measures.

Canada, like many trading nations, has legislation that allows the application of important safeguard measures to protect domestic producers that have suffered or are threatened by serious injury from increased levels of fairly traded imports. This legislation implements Canada's rights and obligations under the World Trade Organization agreement on safeguards, which establishes the conditions for applying important safeguard measures as well as notification in consultation procedures for safeguard inquiries and measures.

The CITT conducts important safeguard inquiries under the authority of the act. While the CITT may initiate import safeguard inquiries following a complaint by domestic producers, the government may also direct the tribunal to conduct important safeguard inquiries.

In a global safeguard inquiry, the CITT considers the effects of imports from all sources on domestic producers. The object of the inquiry is to determine whether a product is being imported into Canada in such increased quantities and under such conditions as to cause, or threaten to cause, serious injury to domestic producers of like or directly competitive goods.

If the CITT makes an injury determination, the government may apply important safeguard measures in the form of surtaxes under the customs tariff or in the form of quantitative restrictions under the Export and Import Permits Act.

There is another type of safeguard mechanism available to Canadian industry that applies only to goods imported from China. This safeguard came into effect on September 30, 2002, to implement the safeguard provisions of the 2001 protocol on the accession of China to the World Trade Organization.

[Serge Cardin, Bloc, Sherbrooke, QC]

Mr. Speaker, this evening I would like to discuss Bill C-411. I would like to thank my colleague from Terrebonne—Blainville for introducing this bill.

I want to talk about this bill in the context of the throne speech debate, a debate in which the Conservative Party has placed itself on a pedestal and the Liberal Party is bowing down before it.

Despite these peculiar circumstances, we still want to work for Quebec and for Canada; we want to save jobs in Quebec and in Canada.

Nevertheless, I would like to say a few words about the Speech from the Throne. The government claims to be concerned about the crisis, but it has not proposed any real action to revive the industry, nor has it come up with an assistance program for older workers who have been laid off.

I would like to quote part of the Speech from the Throne:

Our government will stand up for Canada’s traditional industries. Key sectors including forestry, fisheries, manufacturing and tourism are facing challenges. Our government has taken action to support workers as these industries adjust to global conditions and will continue to do so in the next session.

Who does the government think it is fooling when it says things like that in the Speech from the Throne? It has done nothing at all about the crisis in the forestry industry. We know exactly what it did.

Even though the courts ruled in Canada's favour with respect to the forestry industry, the Conservatives still paid the United States so that the destruction of the industry could go on.

I would also like to mention the report tabled by the Standing Committee on International Trade several months ago. The report urged the government to lift all barriers to free trade with China even though Quebec imports ten times more goods from China than it exports to China. The report recommends weakening trade laws to make things easier for importers and ignores the fact that producers are currently suffering from fierce and often unfair competition. The government wanted to bring down supply management in agricultural industries even though the system assures farmers of a decent income at no cost to consumers or the government.

With respect to supply management, I will come back to the Speech from the Throne in a future debate in an effort to clarify the government's hidden agenda.

Supply management is very important to Quebec in the manufacturing sector. Manufactured goods account for 60% of its GDP and 85% of its exports. In Alberta, for instance, manufacturing accounts for only 6.7% of GDP. There are obviously some Conservative members who do not want the legislation on special import measures changed in order to help our companies survive under particularly trying circumstances. It is true that things are difficult all over the world, but that is no reason to let people get away with unfair and even illegal practices.

Earlier I heard the Secretary of State say that he was mostly concerned about people who import. He wants to see Canadian importers paying as little as possible, even if the prices are illegal and unfair and a result of dumping by certain emerging countries. All we want is to ensure that the rules of the game are clear, honest and transparent. There are some countries that practice dumping and we should ensure that this practice is clearly identified and steps are taken here to impose countervailing duties on dumping.

The United States accused us of dumping and unfair practices in the case of softwood lumber. We paid duties. But we were found to be in the right. We were not dumping. Unfortunately, though, we are the victims of dumping in Canada and Quebec.

Both the parliamentary secretary and the Liberal Party representative told us that we should just use what already exists and the companies should just go out and defend themselves.

Our hon. colleague from Shefford gave a good example, the Raleigh bicycle case. The International Trade Tribunal found that the company was right and that there was dumping. The industry minister at the time, just before becoming Minister of International Affairs, simply said that it was not very serious, this company and its jobs were not very important, there was no problem and people would just get to pay less for their bicycles. I repeat: these are unfair, illegal practices.

