Mr. Speaker, I will be sharing my time with the member for Yukon.
I am pleased to have the opportunity to participate in tonight's debate on softwood lumber. Ensuring an equitable resolution to the softwood lumber dispute is a top priority for the Government of Canada. That resolution must ensure continued access to the U.S. market for Canadian softwood lumber exports, following the expiration of the softwood lumber agreement on March 31.
My constituency of Kitchener Centre does not have an abundant forest industry, but Kitchener does engage in a good deal of business with our southern neighbours. Through a vibrant and innovative technology sector, Kitchener contributes to technology exports, the fastest growing sector of our nation's overall exports. Certainly the high tech sector of Kitchener-Waterloo enriches our community and presents a greater range of opportunities for employment and economic growth.
In addition to providing better jobs and more opportunities for Canadians, trade finances the social system that Canadians cherish, reflecting our values of fairness, inclusion and equality.
Clearly all Canadians in all regions have a stake in our continued trade success. The far-reaching implications of the softwood lumber trade action have an impact on our Canadian economy and our local communities. The decision of the United States department of commerce to impose this additional 12.58% duty on our softwood lumber is punitive and unfair. It has a negative impact on Canadian jobs and on our competitiveness.
Just like the countervailing duties of last August, this decision to impose anti-dumping duties is unfounded. Moreover, the U.S. action is based on protectionism and politics. Canada's more efficient and more modern sawmills are a source of pride to our nation. Accusations of subsidies and dumping are an erroneous attempt to poke holes in Canada's vibrant softwood lumber industry. Just like countervailing duties of last August, this decision to impose anti-dumping duties is simply unfounded.
The Liberal government will continue to challenge U.S. laws and policies at the World Trade Organization. We will also pursue our discussions with the U.S. administration to find a durable, long term solution to this trade dispute. The rights of Canada's softwood lumber industry will be defended. Canada will continue to co-ordinate discussions with the industry and greatly appreciates the collaboration of provinces which are responsible for the management of natural resources.
Given Canada's strength in this industry with 21% of the international forestry market and 34% of the U.S. market, there is consensus among Canadian industry and governments that the move toward free trade is indeed a positive one.
I am confident that the rules based system of international trade will once again dismiss the U.S. claims and grant Canadian lumber industry its rightful access to the U.S. market. The Canadian-U.S. trade relationship has been mutually beneficial. Canada and the United States are each other's largest trading partners, moving about $1.8 billion worth of goods and services across the border each day.
In 2000 Canada exported $360 billion in goods to the United States and imported $268 billion in return. Service exports totalled $33.3 billion during the same period with corresponding imports of $39.4 billion. Fully 86.1% of Canadian merchandise exports are destined for the United States market.
Since the implementation of the free trade agreement in 1989, two-way trade has more than doubled. It is not surprising that a trade relationship of this magnitude has been plagued with challenges. The government is determined to continue to work with the United States to ensure the free movement of goods, services and persons across the Canada-U.S. border.
Canada is a trading nation. Clearly, without trade, without the opportunities it brings, without the demand it generates and the jobs it creates, our economy and our economic position would not be as strong as it is today.
We are committed to free trade and to fair trade. If we are to continue to generate the high standard of living, if we are able to continue to provide good jobs and bright futures for Canadians, we will need to work hard to promote the benefits of trade and ensure that Canada remains one of the greatest trading nations in the world.
For our part, the Government of Canada will continue to negotiate trade agreements, seek access to the most dynamic markets of the globe and ensure that our companies are treated fairly.
This is an issue where we have looked to the provinces to partner with us. We have responded and there are issues and structures in place that will allow us to take this to a higher court, which is the World Trade Organization. I would contend that we have taken a measured, balanced approach to this. We have in the past taken issue with some of the United States protectionism and we have won every case. I have every confidence that we will be victorious on this issue and we are taking the right approach.
I have appreciated this opportunity to address an issue that impacts on all Canadians.