Evidence of meeting #28 for International Trade in the 39th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was respect.
A recording is available from Parliament.
Director General, North America Trade Policy Bureau, Department of International Trade
—my colleague wants me to make sure it's clear that the 18-month timeframe I discussed earlier for coming up with recommendations is with respect to the export—what we call the exit strategy elements—and not to all the other objectives I've identified. So those relate more to the additional exemptions from the agreement.
Conservative
Conservative
Betty Hinton Conservative Kamloops—Thompson—Cariboo, BC
Good morning, Mr. Robertson.
It's a pleasure to listen to your presentation here today. I think you've gone a long way to clearing up a lot of misinformation that has been floating out there regarding the lumber deal.
I would like you to have the opportunity, if you'd like, to elaborate a little bit on something you mentioned that certainly struck a chord with me. You talked about affordable housing. Could you go into any kind of detail about how this lumber agreement is going to make that possible?
Director General, North America Trade Policy Bureau, Department of International Trade
When we talk about promoting the use of products and hence affordable housing, those are subjects to be taken up by the binational industry council. They have the expertise in this area, and I think there's a mutual interest in developing those approaches and finding out how best to promote affordable housing. These are the types of elements that are going into the industry council.
As well, the affordable housing element is another focus in the meritorious initiatives. The work to be done by the various bodies that have been created in those areas can only help to promote that objective. How specifically those groups will decide to do that is up to them, given that this is the work they have to do, but I think the focus is worthy of attention; indeed, it was deemed so, because it was included in the softwood lumber agreement in terms of objectives that should be looked at in terms of their activity.
Conservative
Betty Hinton Conservative Kamloops—Thompson—Cariboo, BC
I have one further comment in conclusion. Aside from clearing up a lot of misconceptions today.... I live, by the way, in a riding that is very dependent on the lumber industry. Many of the jobs in my riding are tied to some sort of stability. Not only does this agreement bring that long-term stability--seven to nine years--but it also sounds as though there have been some considerations given to the social aspect of things as well.
I was very pleased to hear you answer the question on the social housing part, and I think it's wonderful that we're going to actually have a group of people who are outside of government looking at this and other aspects of the softwood lumber agreement. I see nothing but positives here.
Thank you very much for the information today.
Director General, North America Trade Policy Bureau, Department of International Trade
Thank you.
Conservative
NDP
Peter Julian NDP Burnaby—New Westminster, BC
Thank you, Mr. Chair.
Like Mr. Eyking, I was under the impression that today we could also ask you questions about Bill C-24, and believe me, we have a lot of them. My understanding is that your preparation has been limited to the issue of the binational panel, so if it's not appropriate on Bill C-24, we'll keep our powder dry today and use those questions at another time.
Thank you for coming and thank you for your presentation.
I wanted to review some of the specific issues you raised around the meritorious initiatives. You did state, Mr. Robertson, that we get two observers. They have no vote, so actually they have no real ability to influence things, but they are observers, nonetheless, around the decisions that are made by the Bush administration on the meritorious initiatives. We know that those decisions are being made now. Have those two observers been appointed, and who do they report to?
Director General, North America Trade Policy Bureau, Department of International Trade
There has not been an appointment made yet. As is the case with the six members of the business council, their names will be announced, I think, in the coming days.
The fund is independent of government, so I don't think there will be a formal reporting structure into the government on the initiatives, in terms of a government intervention about uses of that money, because it was meant to be kept independent with the objectives that were outlined in the softwood lumber agreement.
With respect to the reporting function, given the independence from government that the meritorious initiative was meant to achieve, I don't think there'll be a continuing dialogue between government and those two members. I expect there will be annual reports of the work done in the meritorious initiative, and through that means we will all be made aware of what they have been focusing their energy on within each year.
NDP
Peter Julian NDP Burnaby—New Westminster, BC
Are we aware of the American appointments to the meritorious initiatives foundation?
Director General, North America Trade Policy Bureau, Department of International Trade
Not as of yet. I'm not aware. I don't think that has been announced. They are settling on their composition, as are we, but I think that will be announced in the coming days. I'm sorry, I can't give you any more clarity with respect to the timing of the U.S. selection and announcement.
NDP
Peter Julian NDP Burnaby—New Westminster, BC
Thank you.
The two people who would be appointed from Canada are non-voting, so they are essentially observers.
Director General, North America Trade Policy Bureau, Department of International Trade
Yes. They are non-voting, so in terms of exercising the franchise in the decision, they'd be part of the discussions in terms of what might be the approach. But you're quite right.
Director General, North America Trade Policy Bureau, Department of International Trade
That's right.
NDP
Peter Julian NDP Burnaby—New Westminster, BC
Thank you.
Next I'd like to move to the binational industry council. The funds that are available for that council will be under the control of the American administration. Is that not true? Those are Canadian funds that would basically be left in the United States.
Director General, North America Trade Policy Bureau, Department of International Trade
No, I think the binational industry council would be under the control of the 12 industry representatives, six from Canada and six from the United States, in terms of the initiatives that they jointly derive. Government has given them an overall objective focus, and that is in the softwood lumber agreement, as to what their work should be looking at in the first instance, and those are the objectives I mentioned this morning in my opening remarks.
Director General, North America Trade Policy Bureau, Department of International Trade
Yes.
Director General, North America Trade Policy Bureau, Department of International Trade
Yes.
NDP
Peter Julian NDP Burnaby—New Westminster, BC
--and the money itself is under the control of the administration, and then could be, by the administration, provided to the binational industry council. My point is that the money initially will be under the control of the executive in the United States, the Bush administration, and then they would make the decision in terms of allocation.
Director General, North America Trade Policy Bureau, Department of International Trade
I would have to check on that, Mr. Julian, because it might go directly into an escrow account designated for the industry council. I can't confirm with you now whether it goes through the United States government or not. I would, however, flag that the money set aside for the binational industry council is a treaty obligation, so in order for the United States to abide by its obligations under the treaty, it would have to provide that money to the binational industry council. Let me check to see if the money is direct to an escrow account for the council or whether it is to be given to the United States for transfer to the council.
