Mr. Chairman, the Leader of the Opposition says I incite them. They are easily incited.
I listened very carefully to the hon. member's comments. With all due respect, I just do not think he is correct in the statements that he made. Those statements need to be challenged by the government and they will be challenged.
This is the most serious trade dispute that exists bilaterally between our two nations. Hundreds of thousands of jobs are directly at stake. Some 300 Canadian communities from coast to coast to coast, including B.C., but not just in B.C., have 50% at least of their livelihood depending on the softwood lumber industry.
Of some 100 million jobs in all regions of Canada, including central Canada and B.C. and the Atlantic, one is six jobs of them indirectly or directly related to the softwood lumber industry.
What has the government done? It has repeatedly and consistently challenged the false accusations of the American industry and the American government that have been made about our softwood lumber industry. This is the fourth time that we face this challenge now from the United States. In the three previous cases these allegations were not substantiated.
The reality is this. This is an issue of U.S. protectionism and the fact that the Americans are very unhappy with the Canadian industry having gained a 34% market share in the United States. That is really what this is all about.
Through the efforts of the Canadian government, led by the Minister for International Trade, with the close co-operation of the Canadian embassy in Washington, we have for many months now been building alliances in the United States, exactly as the Leader of the Opposition suggests, belatedly. Action has been going on for a long time to recruit some 150 members of the U.S. congress who support our position to inform and work with major companies like Home Depot . They support our position to recruit consumer groups that understand that they could be paying up to $4,000 more on a new home. Why? To simply protect less competitive U.S. lumber operations.
Those efforts did not just come out of thin air. The Government of Canada has taken the lead in helping make sure that groundwork was done. The Leader of the Opposition put forward some good suggestions. It is just that they are late and they have already been going on for some time.
We have a good consensus of the industry in Canada, the provinces and territories, that what we want is free trade in softwood lumber.
As the minister pointed out, there was no sort of a willy-nilly decision that we just woke up and the softwood lumber agreement is over. There was a conscious decision after very wide consultations that this agreement would be allowed to run out. Why? Because what we desire is free trade in softwood lumber.
If the United States had not taken the action that it has taken, we would be in a situation where softwood lumber prevails. Unfortunately, the Americans again for the fourth time in 20 years have taken this protectionist action. Of course we have been and will continue to challenge that at every opportunity.
The Prime Minister has repeatedly raised this issue with President Bush, as I said. The Minister for International Trade has repeatedly raised the issue with Secretary Evans and with trade representative Zoellick. We are challenging these allegations of the United States at the WTO. We have requested a panel where five specific challenges will be launched about the American allegations.
We know that the United States congress is split on the issue. There are a few protectionist senators who are leading the charge against this and are now being mischievous, some sending letters to Canadian parliamentarians suggesting that we now self-impose a tax that will help them out of a situation that they know they will lose. They will lose this trade action again.
What is the unfortunate reality in this? My colleague, the Minister for International Trade, I and our government knows this very well. Unfortunately, this kind of a decision does not come really quickly. Unfortunately, there is pain to be borne unfairly by Canadian companies, producers and workers because the United States is not living up to what it claims to be, which is free traders.
Discussions went on in Toronto last week and are going on in Washington this week. Progress is being made to find the root causes of this so we can come to a solution outside of litigation. As long as those efforts are bearing fruit then they ought to proceed.
At the same time we are moving on several other fronts, whether it be ministers and government leaders talking to American leaders or whether it be Canadian officials taking the necessary steps for the WTO challenges.
The reality is that Canada is right in this issue. Our case has stood up every time it has been challenged and it will stand up again.
I applaud the Minister for International Trade for the wide consultation. A number of members on the other side of the House have indicated that there has been very wide consultation. That has continued and will continue. As long as there is a consensus in the industry for us to continue down this path then the government will continue to vigorously defend our interests in softwood lumber.
The solution really is free trade. It is not regionalism. It is not the unfortunate comments that I heard from the Leader of the Opposition to play B.C. against Ontario or Quebec. Those are not the sentiments that we need at this time. We need a united effort. The Canadian people will accept nothing else.