Madam Speaker, Canada has launched a joint study with the European Commission to reduce trade barriers and facilitate trade. This study is one of the provisions of the joint Canada-European Union action plan signed by the Prime Minister in December 1996.
By May 1998 we hope to have first, a list of barriers identified in terms of their economic significance for Canada and the European Union; second, options for reducing or eliminating these barriers, including trilateral agreements with the United States and multilateral agreements; and third, an identification of the best means of addressing the most significant barriers.
Canada has identified the European Union's phytosanitary regulations affecting Canadian lumber exports as a barrier for the purposes of this study. Canada has been making strong representations in an effort to resolve this issue bilaterally and is now considering its options under the World Trade Organization.
As a WTO member which is bound by the agreement on sanitary and phytosanitary measures, Canada recognizes the rights of all members to adopt measures necessary to protect plant health. Canada and other members, like the European Union, regulate the importation of plant material in their territories in order to prevent the introduction and spread of pests or disease that could threaten the health of their forests.
Sanitary and phytosanitary measures by their very nature can result in some restrictions on trade. This is currently the case with respect to Canadian exports of certain plant products to the European Union.
With respect to live trees or forestry products with bark and needles attached, like Christmas trees, the European Union has been concerned for many years with a number of pests that can be found on coniferous trees. Canadian plant health officials have similar concerns with respect to imports from the European Union. In addition, the European Union is regulating the importation of green coniferous lumber from Canada and other countries to prevent the entry of pinewood nematode, a pest which the European Union fears can cause damage to its forests.
The Canadian government, with the co-operation of the Canadian industry, has conducted various surveys and studies to analyse the risk of transmission of pinewood nematode to the forests of Europe. The Canadian government has also worked with the Canadian industry on control measures to mitigate the risk of transmission of pinewood nematode from Canadian shipments of green lumber.
To date, however, European Union plant officials are not prepared to provide access for Canadian green coniferous lumber or other untreated forestry products.
The new WTO agreement on sanitary and phytosanitary measures builds on previous trade rules to restrict the use of unjustified and unnecessary sanitary and phytosanitary measures while maintaining the right of every country to provide the level of protection it deems appropriate.
The government will continue to work with the industry and the provinces to ensure that Canada's rights and obligations under the agreement on sanitary and phytosanitary measures are protected along with the interests of the Canadian forest industry.