The government is making itself complicit, therefore, in these practices. I even suppose they would be prepared to use such practices themselves, although we would obviously be opposed.

We must recognize that Canada is not alone in this. It seems that the government does not want to play by the same rules as other countries. We need only look to the United States or the European Union, which apply similar criteria. In fact, rather than having 17 goods subject to anti-dumping measures, as Canada does, these countries have three times that number. I do not know how many different products China manufactures, but 17 is not very many.

More stringent criteria are needed to demonstrate a willingness to identify these dumping practices. It goes without saying that jobs must be protected. We are not talking about protecting them for all eternity, but a responsible government—or one that claims to be—must provide these industries with the means to develop, to compete with other countries and to increase their productivity. Thus, policies must be developed while these countervailing duties, these antidumping duties, are in place.

It is obvious that the government does not wish to move in that direction. However, we must stop underestimating the fair value of goods.

As I said earlier, Bill C-411 lists the criteria to be used in determining whether a business is really growing in a market-based economy. We know that China had a command economy for some time. Then China joined the WTO and there was talk of a transitional market. Canada hastened to recognize it as a market-based economy. Now it is letting things slide and is reluctant to establish the criteria that would enable us to identify products that have been dumped on the market.

Instances of commercial dumping can be proven if solid criteria, such as those proposed here, are in place. However, there is something even worse. The Conservative government is way behind on this issue and so are the Liberals. Social dumping scorns human rights and is heedless of the environment, and we have to start thinking about it now. We have a long way to go, and that is what I want to talk to the government about: social dumping.

The government has to start trying to understand that commercial dumping is happening. It has to pass Bill C-411 so that we can have solid criteria that will help businesses in Canada and Quebec.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Mr. Speaker, I am pleased to rise to speak to Bill C-411, introduced by the member for Terrebonne—Blainville. This is a very important bill to deal with what is really going on in the main areas affected.

The currently reality in the manufacturing sector cannot be ignored. Earlier, the Conservatives and the Liberals said that this was not a problem and that they would stay on the same course. To do so would mean ignoring the reality facing workers across Canada.

The NDP will be supporting this bill because we understand that there is a manufacturing crisis going on in this country right now.

I would like to preface my comments in English by quoting somebody who spoke in the House in regard to this very issue of dumping cheap imports and the loss of Canadian jobs that result. I will read it verbatim:

A Conservative government would stand up for Canadian workers and work proactively through international trade policies to ensure Canada competes on a level playing field.

That was said just before the last election in regard to protecting against the dumping of cheap imports and the loss of Canadian jobs that resulted. Who said that? It was the Parliamentary Secretary to the Minister of International Trade, the same individual who just a few minutes ago stood up in this House and said that we do not need to do this, that we have to review SIMA because it is difficult and complicated. Before the last election he was not saying that. He was saying exactly the contrary. He was saying that there is a crisis in manufacturing jobs, that there is a problem. It is important for the Canadian public to understand what the Conservatives said before the election and what they are saying now. He said, “A Conservative government would stand up for Canadian workers”.

I could not agree more with the comment from the Parliamentary Secretary to the Minister of International Trade except that the new government is acting exactly like the old government. It is doing exactly the same thing as the Liberals did while jobs are hemorrhaging out of this country.

In the textile and clothing industry alone, 50,000 jobs have been lost in the last five years. That is why the Conservatives made that commitment. The situation is no better. In fact, it is worse.

For the Conservatives now to say that it is very complicated, as the Liberals said before, just shows that there is not a whole lot of difference between the Liberal Party and the Conservative Party when it comes to governing. Perhaps that is why so many people, including those in Outremont, Quebec, are looking to the NDP, because we are actually in favour of taking action to protect Canadian jobs.

Fifty thousand jobs in the textile and clothing industry have been lost. I wear proudly my Canadian-made suit. I wonder how many members from the Conservative Party are wearing Canadian-made suits.

Let us look right across the country at the number of jobs that have been lost.

Between 2002 and 2007, nearly 300,000 manufacturing jobs have been lost. That means 300,000 families have lost a breadwinner, and the Conservatives say it is complicated and difficult and they cannot take any action. Those 300,000 families have lost a breadwinner because of the inaction of the Liberals and the inaction of the Conservatives.

