Mr. Speaker, I will be splitting my time with my capable colleague from Eglinton--Lawrence.
It is quite ironic that we are debating this particular issue at this point in time. One would think this issue should not even be an issue for debate given that our two countries share the longest border in the world and that we do more trade with one another than any other countries in the world. Over 87% of our trade is with the United States as compared to over 25% of their trade being with Canada.
To a large extent we are friends, neighbours and partners whether we like it or not. In the interests of people on both sides of the border we are forced to work collectively.
The issue of softwood lumber represents less than 3% of the overall trade with the United States, slightly less than $10 billion on an annual basis.
If we were to look at the overall relationship between Canada and the U.S., it is excellent. Frankly, it is those small irritants that are causing a tremendous amount of frustration on this side of the border. Simply put, the softwood lumber issue is clearly creating a tremendous amount of problems in different parts of the country.
Thousands of families, as colleagues on both sides of the House have indicated, are suffering as a result of the countervailing duties and the punitive duties the Americans have decided to put on softwood lumber.
This is not the first time the issue has surfaced. It is now three or four times that we have fought with our friend and trading partner to the south in courts and before tribunals and almost every time we have won. The last time we had a dispute, the Americans had to pay Canadian companies in excess of $800 million along with interest on taxes illegally collected from those companies on goods that had been sold on the other side of the border under an arrangement we had with them for many years.
The American administration is moving again like a pit bull with an imposition on our industry in excess of 30%. Frankly, it is totally unacceptable. As the minister clearly stated, the challenge the government mounted at the World Trade Organization is very much wanted. The government and industry on this side of border will win again. The bottom line is, what does it take for the American administration when it comes to this particular issue to understand that enough is enough and that we have to move on?
The bottom line is not a question of subsidies or no subsidies; it is a question of protectionism or no protectionism. The question that needs to be asked of the American administration is why it continually seems to buckle under to the pressure of special interests in the United States, whether it comes from Montana, Mississippi or wherever. Enough is enough.
The unfair duties being imposed on the Canadian industry not only penalize the industry here in Canada, but they penalize American consumers. American consumers are absolutely outraged at the administration. American homeowners have to pay in excess of $3,000 as a result of this unfair tax being imposed on softwood lumber imported from Canada.
We could tell consumers in the United States to buy wood from Mississippi but consumer group after consumer group told us when we were in the United States that they do not like Mississippi wood. Even if we were to give it to them for free they would not put it in their homes simply because the wood from Mississippi is not good enough quality to put in homes. It may be okay to use for chairs, tables or whatever else, but it is not of sufficient quality to put in homes. That is the problem. That is the crux of the matter.
American consumers are smart. They are intelligent. They are consumers who will pay for the high value goods they receive. The administration is robbing those consumers of their right to choose. How is it doing that? By imposing this unfair tax of 30% on products being imported from Canada.
We can talk all we want. The government was asked to do this and that but the bottom line is the government has done exactly what it is supposed to do. After the agreement expired on March 31, 2001 what kicked in immediately was free trade. With free trade an agreement is not required. Everyone follows the law.
Two things are being asked of our government. First, we want the government to know it has our unequivocal support in what it does in terms of its challenge at the World Trade Organization so the laws of the land are upheld. Second, if and when the industry itself in Canada asks the government to sit down and look at ways to come up with a mutually conclusive agreeable type of arrangement then it should look at that.
For us to try to undermine the process and criticize the government, whether it is the opposition, special interest groups or whatever, is highly unfair. At the end of the day the government is doing exactly what it is supposed to do, which is to stand up for the interests of consumers, the workers and the industry and to do what is fair and important to the industry in Canada. Whether the industry is in the west or the east, it should stick together and maintain the common position that it has maintained all along, which is free trade in softwood lumber. That is what we were told in the United States when we met with consumer groups and when we met with the industry here.
The subcommittee on international trade held a number of hearings with all of the stakeholders. They are totally and unequivocally in support of free trade on softwood lumber. Therefore the case is closed. Let us move on. The bottom line is, will our friends to the south move on? One can only say the test of time will tell.
Our colleagues in both houses, the senate as well as the congress in the United States had better stand up for the rights of their consumers. They had better stand up for the rights of their constituents who are calling on them. We want free trade in softwood lumber. The very same consumers have called on us in the House to defend the interests of the consumers in the United States and to defend free trade as we know it now.
To that extent I am very happy with the way the Minister for International Trade, his parliamentary secretary and officials have conducted themselves over the past few months. They have been trying to provide strong leadership. They have been trying to do what is right and fair on both sides of the equation.
To that extent I can say this debate is very timely. However, in the interest of time we had better come to grips with the fact that free trade must prevail at all times. There cannot be a double standard where on the one hand products are bought under the rules of free trade and on the other hand taxes are imposed on them. It is not right. It is not free trade and it is not acceptable. We will not let that occur without a challenge.