International Trade Committee on Nov. 27th, 2024

[Greg Stewart]

We are at the same whims of the North American lumber industry at large, and the last year has not been a profitable year for very many, if any, lumber manufacturers.

[Chandra Arya, Liberal, Nepean, ON]

I know you also represent the B.C. trade body. What percentage of your members closed down their operations in the last year?

[Greg Stewart]

That's a difficult question to answer. I know there have been a number of closures in the last year. I would suggest that there have been at least four members that would have had significant closures.

[Chandra Arya, Liberal, Nepean, ON]

Okay.

Earlier, you did mention that you listened to the testimony of the first panel, where the Ontario Forest Industries Association's chief executive officer mentioned that there's a long history between the United States and Canada when it comes to softwood lumber. In fact, the year he mentioned was surprising to me—1794. So, this is not a surprise, and even the current one has been going on since 2017. This is the fifth round, if I'm not wrong, of the dispute.

Given the track record of this industry's relations with the United States, which is obviously a big, juicy market, why is it that the B.C. industry is not looking toward exports to other Pacific countries? Ontario industry members, as mentioned by their trade group, said that because Ontario is landlocked, it's not easy for them to transport to other markets elsewhere. However, with B.C. being on the coast, why is it that your members have not tapped into the market elsewhere in the world?

[Greg Stewart]

It's a good question.

I wouldn't say that we haven't tapped into other areas of the world. I think there are certain challenges that come with the various species that we harvest and manufacture, as well as the installed capacity that we have within our mills, to produce certain products for certain regions.

When I was talking earlier, I was talking specifically about our mills, where we look to the—

[Chandra Arya, Liberal, Nepean, ON]

Mr. Stewart, I'm sorry to interrupt. I do know that you have been exporting pellets to Europe. That's a good thing. You are sending value-added products. You mentioned that the exports are being done, but they are so paltry compared to the total volume of sales that go into the United States. The numbers I have are these: only about $200 million to Japan and $100 million to China, compared to the overall size of the industry.

Quebec industries, if I am not wrong, are better in value-added products. Again, I am quite surprised as to why B.C. industry is not adding value-added products.

[Greg Stewart]

I wouldn't agree with the characterization that we're not adding value-added products. There are different circumstances in B.C. from those in Quebec. We are currently developing value-added—

[Chandra Arya, Liberal, Nepean, ON]

I am sorry to interrupt. I apologize; I have limited time.

What do you propose? You know that the government has been actively helping the softwood lumber industry in this dispute with the United States. What is it that you are looking for in the deal? What do you propose?

[Greg Stewart]

In the final settlement agreement, I would suggest that we need to address the concerns of the U.S. while at the same time ensuring that we have a good agreement that works for Canada at large. There are regional differences, and we'll have to consider those.

I think we do have to consider value-added products. The last deal did not adequately consider those in terms of the effort that goes into those products. This deal must make sure that the duties reflect the additional work that's put into the products north of the border.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We have four minutes remaining. If you'd like to take one minute each, would that work? Okay, it's just one minute.

Go ahead, Mr. Savard-Tremblay.

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

I am going to ask two questions, each 30 seconds long.

Mr. Samray, since the Canada—United States—Mexico Agreement is going to be revised, would this not be the time to tighten up the dispute settlement process by setting a maximum time limit of a year for the process, as was the original idea? Pardon my French, but that would avoid the entire bunfight around appointing arbitrators.

You can answer my question with a simple yes or no.

[Jean-François Samray]

Yes, absolutely.

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

Okay.

I don't know how much time I have left to ask my second question, but I think you will be able to give more detail this time when you answer.

[The Chair, Liberal, Judy Sgro]

I think that was your one question in one minute.

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

No, I asked it in 30 seconds.

[The Chair, Liberal, Judy Sgro]

I think you can ask them off-line.

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

Okay, fine.

We will talk about it later, Mr. Samray.

[The Chair, Liberal, Judy Sgro]

Mr. Desjarlais, please, you have one minute.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Thank you very much, Madam Chair.

I've changed my question because, Mr. Samray, you said something that was very shocking to me. I reviewed some of the transcript just now from a question you answered earlier. You said that forest fires cost your organization more than the tariffs. Is that what you said?

[Jean-François Samray]

I said that. Being totally stopped during summer, not being able to go in the forest for about two months and, after that, having to rush to harvest the wood that is of lower quality in order to transform this wood instead of cutting green trees has a really great impact on the industry. Yes, that is what I am saying.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Thank you very much for that answer.

[The Chair, Liberal, Judy Sgro]

We can have a question from Mr. Williams, and then a question from Mr. Sidhu, of one minute each.

[Ryan Williams, Conservative, Bay of Quinte, ON]

Thank you, Mr. Stewart.

For B.C. in the last decade, how many jobs have been lost?

The second question I have is, if a deal was made where we axed the carbon tax forever, would that help your industry become more competitive with the Americans'?

[Greg Stewart]

If I had to project this over the last decade, I think there have probably been about 40,000 jobs lost—and I hope I got that number right—for a variety of reasons.

As far as forestry is concerned, I think forestry is Canada's best-kept secret in terms of helping address climate change and doing so in a proactive way to provide products. I think there is a real opportunity with wood products to combat climate change and meet our climate needs.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Mr. Arya, you have one minute.