We disagree when the government says it cannot take action and stop the dumping of imports. A framework has to be put into place. The government has to take action. A Liberal member said we should not tell government agencies how to do their job. Those agencies are not doing their job and that is the problem. That is why we have lost hundreds of thousands of manufacturing jobs.

What has been the result? Just two weeks ago we saw figures from Statistics Canada. The Parliamentary Secretary to the Minister of International Trade knows these figures very well because I told him. I mentioned them at the international trade committee, not with any effect yet, but I am hoping to convince Conservatives that they cannot just keep doing things the way the Liberals did.

Since 1989, with the loss of those hundreds of thousands of manufacturing jobs, two-thirds of Canadian families, 66% of Canadian families, have actually seen their real incomes go down, not up. They are actually earning less. We have seen overtime go up over one-third. Canadians are working longer hours. We have seen the debt load of the average Canadian family almost double.

Since 1989, since the signing of the Canada-U.S. Free Trade Agreement, middle class families have actually lost one week of salary on average across the country. Lower middle class families have lost two weeks of salary. The poorest of Canadian families have seen their incomes collapse. They have lost six weeks of salary.

Canadian families are struggling more and more with less and less money in their pockets. Their real incomes have fallen for the exact reason that the good quality jobs are being washed away. Jobs are hemorrhaging out of this country and neither the Liberals nor the Conservatives have been willing to do even one thing to take action to address this crucial issue.

We are talking about Quebec, we are talking about Ontario, we are talking about British Columbia and other provinces across the country where this hemorrhaging of good jobs has led to a fall in real incomes for most Canadian families. Why would a government not then say that very clearly we have an income crisis and a job crisis when it comes to quality jobs? People are working part time and in temporary jobs. They are trying to make ends meet that way. We have a prosperity gulf, an income crisis in this country and yet the Conservatives continue to say that we simply cannot do anything to address this issue.

I come back to Bill C-411. Essentially the bill puts into place some additional mechanisms to ensure that we have protection against the dumping of cheap imports. If we look at the criteria, it is quite clear that these are market driven definitions.

The NDP is very clear that there are some areas that should not be in the market at all. We believe in public health care and reinforcing our public health care system. We believe very strongly in that. That is why we have the quality of public health care that we have today in Canada. It is because of Tommy Douglas and because of the work of the NDP. Without the NDP, we would have no public health care in this country, and like the U.S., we would be spending twice as much per capita for a system that would leave millions of Canadians with absolutely no health care protection whatsoever.

We believe there are areas that need to be protected by the public sector, but we also believe that there is a role for the private sector. When there are market driven mechanisms for certain private sector instruments, we support the market. Yet the Conservatives and Liberals are saying that they do not support those market mechanisms, that somehow they cannot provide market based definitions for the dumping of cheap imports.

We have an anomaly here. The NDP is standing up defending the market and Canadian jobs and the Conservatives and Liberals are saying, “No, we cannot have market based definitions to protect Canada against dumping”. They are of one mind. We have seen this with the throne speech. The Conservatives and Liberals sound alike and they think alike. They do the same things and essentially in both cases they are refusing to apply market based mechanisms to ensure that we are protecting Canadian jobs against the dumping that is taking place.

Here is the paradox. We have a manufacturing job crisis. Hundreds of thousands of jobs have been lost. We have an income crisis. Most Canadian families, two-thirds of those that are watching us tonight, have actually seen their real incomes fall since 1989, since the signing of the Canada-U.S. Free Trade Agreement. CanWest Global may disagree, but that is the reality which Statistics Canada tells us about. Most Canadian families have seen their incomes fall and yet the Conservatives and Liberals want to do their favourite action, their favourite remedy, which is to do nothing.

We in this corner of the House in the NDP, in our growing caucus, believe we have to do something and we have to apply these market based mechanisms as defined in Bill C-411 to protect Canadian jobs, Canadian workers and Canadian communities. That is why we are supporting this legislation.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, I am pleased to participate in the debate on Bill C-411, An Act to amend the Special Import Measures Act (domestic prices), which is commonly referred to as SIMA.

The mover of the bill raised some very important questions with which parliamentarians must deal with from time to time. To give some indication of that, the implications to Quebec have been very serious in some areas, particularly, as she mentioned, textiles, garments, furniture, bicycles and forestry and the tens of thousands of jobs being lost as a consequence of activity with regard to the importation of goods and the competition.

