Mr. Speaker, the member for Lambton-Middlesex has been quite vigilant in bringing the interests of Canadian agricultural producers to the forefront each time she speaks in the House of Commons. The minister and the government listened very carefully to the concerns she raised.
In answer to the specific question, it is the hope of the government that actions to reach an agreement with the United States were done to put an end to almost 15 years of litigation between Canada and U.S. softwood lumber producers. I know the member is fully aware that although we have remedies under the NAFTA, many times our counterparts in the U.S. seem to become engaged with frivolous disputes which tie up the system for an undue length of time.
This was one of the considerations the Canadian government had to look at when the latest dispute arose. The Canadian industry and provincial governments decided negotiating an acceptable agreement to guarantee security of access to the U.S. market was preferable to the uncertainties and costs of fighting a countervail duty case.
I remind the House that in order to take the softwood lumber dispute to a NAFTA chapter 19 panel the United States would have to first launch a countervailing duty investigation and determine that Canadian lumber exports to the U.S. were being subsidized and conclude that U.S. producers were being injured. Furthermore, if it had so decided, the United States would have imposed the duty on Canadian softwood lumber exports. Such a duty would have had significant negative impacts on the Canadian lumber industry and its employees.
This industry is extremely important to Canada. It employs about 60,000 people across the country. Canadian exporters of softwood lumber to the U.S. reached record levels in 1995 of over $8 billion. This represents approximately 60 per cent of Canadian softwood lumber production. The value of these exports has grown substantially since 1990.
Therefore in striking a deal with the U.S. the agreement is designed to avoid another long, protracted and costly trade battle. The agreement which comes into effect on April 1, 1996 will give Canadian softwood lumber exporters security of market access to the U.S. market for five years.
I also assure the member that this deal should not looked at as a precedent. I do not think it is. The hon. member would find that the Minister for International Trade and the government will, as she said, go to the wall to protect the interests of Canadian supply side manufacturers, as we have the right to do under the GATT agreement.
Softwood lumber was a very special case. I assure the member her concerns and those of the people she represents will be taken into consideration in any future plans that the Government of Canada has with respect to supporting our producers.