Mr. Speaker, it is most unfortunate that this government has brought closure to this debate. As we know, there are many members in the House who would like to speak on this matter.
Reform is really the only party that is standing up for working Canadians and for working Canadians who may end up losing their jobs, because we know that Bill C-55 is about putting Canadian jobs at risk.
Previously I had indicated that I would read into the record two letters, one of which was received from the United States Senate. However, there is no time for that, so I will read a couple of paragraphs.
The letter was sent to Charlene Barshefsky, the U.S. trade representative, from the United States Senate and was signed by William Roth, Jr., the chairman, and Senator Daniel Patrick Moynihan, the ranking Democrat.
The letter reads:
The effect of the Canadian government's action is twofold. First, if enacted, Bill C-55 would plainly violate the letter and the spirit of the GATT 1994 and the WTO agreement on dispute settlement. The proposed legislation would put U.S. publishers at a distinct commercial disadvantage—a disadvantage that U.S. publishers had a right to expect would be eliminated by virtue of our WTO rights and the Appellate Body's ruling.
Second, it would undermine what many of us viewed, at the time we considered legislation implementing the Uruguay Round agreements, to be the linchpin of the WTO system. It would be ironic if Canada, which has been a leader in promoting a rules-based international trading system, the creation of the WTO, and the current dispute settlement model, were to undermine the benefits of that system for the United States, Canada and other WTO members by blaming the Appellate Body's ruling in this instance.
I would like to read the last paragraph of a letter sent by Charles Rangel, ranking Democrat, and Bill Archer, chairman of the committee on ways and means of the House of Representatives, to our Canadian ambassador to the United States, Mr. Raymond Chrétien.
The letter reads:
Ambassador Barshefsky and her staff have indicated that if the Government of Canada presses for passage of this bill, the United States will retaliate by withdrawing NAFTA trade concessions. While we hope and expect that this issue can be resolved without resorting to such measures, we are committed to ensuring that U.S. publishers have fair access to the Canadian market, just as Canada's publishers do in the U.S. market. Therefore, we strongly oppose C-55 and will support Ambassador Barshefsky's intention to withdraw trade benefits if the bill is enacted.
Surely the banana case in Europe should be an eye-opener for this government. There is a protectionist mood brewing in Washington these days which makes it difficult for the president to get the fast tracked authority he needs for the next round of WTO negotiations for the free trade agreement of the Americas.
The people of this country should know that the last time tariffs were raised during a deflationary period was in the 1930s, prior to the Great Depression. At that time the Smoot-Hawley Act raised tariffs to over 40% on imported industrial goods, adding to already high agricultural tariffs. One nation after another retaliated by raising their own trade barriers. Under the impact of higher tariffs, competitive devaluation and heavy-handed financial controls throughout the world, the flow of international trade shrank drastically in 1931 and 1932. We all know what happened.
We also learned today that the deputy ministers of Canadian Heritage and International Trade are meeting with their counterparts in Washington to stave off retaliation. Why are the deputy ministers of Finance and Industry not involved?
If the government is really serious about the proposals under discussion it should have sent those officials as well. If the government is serious, the involvement of the departments of Finance and Industry are essential.
As we know, the United States' trade representative has at her disposal a powerful weapon for retaliation. That weapon is section 301 of the U.S. trade act. Under this section, the U.S. trade representative can announce a detailed list of areas for trade retaliation with a 30-day period for comment. She can do this when a trading partner presses forward with what she deems unfair trade practice.
The last paragraph indicates that if Bill C-55 is voted on in this House and passed this upcoming Monday, the U.S. trade representative could announce that list on March 15 and retaliation could take effect no later than April 15, which is just over a month away.
The U.S. trade representative also has options under the Canada-U.S. Free Trade Agreement, the North American Free Trade Agreement, as well as appeal to the World Trade Organization.
Who in this government will be responsible and accountable if trade retaliations do occur, with billions of dollars involved and with tens of thousands of Canadians losing their jobs?