International Trade Committee on June 4th, 2021

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

You can't give us concrete information as to when you're actually having meetings and how you're addressing this issue with your counterparts. We don't have dates. We don't know how you're standing up for Canadians in the forestry sector. It's a little disconcerting that you can't say what the dates are when you're meeting and what future dates you have coming up.

Can you tell us how you're addressing this? What future dates have you scheduled to address this situation?

[Mary Ng, Liberal, Markham—Thornhill, ON]

I would say to the honourable member that this file is a top priority for me and for our government. We have been standing up for the forestry sector that employs so many people across this country against these unjustified tariffs.

We have also been doing other work to help the industry look into and pursue diversification into other markets, which I am very happy to also speak about.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Minister, you can understand how concerning this is. You have given us no information.

[The Chair, Liberal, Judy Sgro]

Thank you, Minister.

I'm sorry, Mrs. Gray. Your time is up.

We will move on to Mr. Dhaliwal for six minutes, please.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Thank you, Madam Chair.

Madam Chair, I want to thank the Honourable Minister Ng. Any time we ask her to come to the committee, she is always accessible. Any time I have gone to her, whether it is on the B.C. lumber issues or any other trade issues, she has always been very professional and very accessible for help.

Madam Minister, you mentioned about sustainability and environmental consciousness in your speech today. I will give you a perfect example.

Here in British Columbia, in Port Alberni, I met with Kamal Sanghera of San Group, who announced this week $100 million of investment in Port Alberni. It's not only the investment, but in fact they are reusing the sawdust and the shavings to create green energy. They're also using the waste from all these operations to build pallets.

Minister, could you please share how Canadian companies such as this, in this sector, can diversify? How can the government help them diversify locally and diversify their exports so that they are not reliant on only one market?

[Mary Ng, Liberal, Markham—Thornhill, ON]

I want to thank the honourable member for that very important question.

As my honourable colleague knows, our government is committed to tackling climate change. We know that is the biggest long-term threat of our generation. In doing so, we can create great opportunities around green growth. That is so important during this time in the economic recovery.

I also want to say that Canada's forestry sector is one of the most sustainable in the world. I think it bears repeating that the economy and the environment do indeed go hand in hand.

Our government is committed to supporting the softwood lumber industry by promoting its reputation around the world. I know that our softwood industry takes incredible pride in being a global leader in sustainable forestry management and environmentally responsible forestry.

The honourable member talks about how there are additional opportunities for the sector. What they are doing is incredible. They are innovating and looking to diversify not only their products but to diversify opportunities in international markets. Very many of those companies that are diversifying are also small and medium-sized businesses. Whether it is biofuels or wood-based bioproducts going into other various industries—whether it be automotive, chemical, food or cosmetics—this is what we are seeing of our forestry sector.

Our government has invested in the trade diversification strategy here. We are helping our Canadian businesses pursue opportunities in the global marketplace. We are able to say that we're the one G7 country that has a free trade agreement with every other G7 country. We have 1.5 billion customers in a global marketplace and we're helping our businesses connect.

Let me just give you one concluding statistic here. Our trade commissioner service, which I think is absolutely terrific, has provided over 705 instances of referrals or connections to help 260 forestry clients make those exact connections in what they are doing here, helping them diversify and grow and then getting them into international markets.

In fact, I have a long list of businesses that are doing just that. It's terrific that there are lots of them in B.C.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Thank you, Minister.

Minister, the U.S. National Association of Home Builders has expressed concerns regarding the lumber dispute. It has urged its government to reach a long-term resolution.

Do you believe that U.S. stakeholders that support free trade with Canada in softwood lumber products can contribute to resolving the current issues?

[Mary Ng, Liberal, Markham—Thornhill, ON]

My honourable colleague is absolutely right. We need to continually and vigorously defend the interests of the Canadian softwood lumber industry. The tariffs that are imposed, or that could be imposed through the signalling of this second administrative review, will have a direct effect on American consumers and on home builders.

The approach that we are taking is a team Canada one. We're working with Canadian industries and with our provinces and territories so that we can work with the United States and get to a resolution of this issue that will benefit job creation on both sides of the border.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Madam Minister, in the absence of a functioning WTO appellate body, to what extent are the rights of Canadian softwood lumber exporters protected under the mechanisms of CUSMA?

[Mary Ng, Liberal, Markham—Thornhill, ON]

That's a really important question. This issue is precisely why it was so important that we negotiated chapter 10 of CUSMA. It replaces the former chapter 19. To have a strong dispute settlement mechanism in our trade agreement is absolutely essential. We heard that very loudly from industry, particularly the softwood lumber industry.