She talked very well about the whole concept of dumping, which is an illegal activity where a country will actually export goods to Canada at a price that is less than its own production costs, which obviously puts our own producers at a significant disadvantage.

Clearly that kind of activity could be extremely damaging to Canada if we did not have rules, regulations and legislation to guide us in determining whether that kind of activity exists. We do in fact have it and the Special Import Measures Act is the instrument.

The particular section which the member wants to deal with, and I think it is important simply for the information of members and those who are watching, is section 20(1) in the Special Import Measures Act.

Let me just review a couple of things and members will see how this is a very complicated area. It states:

Where goods sold to an importer in Canada are shipped directly to Canada

(a) from a prescribed country where, in the opinion of the President--

--and “the President” refers to the president of the Canada Border Services Agency--:

--domestic prices are substantially determined by the government of that country and there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market, or

Therefore, as a principle, are we having dumping at a price lower than production would be an example.

Also, it covers coming:

(b) from any other country where, in the opinion of the President,

(i) the government of that country has a monopoly or substantial monopoly in its export trade, and

(ii) domestic prices are substantially determined by the government of that country and there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market,

Those are the principles that must guide the president of CBSA.

I asked for some information about the specifics.

I should elaborate on the Special Import Measures Act. SIMA provides for the rules and the procedures for anti-dumping and countervailing duty actions under Canadian domestic law. The act is designed to provide protection to Canadian producers who are being harmed or injured by dumping or subsidizing goods imported into Canada. The member has raised a number of examples affecting Quebec industries.

I should also mention that I had the same situation in my own riding where back in 2004 there was an investigation with regard to the importation of bicycles from China which were hurting the bicycle industry. We have a thriving bicycle industry in my area.

The SIMA is administered by the Canada Border Services Agency and the Canadian International Trade Tribunal. The Canada Border Services Agency conducts investigations into dumping and subsidies and implements duties on dumped or some subsidized goods. That is its job.

The CITT, the Canadian International Trade Tribunal, conducts inquiries on the harm to Canadian businesses and industries from dumping and subsidies on imported goods.

The investigations are initiated after a formal complaint by a Canadian producer or group of producers. Inquiries are initiated after a formal complaint by a Canadian producer or group of producers and the recommendation comes from the president of the Canada Border Services Agency.

The determination of dumping or subsidies is based on a baseline price for similar goods. The baseline is called “normal value” and that is defined in some detail in the Special Import Measures Act. It is used by both the CBSA and the CITT during their investigations and inquiries. SIMA contains extensive rules for determining normal value, which are found in sections 15 to 23.1 and sections 29 to 30 of the act.

Bill C-411, introduced by the member to amend the Special Import Measures Act, changes the rules for determining normal value where an export monopoly exists in the exporting country for the good. Specifically, the bill deems foreign countries to have an export monopoly if certain criteria are not met. This bill changes the criteria and is proposing certain conditions that in fact change the definition of normal value.

The bill states in clause 2 that the lack of any of the factors listed will result in the country being deemed to be an export monopoly. This amendment would prevent these countries from being used as a reference for determining normal value and would allow the CBSA or the CITT to utilize the formula in paragraph 20(1)(c) for determining normal value.

I could probably put on the record some of the other details, but suffice it to say that this is not a simple matter, as members can see. We are not talking about a linear industry. We are not talking about just one sector of the economy. We are talking about the vast trade relationship that we have with countries around the world. Canada is a very active trader.

Let me simply summarize by saying that the bill seeks to codify conditions used to determine if an export monopoly exists in a given country. It does this by outlining five conditions which if they were not met would automatically result in a country being deemed to be an export monopoly.

This bill in fact is not necessary. I know the member has heard this before. The bill the member has put forward is redundant because it seeks to tell the president of the Canada Border Services Agency how to do his job. The president of the CBSA is the one who currently makes these determinations under the existing legislation called SIMA.

The categories are broad and could conceivably result in almost any country being designated as having an export monopoly. This includes the United States and the European Union, which the CBSA already relies on to determine normal value and normal market prices. This again impairs the ability of the CBSA and the Canadian International Trade Tribunal to do their jobs.

The legislation clearly lays out their authorities to protect the interests of businesses, but it is up to the businesses and groups of producers to make their case to have the prescribed investigation and inquiries made to determine under the legislation whether or not there is a matter of dumping to be addressed.

