Good afternoon. I want to begin by thanking the committee for the opportunity to speak to this very important study. I am chair of the United Steelworkers' Wood Council. The council was created as a result of the 2004 merger between the USW and my former union, the Industrial Wood and Allied Workers of Canada. The USW now represents more than 18,000 forestry workers, 32% of whom work in the industry's secondary supply chain.
As a matter of fact, Structurlam in British Columbia, which was mentioned by the gentleman from FPInnovations, is our operation. I didn't see the pictures of the bridge at the presentation, but I was at a presentation they gave earlier, and the bridge in that picture was made by our members in Quebec. We're most known or thought about for our loggers or our mill workers, but we are everywhere.
Maintaining a strong forest industry is not only in the interest of our workers or our 600 forest-dependent communities but is crucial to the health of Canada's economy. Our union has launched a campaign aimed at support for workers and communities. It's called “The Working Forest”, and it can be found at workingforest.ca. That was my little commercial.
Last year, the forest industry contributed more than $23 billion—so we're on the right page there—to Canada's GDP. The secondary supply chain employs more than 92,000 people across the country; however, the value-added sector, which includes everything from guitars to the modern CLT construction, has lost more than 43,000 jobs since 2001. Our union believes the natural resources committee must acknowledge this decline and recommend a reversal, through a national forest strategy that recognizes the separate but integrated sectors within the forest industry.
In 2017, events such as the ongoing softwood lumber dispute with the United States, last summer's forest fires in British Columbia, and the mountain pine beetle—all things you've heard about today—have negatively impacted the forest industry and the secondary supply chain. Climate change, resulting in several warm winter seasons in a row, means the mountain pine beetle could continue to have an impact on the boreal forest for another 13 years.
On the trade file, with no softwood lumber agreement in sight, we're weeks away from the final determination of duties by the U.S. Department of Commerce. Since the expiry of that agreement, softwood lumber exports to the United States from the EU have increased. Finland alone has increased its exports to the U.S. by 293%. The unrest and instability this has caused is intolerable, obviously. The Government of Canada must come to a just and fair solution to this crisis.
Canada is of course faced with a protectionist mood not only in the U.S. but globally. With a natural resource that is abundant and renewable, our government's priorities should be to promote jobs and innovation in Canada to build an industry that is competitive and attractive in the global markets.
Corporate behaviour, to speak to some of your previous questions, also has an impact on jobs and communities and on our ability to compete. With no controls to prevent them, Canadian companies with their investments in the U.S. are essentially robbing investment from industry in this country.
A factor in Canada's ability to be competitive in the value-added sector is controlling the export of logs. Log exports have increased dramatically over the last two decades. In a few short years, from 1997 to 2004, the amount of unprocessed exported B.C. timber increased from 200,000 cubic metres to well over 5.5 million cubic metres annually.
Wood that is milled offshore has led directly to mill closures and job loss, and that fibre is not here to do the wonderful innovative product creation we heard about in the last session. The bottom line is that there is no hope for a viable value-added industry in this country if no attempt is made to stop wood from being exported and not being processed in Canada.
That said, our submission does not advocate for a total ban on exports. However, there is ample opportunity to reduce Canada’s exports of unprocessed timber coupled with supports for the retooling and revitalization of our many mills, which will increase the number of Canadian-made wood products available domestically and internationally. If the goal of this study is to recommend measures that will grow the industry, national and provincial strategies are required, strategies that clearly lay out the role for public investment and government policies that both discourage the excessive export of logs and encourage domestic manufacturing. The federal government must take the lead and work with provinces to create the conditions necessary for growth.
As an example, our submission details the need for infrastructure and particularly primary and secondary roads. We are in agreement with the Ontario Forestry Industries Association that the lack of infrastructure is inhibiting the sector's return to full productivity.
Adequate timber harvesting is another issue that must be addressed through a national forest industry strategy. For the secondary supply chain to grow, ensuring a consistent and adequate volume of lumber is imperative. That being said, research and development on wood products for a variety of applications, including construction, industrial products, consumer goods, and much more must continue with funding opportunities and a federal commitment to the use of wood and wood products in procurement.
To conclude, let me repeat that from logging to milling to processing to product development, everything is interrelated and dependent on sound public policy and strategic approaches to securing a future for forestry in Canada. Ours is a clean, green industry that has built Canada from coast to coast to coast.
I urge you to take this opportunity to support our members and our 600 forest-dependent communities by recommending a national strategy for sustainability in forestry and the related secondary supply chains.
Thank you again for this opportunity, and I welcome any questions you may have.