Thank you.
As I was saying, as you are aware, on April 27 the Prime Minister addressed the House to announce that Canada and the United States had reached an agreement in principle that will provide the basis for ending the long-standing softwood lumber dispute. The result of discussions with the United States is a seven-year agreement in principle designed to ensure U.S. market access, to protect Canadian market share, and to bring stability to an industry impaired by over 20 years of relentless trade action by U.S. protectionists.
The agreement in principle will provide immediate economic benefit and security to Canada. Provinces have indicated their support. The agreement in principle will see not only the revocation of duties but also the return to Canadian lumber producers of some 80% of the collected deposits--that is, $4 billion U.S. back into the hands of Canadian exporters. This money will significantly benefit these exporters and will help their workers and the communities in which they are located.
The agreement in principle takes account of different operating conditions in Canada by providing provinces and industry with flexibility to respond to their specific circumstances, including the exempting of certain regions of Canada and certain products entirely. For the next seven to nine years, when lumber prices are high, as in our current market situation, no border measure will be imposed--that is, no tax and no quota. When prices are lower, a province can choose the export measure that works best for its industry.
The agreement also includes an innovative mechanism that responds to Canadian industry concerns about the possibility of other lumber-producing countries increasing their exports to the United States at the expense of Canada. The agreement will provide refunds to Canadian exporters in this situation. This is a first in Canada-U.S. lumber talks.
Once the final agreement enters into force, duties will no longer be collected, and the U.S. government will begin the process of refunding duty deposits to importers of record.
The next step involves the detailed work of drafting the legal text and finalizing the agreement. We are working to complete this in the coming weeks. This detailed work involves designing the mechanics of the agreement's key features, such as the disposition of deposits, border measures, the surge mechanism, and other matters. It will also involve passing legislation to implement the border measures, design a quota system, and draft legal text. This work is now under way. We will consult regularly with the provinces and with industry.
From the outset our government has been committed to the best interests of Canada--the provinces, the industry, forest workers, and the families and communities whose livelihoods depend on the forest sector. We have given our lumber companies, their workers, and the communities in which they live a more secure and brighter future because of this agreement.
The agreement in principle will pave the way for a stronger bilateral trade relationship, a relationship upon which so many Canadians depend for their jobs and prosperity. Furthermore, it will set a more positive tone as our countries move forward in collaborating to make North America more competitive and prosperous on a global scale.
Thank you, Mr. Chairman.