The concerns that the bill purports to address can already be addressed through a variety of mechanisms, including existing trade agreements and in trade tribunals. These issues are better addressed during trade negotiations.

Therefore, the Liberal Party is not going to be able to support this bill. We have always advocated that trade agreements are the way to seek a fair balance. We understand the importance of real free trade, which is why we are advocating that the government ensure that the proposed South Korea free trade deal effectively eliminate non-tariff and regulatory barriers that keep Canadian manufacturers, specifically in the automotive sector, from having open market access.

Although we will not be supporting the bill, I want to congratulate the member for bringing forward to the House yet another important matter in regard to which it is the responsibility of parliamentarians to inform themselves about and to assure their constituents and their businesses that there are rules in place and that we will respond where there is an investigation or inquiry that identifies areas where there is anti-dumping activity that hurts Canadian business.

[Ted Menzies, Conservative, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I thank the House for the opportunity to comment on the private member's bill tabled by the member for Terrebonne—Blainville calling on the government to amend the Special Import Measures Act.

The bill proposes an amendment to section 20 of the Special Import Measures Act. The amendment would set out the conditions required for deeming whether domestic prices in a country are substantially determined by the government of that country and whether there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market.

The Special Import Measures Act, or SIMA, is Canada's principal legal instrument that governs the application of anti-dumping and countervailing duties to imports of dumped or subsidized goods that are found to cause injury to domestic producers.

Under SIMA, a Canadian industry is entitled to trade remedy protection if it is established through a formal investigation that the imports are being dumped or subsidized and that the dumping or subsidizing has caused or threatens to cause injury to that industry.

In such a case, definitive anti-dumping or countervailing duties are normally levied on all imported subject goods for a period of five years, with the possibility of an extension if Canada's administrating authorities, those being the Canada Border Services Agency and the Canadian International Trade Tribunal, determine that there is likely to be a continuation or a recurrence of dumping or subsidization and injury if the duties are removed.

SIMA implements Canada's rights and obligations under two WTO agreements: the anti-dumping agreement and an agreement on subsidies and countervailing measures.

Key provisions of these agreements include methods for determining the existence of dumping and countervailable subsidies, requirements for the initiation of investigations, obligations respecting procedural fairness, the duration of orders and the transparency in the decision making.

In addition, these agreements set out the economic factors to be considered in determining whether injury exists and whether or not such injury is caused by dumped or subsidized imports.

As originally drafted in 1984, SIMA represents a balance of interests between those parties requiring protection from injuriously dumped or subsidized imports and those requiring secure access to imports to ensure profitability for their economic activities.

The importance of this balance between imports and production concerns continues to be relevant as the dependence of Canadian manufacturers on imported inputs has increased substantially since 1984.

Today, imported inputs make up 34% of the content of goods manufactured in Canada.

When SIMA was reviewed by the subcommittees of the Standing Committee on Finance and the Standing Committee on Foreign Affairs and International Trade in 1996, the subcommittees' conclusion was that the basic circumstances that motivated Canada to establish SIMA continued to exist; that is to say, the law provides basic protection to Canadian producers while limiting unnecessary collateral damage to downstream users of the products in question.

During the 1996 review of SIMA, a large number of interested parties representing a wide cross-section of the Canadian economy appeared before the subcommittees to present their views. The witnesses commented on whether the legislation continued to adequately serve Canada's national economic interests, including industries that benefit from trade remedy protection and industry associations that must import goods as a normal course of business.

Following the completion of this review, Canadian industries also took advantage of the opportunity to make their views on these issues known to the government in the context of the Doha round of trade negotiations at the WTO.

As part of the extensive consultation process related to the WTO, the government received 23 submissions from industry and provincial governments that provided input for developing Canada's position on the negotiations, which aim to clarify and improve disciplines related to the WTO anti-dumping and subsidy agreements.

The government takes the consultation process very seriously an regularly updates industry on the status of negotiations. Extensive consultations are critical for developing and maintaining an effective multilateral negotiating position and are equally important in the consideration of unilateral changes to Canada's domestic trade laws.

In fact, the government has recently received recommendations from two parliamentary standing committees that call for the government to conduct a review of Canada's trade remedy system. The first recommendation came in the February 2007 report of the Standing Committee on Industry, Science and Technology entitled “Manufacturing: Moving Forward--Rising to the Challenge”.

