Mr. Speaker, I wish to advise you that members of the Bloc Quebecois taking part in this emergency debate will be splitting their time in 10 minute segments.
First, I want to thank the member for Kamouraska--Rivière-du-Loup--Témiscouata--Les Basques for requesting an emergency debate on the softwood lumber issue. I think everybody will agree that this emergency debate has become necessary after last week's announcements.
We requested an emergency debate on this issue because we are both concerned and appalled. Obviously, we are appalled by the decisions made by the Americans, which we find outrageous. With countervailing duties of 19.3% to which anti-dumping duties averaging 12.58% were just added, we are talking about duties totalling about 32%. This will be extremely detrimental to our industries, our businesses, our jobs and our regions in Quebec.
It is outrageous because in this process that the Americans just put in place, they are both judge and judged. That enables overly protectionist lobbies to constantly harass the Canadian and Quebec industry, as we have seen not only over the last 15 years, but also over the last century.
What is somewhat sad is that this surtax, this practice used by the American industry of calling upon trade tribunals to impose this type of surtax, is detrimental to the American economy and goes against the interest of American consumers, an interest that would be well understood.
As I was saying, these duties exceeding 32% that will apply for the next six weeks represent a surtax currently estimated at $637 million for Quebec alone. This means that on $2 billion worth of shipments to the United States, the Quebec industry could pay $637 million a year in duties, should these decisions, which are just preliminary, be maintained as final decisions.
We are appalled by these decisions that are totally unjustified. In this regard, I think everyone in the House will agree that our industries are not subsidized, as recent investigations have shown. What we must face is deeply rooted prejudice on the part of American officials, American elected representatives and the industry to the effect that, because our forests are publicly owned and managed, they are automatically sold at low price to the industry, which would be a form of subsidy.
So, as I have already said, we are concerned because, until December 17, there will be this 32% surtax, which is a threat to our exports, to our jobs and to our industries, not to mention our businesses.
I would remind hon. members that Quebec is the second largest producer of softwood lumber in Canada, after B.C., with 25.5% of total production. We produce approximately seven billion board feet annually. This provides 40,000 jobs directly related to the industry, whether in sawmills or in the bush.
In Canada, there is talk of 130,000 jobs related to this industry. They are threatened at the very moment that we are undergoing an economic downturn, perhaps—although we would not wish for it, but it is a strong possibility--the beginning of a recession. In Quebec, this is an industry which generates $4 billion in revenues annually. There are more than 250 Quebec municipalities which have developed around it. There are 135 towns and villages 100% dependent on the softwood lumber industry for their jobs in manufacturing. As hon. members can see, this is an extremely important industry not only for Quebec as a whole, but also for its regions and the municipalities in those regions.
Half of our production for export goes to the U.S., and the other half to Canada. As I have pointed out already, we are talking about annual exports of CAN $2 billion. For all of Canada, we are talking some $10 or $11 billion. This is, therefore, an industry of great importance for Canada and for Quebec.
We are concerned because the Americans' protectionist actions will impact, and have already impacted, employment in many regions of Quebec and Canada. They have also had an impact on a number of businesses, particularly smaller businesses, which are more financially vulnerable. However, we are also concerned, more than when parliament reopened, about the current government's real will to bring us to free trade.
I will not hide the fact that I am concerned that the situation in which we currently find ourselves closely resembles the situation that led to the 1996 agreement, which, I will remind hon. members, penalized the industry in Quebec considerably. Even though we had managed to prove that we were not subsidized, we were subjected to a 6.5% export tax, which was the average that was negotiated with the Americans. For us, this was additional proof of the federal government's inability to defend Quebec's interests. Our exports were unfairly subjected to a quota, and we do not want to go through that experience again.
I am concerned because there are currently discussions under way between the provinces and American officials. We are in favour of such discussions. The Americans were quite clear about their demands. They want to discuss stumpage fees and long-term contracts, also known as the tenure system. They want to discuss mandatory requirements, in other words everything having to do with the requirement to harvest the volumes allocated by governments, particularly in Quebec and British Columbia. They want to discuss transition measures to ensure that during the time it takes for the provinces to modify their forest management systems, there are certain measures and bridging mechanisms to lead to free trade. They are also asking that both parties respect the agreements, which is completely understandable. They especially want Canada to abandon its procedures before the WTO, and eventually, before the NAFTA panels.
But what did we ask for from the Americans in return? Nothing. This is what I do not understand about the discussions. Clearly, for now, these are not what you would call negotiations.
We know for a fact that there are adverse effects from American practices, which create distortions in the United States, but which also create distortions in how we manage the softwood lumber industry. Because of these chronic softwood shortages in the U.S., we are forced to periodically increase our production capacities, not to meet demand from Canada or Quebec, but to meet demand from the United States.
They are the ones then calling for help. When their forests resume production, then we are in the way. Periodically, we have gone through these protectionist crises to restore portions of the market. Especially since Canada and Quebec in particular have invested in technology and reorganized the work. I know whereof I speak, because I used to be the secretary general of the CSN, and we were well represented in the lumber industry. I was a party to the discussions which arose in these companies, especially in the early and late 1980s, about how to reorganize the work, and move on from an approach which was perhaps a bit easygoing to one which was performance-oriented.
Now, because we in Quebec and in Canada have done our homework, we should pay the price, while the Americans did not invest enough in their industry. It is the federal government's responsibility to ask these questions to the personal envoy of the U.S. president. The provinces should not have to do it. They are currently working very hard in their discussions on forest management systems. I know that, particularly in Quebec, a number of proposals were put on the table. In any case, these proposals were necessary, and the government had intended to put them on the table. They will satisfy, partly for sure, U.S. officials.
However, this will not be enough if the federal government does not take its responsibilities. This is why it is important to maintain, both in the rhetoric and in the practice, a will to return to total free trade with the United States. I am concerned when I hear the parliamentary secretary refer to negotiations and discussions at the same time. I am also concerned when I hear the Prime Minister of Canada tell us, as he did yesterday, that we had an agreement that worked for five years. It did not work for five years. It penalized us for five years.
A summit meeting with all the players is necessary to ensure that the consensus achieved in May still exists in November. The next six weeks will be extremely difficult, and understandably so. Some manufacturing associations, such as the Canadian Lumber Remanufacturers Association and FTLC, the Free Trade Lumber Council, asked for such a meeting. We are also asking for a meeting at the earliest opportunity.
Some measures are in order, I am convinced that the hon. member for Kamouraska--Rivière-du-Loup--Témiscouata--Les Basques will elaborate on this, and more specifically on employment insurance, to help workers make it through this difficult period.
I will conclude by saying that the Prime Minister must absolutely get the U.S. president to order the withdrawal of these countervailing and anti-dumping duties, until the WTO panels have validated our position.