I want to remind colleagues that we have consistently defended the softwood lumber industry and we have been awarded victories, which demonstrates that Canada is in compliance with international trade rules. We will continue to do that at these panels through CUSMA.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Minister.

We'll now go to Monsieur Savard-Tremblay for six minutes, please.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Thank you, Madam Chair.

Madam Chair, before I get to my questions for the minister, I want to say how shameful it is that the meeting started before I arrived. I was voting. Committees usually suspend when votes are being held. What's more, we are always told that we have to stay until all the votes have been tallied. I just want that on the record.

Good afternoon, Minister. Thank you for being here today.

According to transcripts of the calls between the Prime Minister of Canada and the President of the United States, the Prime Minister did not raise the issue of softwood lumber or try to resolve the ongoing dispute, once and for all.

Are the two leaders expected to discuss the issue? Has a conversation been scheduled?

[Mary Ng, Liberal, Markham—Thornhill, ON]

Thank you for your question.

Softwood lumber is an important issue for Canada. The sector is of course a really important employer that employs hundreds of thousands of Canadians.

We are certainly disappointed with the findings of the second administrative review. At every opportunity, I raise with the United States the issue of softwood lumber. Indeed, when I was in the meeting with the Prime Minister and the President, I had the opportunity to raise softwood lumber.

It is important, and we will continue to stand up for the industry and for their workers and continue to do this important work.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

I will ask the question again.

Do the Canadian Prime Minister and the U.S. President have a meeting scheduled to discuss the softwood lumber dispute, among other issues?

[Mary Ng, Liberal, Markham—Thornhill, ON]

As I have said, we will absolutely be working as team Canada. I am certainly on the Prime Minister's team and on team Canada. I'd like the member to know that this issue is very important to our government, and we will be sure to continue to raise it with our American partners.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Since I still don't have an answer to my question and will probably not get one, I'll switch gears.

A conversation needs to happen, so what are you waiting for? You put out a statement on May 21, but what actions do you have planned in the wake of the U.S.'s announcement? What is your strategy to bring President Biden to the negotiating table?

[Mary Ng, Liberal, Markham—Thornhill, ON]

We have been consistently working on the softwood lumber issue in the interests of the Canadian industry. We are continuing to defend their interests and those of their workers, whether through litigation, through chapter 19 of NAFTA and chapter 10 of CUSMA or before the WTO, and we will continue that work.

We are also ensuring that the industry is supported. Well before the pandemic, and even as tariffs were levied on our sector, we were working with the sector. We're making investments so that they can diversify their products and can look at additional markets in which to pursue opportunities and customers. We have done this. We have successfully attracted foreign direct investment to invest in some of our sawmills across the country.

This work really takes a broad approach. It's about helping the sector, investing in the sector and defending our interests against these tariffs.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

I gather that the plan is to diversify partners and that you are taking actions accordingly. Nevertheless, do you not have a strategy to bring the U.S. President to the negotiating table, reopen talks and end the dispute?

[Mary Ng, Liberal, Markham—Thornhill, ON]

We have consistently said that we are ready for a discussion at any time. We are very interested in finding a resolution to this issue. We believe it would be good for the Canadian industry but also for the Americans as well. We are ready for those discussions, absolutely. That is what we will continue to do. We will vigorously do this. We will vigorously defend the interests of the Canadian softwood lumber and forestry sector.

At the same time, we want to help those small and medium-sized businesses who are very keen on innovating and creating opportunities and products that tackle climate change as well, and getting them the support they need so that they can look at diversifying and growing their companies into the international marketplace.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

The chair is signalling that I'm almost out of time.

[The Chair, Liberal, Judy Sgro]

You have 40 seconds.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

All right, Madam Chair.

Why not have the two leaders discuss the issue, Minister?

[Mary Ng, Liberal, Markham—Thornhill, ON]

If I can reflect on the free trade commission meeting that I had, we actually talked about the importance of labour and the importance of inclusive growth as we build back from the pandemic and as we look at the environment. There's a range of issues that are important. The President and the Prime Minister also have a Canada-U.S. road map for this economic recovery. We will work with the United States on a range of issues. I want to assure you that I will keep working hard to defend the interests of the Canadian forestry sector and softwood lumber.

[The Chair, Liberal, Judy Sgro]

Thank you, Minister.

Mr. MacGregor, you have six minutes, please.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Thank you, Chair.

Thank you, Minister, for appearing before the committee.

I represent a riding that has a very long history with forestry. I took some time before today's meeting to consult with the local steelworkers union, which has many employees in the local mills in my riding. Coastal forestry products are a pretty specialized subgroup. We have a pretty diversified market, but we certainly are affected by what's going on in the United States as well.

I want to put my question in the context of the astronomical lumber prices we're seeing right now. Are those to some extent helping us weather this current storm with the U.S.?