Two of the recommendations were trade policy related, one of which recommended that the government conduct an internal review of Canadian anti-dumping countervail and safeguard policies, practices and their applications to ensure that Canada's trade remedy laws and practices remain current and effective.

This review would also include comparisons with other WTO members such as the EU and the U.S. This recommendation was based on the standing committee's observation that the growing economies of countries such as China and India represent a challenge for Canadian producers to both their domestic and American export markets. As well, the standing committee noted the concern expressed by some industries regarding an apparent divergence between Canadian trade law and its application, and it believed more information was required. This led to the recommendation for a review of Canada's trade remedy system.

Following this report came an April 2007 report of the Standing Committee on International Trade entitled “Ten Steps to a Better Trade Policy”. Among the recommendations in the report was a call for the government to immediately review its trade remedy system to ensure that critically valued imports, needed as inputs by companies who subsequently export products out of the country, are not unnecessarily blocked.

The standing committee was told that Canada's trade remedy system needs a different mindset, that is not to assume that all imports from China are bad because for some manufacturers such imports are critical. In fact, one witness noted that, “it’s the only way they’re going to be in the game.”

The government intends to table responses to these recommendations shortly. It is interesting that these standing committees made identical recommendations within two months of each other, namely that the government conduct a review of Canada's trade remedy system. However, these recommendations were made for quite different reasons.

The industry committee recommends a review to ensure that Canada's trade remedy system remains effective to deal with dumped or subsidized imports. The international trade committee recommends a review to ensure that Canadian manufacturers have stable and predictable access to global supply chains.

Although these two standing committees had opposing views on the role and impact of Canada's trade remedy system on Canadian manufacturers, they made identical recommendations. Because they agree that the government must consider the trade remedy system as a whole and to take into account the view of all stakeholders before considering changes to the system, the government supports the view of the standing committees that all stakeholders must have an opportunity to put forth their views on the legislation as a whole.

SIMA has been amended several times to reflect changes in international agreements and to implement the recommendations of the 1996 parliamentary review. However, there has never been an amendment to a single provision of the legislation without broader consideration being taken into account.

Bill C-411 would have us take a piecemeal approach to the Special Import Measures Act that would be contrary to ensuring this law reflects a proper balance of interests.

[Raymond Gravel, Bloc, Repentigny, QC]

Mr. Speaker, I want to congratulate my colleague from Terrebonne—Blainville for introducing a bill that is especially important to many manufacturing companies in the riding of Shefford, including Raleigh, which makes bicycles.

Raleigh spent hundreds of thousands of dollars to defend its dumping complaint before the Canadian International Trade Tribunal, which finally recommended a surtax on bicycle imports from China. Yet, as with other CITT decisions, the Minister of Finance did not budge.

What could Bill C-411 do for a company like Raleigh?

[Diane Bourgeois, Bloc, Terrebonne—Blainville, QC]

moved that Bill C-411, An Act to amend the Special Import Measures Act (domestic prices), be read the second time and referred to a committee.

Mr. Speaker, Bill C-411, which I am introducing today at second reading, sets out criteria that we hope will make it easier to detect dumping and will provide better protection for Canadian businesses.

Competition in the business environment has changed enormously in recent years, and the manufacturing sector has been hard hit. The rise in value of the dollar is an aggravating factor that has dealt a serious blow to Quebec's economy. However, we believe that increasing competition from Asia is the main factor in the distress of many of our companies.

Between 2001 and 2006, Chinese imports to Canada nearly tripled, going from $12 billion to $32 billion. What is more, Canada now has a $26 billion trade deficit with China. In Quebec, traditional industries are suffering the most from Asian competition right now. Chinese textile and clothing imports have risen eightfold, furniture imports have increased sixfold and bicycle imports have grown fivefold. Needless to say, our traditional industries are suffering and job losses are multiplying.

The government is doing nothing to help these companies, and the manufacturing sector is being devastated. Between 2003 and 2006, 100,000 manufacturing jobs disappeared in Quebec. In 2006 alone, the first year this government was in power, 35,000 jobs were lost in Quebec's manufacturing sector. And 2007 is shaping up to be even worse. Quebec had 29,000 fewer manufacturing jobs at the end of February than it had at the beginning of January this year.

The more traditional sectors were the hardest hit, including the clothing industry, which has lost almost half of its workers since 2000. The textile industry has lost a quarter of its employees since 2000. The furniture industry has also had a 22% drop in its workforce, and the forest industry has lost 10,000 jobs since April 2005 alone.

