Thank you.
Before I ask my question, there are two key pieces of misinformation I'd like to correct. The first has to do with termination.
This morning we heard that the agreement was in effect for 23 months, and then there was a one-month notice. Then Mr. Julian brought up that it's 18 months. What he didn't bring up is that there is then six months' notice. Industry asked for this change, and it's a good change for industry because it gives them more time to react to the situation that's unfolding.
But what's key here is that in both cases it's 24 months before the agreement is terminated. I bring it up because I think Mr. Julian needs to be more forthright on this matter. When we read 23 months, he made no mention of the one-month notice. In fact, he cut off our ambassador when he was answering that question. When the ambassador answered the question fully, Mr. Julian summarized it and said “18 months”. No, that isn't what the answer was.
So I encourage all of my colleagues when we're talking about important clauses like termination to speak in full sentences. When you say “18 months”, add the six months' notice. And while you're at it, you could also add that there's a 12-month standstill at the end of that 24-month termination part.
The second thing I'd like to clarify is a comment that was made on benchmark prices. A comment was made that at current benchmark prices, industry would be paying more in tariffs than under the current American tariffs. But there are some facts that need to be brought to light. The first is that the U.S. is going to be recalculating this tariff this year, and it's going to be raising it to 14%. Under the new agreement, Canada will collect the money, not the U.S. treasury. It's important to note that. And the tax rates will not be subject to yearly changes.
So again, when we're talking about these important clauses, we need to talk in full sentences so that people have all of the information.
My question I'd like to put to Monsieur Chevrette is this: could you highlight for the committee some of the key benefits to the lumber industry that you see this agreement offering?
Thank you.