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.
Conservative
Bloc
Serge Cardin Bloc Sherbrooke, QC
You told me that there would be six representatives on each side, according to the terms and conditions of the agreement. With regard to composition, you told us that you could not say anything given that it had not been determined.
So if there are no legal or contractual provisions to decide the composition of the committees, who will do so?
Director General, North America Trade Policy Bureau, Department of International Trade
With respect to the industry council, that has already been determined. There are six members.
I think at the end of the day this is a government-to-government agreement; therefore, after consultations with provinces, there will have to be decisions made in terms of representation with respect to provinces in the work of the groups. I think the answer is that we'll be consulting with provinces, but because this is a government-to-government agreement, the ultimate decision would rest with the Government of Canada.
Bloc
Serge Cardin Bloc Sherbrooke, QC
Therefore, it will be up to the federal government to choose Canadian—and Quebec, I hope—representatives.
Director General, North America Trade Policy Bureau, Department of International Trade
Yes. They are responsible for the overall structure and composition of groups. Of course, it has always been contemplated that this would be done in consultation with provinces, and we've already flagged that as well to the provinces. That work is yet to come, but that's the process that has been envisioned to decided those types of issues after the agreement comes into force.
Conservative
The Chair Conservative Leon Benoit
Merci, Monsieur Cardin.
Now we'll go to the Conservatives.
Mr. Cannan, you have seven minutes or so.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
Thank you, Mr. Chairman.
Thank you, Mr. Robertson, for enlightening the committee on this very complex and challenging, but exciting initiative. We have a little bump in the road, but we're looking forward to moving forward in good progress for industry stability and certainty, with agreement and a positive resolution.
Supplementary to Mr. Cardin's question with regard to government-to-government agreement, as concerns this committee's role and responsibility, will we be getting an update on a regular basis, or an annual basis? How will we as a committee be kept informed of the industry progress on this binational council?
Director General, North America Trade Policy Bureau, Department of International Trade
As I said, the structures and reporting elements have yet to be determined, but I will certainly take note of the desire of this committee to be part of the process in terms of updates on the progress being made in the softwood lumber agreement. I can take that back as input into the consideration of the structure that's being prepared.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
For the $50 million, the accountability will be within themselves, then, for the industry, or who will they be accountable to?
Director General, North America Trade Policy Bureau, Department of International Trade
For the industry it's actually $40 million, with $10 million set aside for the dispute settlement. But they will be accountable for the usage of this money, which we anticipate will be used to further develop the overall objectives in the softwood lumber agreement for their work.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
The effective date was three months within the signing of the agreement. We're a little delayed, so are we looking at the end of December or early January for this binational council to be up and running?
Director General, North America Trade Policy Bureau, Department of International Trade
Yes. As you correctly stated, the softwood lumber agreement envisaged that the binational council would be formed within three months of the agreement's coming into force, with recommendations for a number of the issues that I raised earlier—best efforts to be made within 18 months of the composition of the binational council.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
And would the term be concurrent with the agreement—seven to nine years—that the binational council would stay in effect?
Director General, North America Trade Policy Bureau, Department of International Trade
Yes.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
The other exciting portion of this agreement is that there's some cooperation within our partners in industry from both sides of the border working together, this cross-border agreement. Do you find that there is some possibility of positive strengthening of the softwood lumber industry with this agreement, moving forward?
Director General, North America Trade Policy Bureau, Department of International Trade
Yes, I think so. What's more important, so does our industry, and therefore that's why that initiative was taken. So those types of topics are all of mutual interest, and therefore I think it provides a good basis for the work to advance.
Secondly, if there are other issues that the industry on both sides of the border want to raise and pursue under this overall objective, I'm sure that will be undertaken too.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
My colleagues sitting beside me, and Mr. Julian--we're all from B.C., where over 55% of the softwood lumber industry is, and it is very important. From your observations, from working within the industry and through the negotiations, would this council have been possible without the signing of the agreement?
Director General, North America Trade Policy Bureau, Department of International Trade
I don't think so, because if there were not an agreement, we would still be in litigation. It's difficult to see how industries litigating against each other would come under this sort of approach to common objectives across the border.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
That's very encouraging then, as far as the reason industry came aboard is concerned. Instead of something that was forced upon them by the government, was it industry recommending this binational composition, in order to build the bridges that have been deteriorating over the years?
Director General, North America Trade Policy Bureau, Department of International Trade
Yes, I think it's fair to say. As we know, the major softwood producing provinces, as well as the industry, have supported the agreement. Therefore, I think what you're saying bears that out.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
I have one last question. In B.C. we have a couple of really good industry-represented manufacturing associations that have been promoting the use of wood within B.C. I spent that last nine years in local government encouraging communities to use wood in the construction of arenas and multi-purpose facilities. Will there be an opportunity for these existing organizations to present their positions to this binational party?
Director General, North America Trade Policy Bureau, Department of International Trade
With respect to the industry council, which has that objective, I would have thought so, because there have been those activities you mentioned. This is something they can bring to the table to share with their American colleagues, in terms of promoting those types of activities in North America.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
Thank you.
I think my colleague from Kamloops would like to make a comment.
Director General, North America Trade Policy Bureau, Department of International Trade
Chair, if I may, just before the question is put to me—