Currently, the industry is being left to fend for itself. This is the policy of this Conservative government, at a time when the industry is experiencing terrible difficulties.

Programs for the textile and clothing industries were cut from the budget in 2006. The main federal support program for research and development called Technology Partnerships Canada came to an end on December 31. The Conservatives claimed it was because of administrative problems, even though analyses confirmed that all these programs were very effective.

As for trade laws, the Conservatives decided not to implement the laws that would temporarily protect our companies and give them time to adapt to the new environment and to modernize.

As the members of the Standing Committee on Industry unanimously agreed in February 2007, trade laws must genuinely protect businesses from unfair competition, which is called dumping.

The Bloc Québécois has decided to propose a series of measures for Quebec industries that are facing the biggest challenges: the furniture, textile, clothing, forest and aerospace industries, the marine industry and high-tech industries in general.

I will backtrack a little in order to explain what dumping means.

Dumping is an unfair and illegal trade practice by which a company exports a product at a price that is lower than the normal production cost or lower than the price at which it is sold within the exporting country. When a business adopts practices of this nature, it must expect some countries to impose anti-dumping duties in order to counter such unfair practices.

How do we measure dumping? Generally, to determine if a foreign company is practising dumping, we must look at the price at which the product is sold within its own market. If the product's selling price is lower here, this constitutes dumping. We must be careful: this practice is only valuable if the fair price can really be identified. We can also ask the company to turn over its books and total all its costs in order to determine of the sale price reflects the production cost. Once again, this way of proceeding is only valuable if the production costs are accurate. They can be altered by government intervention in production costs. For example, an intervention might involve the government paying for the electricity needed to manufacture the product.

When the bank is government owned and gives a loan at a prime rate, or if the currency is artificially devalued—we need only think of the Chinese yuan, which is 40% lower than its real, normal value, specifically to help Chinese companies export their products—or when the books do not account for all the normal costs because of inadequate accounting practices, in these instances it is pointless to look at their accounting books.

Also, when various government practices play a role in altering the data, we will not necessarily be able to calculate the fair price. These practices could involve devaluing the dollar, indirect assistance or assistance to the business' subcontractors. We must look further. This is what bill C-411 proposes.

The United States and the European Union do more than just look to see whether the Chinese government is directly involved in setting prices on products, which is what the Government of Canada does. The U.S. and the EU have issued a series of criteria to assess whether the practices of the Chinese government falsify the costs and the prices. In particular, they look at the value of the currency. As I was saying earlier, it is widely known that the yuan is deliberately devalued to artificially lower the prices of Chinese exports. The regulations in China are also considered, but they know full well that these are not always on par with universally recognized regulations. This practice allows the Chinese to hide data. The U.S. and the EU go much further and do more investigating. The production cost and the input cost to manufacture a product can be artificially lowered if the supplier of the raw materials or parts is a government corporation. Thus, the EU and the U.S. evaluate the suppliers. While Canada imposes anti-dumping tax on only 17 Chinese products, the United States taxes 53. While the European Union taxes 49 products, Canada carries on with its 17 little Chinese products only and these products enter freely here in Canada.

Bill C-411 is based on legislation in effect in the United States and in Europe and lays out criteria to be taken into account to assess whether there is dumping, which we hope will better protect Quebec and Canada's businesses from the illegal practice of dumping.

[Diane Bourgeois, Bloc, Terrebonne—Blainville, QC]

moved for leave to introduce C-411, An Act to amend the Special Import Measures Act (domestic prices).

Mr. Speaker, it is my privilege to table a bill to amend the Special Import Measures Act.

Canadian trade legislation is outdated, and it does not adequately protect manufacturing companies when they are victims of unfair competition. The proposed legislation will set out the conditions required for deeming whether domestic prices in a country are substantially determined by the government of that country and there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market.

We know that among the prohibited activities is dumping, or selling a product for less than its fair value. The passing of this bill will help set out what exactly is dumping, and how to calculate it.

By passing this bill, the Canadian parliament will update trade legislation, give a helping hand to companies suffering from the explosion of imports from emerging economies, help limit the damage caused by the laissez-faire attitude of the government, which has abandoned our manufacturing industry, and surely help save a number of jobs.

(Motions deemed adopted, bill read the first time and printed)