Thank you so much, Mr. Chair.
Thank you all for the opportunity to appear today and provide you with an update on Canadian softwood lumber.
It is really terrific to be back here at the Standing Committee on Natural Resources. As I said earlier during the sound check, in 2018, I served on this committee as a member of Parliament and took part in a study on the forestry sector. It was clear to me then the importance of the forestry sector to our economy, for our workers and our environment, and that is just as true today.
The forestry sector supports over 200,000 jobs in communities across the country. In 2019, it contributed $23.7 billion to our economy, or 1% of Canada's total GDP.
Today I would like to touch on a few things: the ongoing softwood lumber litigation with the United States, our efforts to create greater opportunities abroad for Canada's softwood lumber and wood product exporters, and the role that this industry is playing in our trade diversification strategy.
Let me begin my appearance today by stating unequivocally that the duties imposed by the United States on Canadian softwood lumber are unwarranted and unfair, and they hurt workers and industry on both sides of the border.
Earlier this week, in Canada's first meeting with President Biden, Prime Minister Trudeau, my ministerial colleagues and our cabinet counterparts in the United States, I raised the issue of softwood lumber duties directly with the president.
I will also be speaking with my American counterpart, the U.S. Trade Representative, directly about this in our first meeting, once she's officially confirmed. The importance of this issue will be front and centre as we work with the new American administration in the months and years ahead.
Canada continues to strongly believe that a negotiated agreement with the U.S. is in both countries' best interests.
Canada continues to strongly believe that a negotiated agreement with the United States is in both countries' best interests.
We are not sitting idly by. We're taking a team Canada approach, working hand in hand with the softwood lumber industry and provincial and territorial partners on all fronts. We have launched a series of challenges against the initial U.S. duties on softwood lumber through both the WTO and the new NAFTA.
Throughout the multiple iterations of this dispute, we have consistently been awarded legal victories that clearly show our softwood industry is in full compliance with trade rules. While we will continue to pursue these legal avenues, considering our successful track record, we believe our U.S. counterparts will once again find that the most effective resolution to this dispute is a negotiated agreement.
I want all of you to know that our government's efforts go far beyond just the WTO to protect Canadian access to the U.S. softwood lumber market. In addition to U.S. softwood duties, the industry was facing other significant challenges, including fibre supply issues due to pine beetle damage and forest fires. When the pandemic struck, like many industries, the sector also saw a number of shutdowns.
Supporting the industry across government is what we had been doing over this last year. Like many other industries, the forestry sector has had to cope with challenges and restrictions. Yet through these challenges it has demonstrated its resilience and its importance for workers, the economy and, indeed, all Canadians.
It has been vital to our supply chains, producing components for essential household products, including PPE that Canadians have relied on throughout the pandemic, like medical gowns and non-medical masks.
It is heartening to know that the Canadian softwood lumber industry has almost fully recovered from the early challenges of COVID-19. Nearly all the 98 sawmills that closed last year as a result of the pandemic have restarted operations, restoring 96% of the more than 12,000 jobs affected.
Just as it stood by Canadians, our government has always stood by the sector, from emergency support measures like the business credit availability program to the softwood lumber action plan, which is an investment of $867 million to support our softwood lumber industry in response to U.S. import duties. This program has strengthened our Canadian forest sector firms, helping grow innovative technologies, boosting diversification and supporting thousands of good jobs from coast to coast to coast.
The swift actions of this government have allowed the forest sector to better weather the challenges they are facing today.
Trade diversification is an important commitment. It's our government's commitment to the forestry industry that goes far beyond the emergency supports I just talked about.
Our government's commitment to the forestry industry goes far beyond emergency supports.
As the Minister of Small Business, Export Promotion and International Trade, I'm determined to ensure that our industry and businesses have the tools they need to scale up and to grow across Canada and around the world.
As we lay the groundwork for an inclusive and sustainable long-term recovery, strengthening trade ties and supporting diversification in forestry and all our sectors will be key to generating clean growth and creating jobs.
Canada is proud to be the only G7 country holding a trade agreement with all other G7 partners. Through these agreements and others around the world, our businesses have preferential access to 1.5 billion customers globally.
Our trade diversification strategy maximizes opportunities for Canadian industry created by strengthening existing trade agreements while pursuing new ones. This strategy has set a goal of increasing Canadian exports by 50% by 2025.
For our industry partners, this means finding new and creative ways for them to forge new relationships and opportunities for growth. Through the trade diversification strategy, our government has invested $290 million over five years to help Canadian businesses export and grow in new markets by strengthening the trade commissioner service and enhancing the support it provides to Canadian exporters, including those in the forestry sector.
This isn't just about diversifying what we trade, but also who we trade with. Diversification and inclusive trade is creating opportunities for our world-class forestry sector to access those global markets while ensuring that all Canadians can benefit from its success.
We understand the reality of the forestry-based businesses, which are actively diversifying production towards innovative products such as biofuels and sustainable packaging made from fibre. This is about strengthening traditional forestry-based products and investing in innovation.
