House of Commons Hansard #193 of the 37th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was industry.

Topics

Government Response to PetitionsRoutine Proceedings

10 a.m.

Kitchener Centre Ontario

Liberal

Karen Redman LiberalParliamentary Secretary to the Minister of the Environment

Mr. Speaker, pursuant to Standing Order 36(8) I have the honour to table, in both official languages, the government's response to two petitions.

Canadian Human Rights ActRoutine Proceedings

May 28th, 2002 / 10:05 a.m.

Canadian Alliance

Deborah Grey Canadian Alliance Edmonton North, AB

moved for leave to introduce Bill C-465, an act to amend the Canadian Human Rights Act.

Mr. Speaker, I am pleased to introduce my private member's bill today. This took a great deal of research and talking to a lot of people who feel truly discriminated against regarding their assistance dogs. We know that seeing eye dogs certainly have become very commonplace in Canada, but it has come to my attention that an enormous number of Canadian citizens have been denied access to goods, services and transportation because they have fully qualified assistance dogs that are turned away from special transportation facilities, are not allowed in schools, and are not allowed in public places and restaurants.

My bill seeks to amend the Canadian Human Rights Act so that these people would have full access and would be able to live full and very productive lives with the assistance of these marvellous trained animals that are able to help them.

Right now I would ask for the House to give unanimous consent to just put this through because it is so sensible.

Canadian Human Rights ActRoutine Proceedings

10:05 a.m.

The Speaker

Does the hon. member have the unanimous consent of the House to have the bill approved at all stages now?

Canadian Human Rights ActRoutine Proceedings

10:05 a.m.

Some hon. members

Agreed.

Canadian Human Rights ActRoutine Proceedings

10:05 a.m.

Some hon. members

No.

Canadian Human Rights ActRoutine Proceedings

10:05 a.m.

The Speaker

I am afraid there is no consent, so we had better just go with the good, solid process we have in place and which might take a little time.

(Motions deemed adopted, bill read the first time and printed)

PetitionsRoutine Proceedings

10:05 a.m.

Canadian Alliance

Monte Solberg Canadian Alliance Medicine Hat, AB

Mr. Speaker, it is my pleasure to rise today and present a petition on behalf of 381 residents of Medicine Hat and the immediate area.

The petitioners call upon parliament in the following way: that the creation and use of child pornography is condemned by the clear majority of Canadians, that the courts have not applied the current child pornography law in a way which makes it clear that such exploitation of children will always be met with swift punishment, therefore, the petitioners call upon parliament to protect our children by taking all necessary steps to ensure that all materials which promote or glorify pedophilia or sadomasochistic activities involving children are outlawed.

PetitionsRoutine Proceedings

10:05 a.m.

Bloc

Paul Crête Bloc Kamouraska—Rivière-Du-Loup—Témiscouata—Les Basques, QC

Mr. Speaker, I have the pleasure to present in the House of Commons a petition concerning the denial of the fundamental rights of people hired by the Canada Post Corporation as rural route mail couriers, by not maintaining their wages and working conditions, which constitutes discrimination against them.

This petition is fully justified and I hope the government will take follow up action.

Questions on the Order PaperRoutine Proceedings

10:10 a.m.

Kitchener Centre Ontario

Liberal

Karen Redman LiberalParliamentary Secretary to the Minister of the Environment

Mr. Speaker, I ask that all questions be allowed to stand.

Questions on the Order PaperRoutine Proceedings

10:10 a.m.

The Speaker

Is that agreed?

Questions on the Order PaperRoutine Proceedings

10:10 a.m.

Some hon. members

Agreed.

SupplyGovernment Orders

10:10 a.m.

Canadian Alliance

John Duncan Canadian Alliance Vancouver Island North, BC

moved:

That this House has lost confidence in the government for its failure to persuade the US government to end protectionist policies that are damaging Canada's agriculture and lumber industries and for failing to implement offsetting trade injury measures for the agriculture and lumber sectors.

Mr. Speaker, I am pleased to rise before the House today to present this supply day motion for the official opposition. As the international trade critic for the official opposition and speaking first, I will focus my comments on the softwood lumber side of the motion and will split my time with my colleague, the member for Selkirk--Interlake, who is our senior agriculture critic and will focus on the agriculture industry side of the motion.

The importance of the motion should not be underestimated. First, there are Canadians sitting at home not working because of belligerent comments about Presidents Bush, senior and junior, by the Prime Minister and his nephew. Canadians are very aware that the Canadian government essentially has no influence on the Bush administration and its increasingly protectionist policies.

Just last week, from May 16 to 20, the Canada-U.S. Interparliamentary Group met with senators and congressmen in the U.S., and the kinds of problems we have became very clear. For example, we had the Minister of Natural Resources make a $75 million announcement on some programs for the forest sector that have direct implications for the softwood lumber dispute. Despite the fact that Department of Foreign Affairs and International Trade had full knowledge of our visit, despite the fact it knew softwood was on the agenda, there was no follow-up to ensure that the government members in the meeting were aware of what had been announced.

Fortunately, or maybe from the government's perspective unfortunately, I was the only one who could really respond to questions put forward by a U.S. senator and a U.S. congressman about whether or not the program was a subsidy. I had been made aware through my office that this announcement had been made and I had already put out a somewhat critical press release.

My point is that the government is not results oriented. It only knows how to throw money around. When it comes to following through and working in the trenches, it is simply not there.

There is a host of examples of areas in which the government has gone out of its way to alienate our major trading partner. Our motion asks the government to re-evaluate its basic approach to Canada-U.S. relations.

In addition, the official opposition has been trying to engage the government for months on the extension of EI benefits to accommodate forest workers laid off as a consequence of the softwood lumber dispute and on designing a softwood tariff trade injury program that would prevent the closing of significant parts of the softwood industry in the face of the punishing 27% tariffs. Not only does the minister of trade not want to talk about these trade issues despite extensive questioning, but he also sent a strong signal to the minister of human resources by stating that no softwood lumber jobs have been lost due to the softwood lumber dispute. This statement is factually wrong. Is it any wonder that the minister for HRDC has been impossible to move on the plight of unemployed forest workers when her responsible cabinet colleague makes statements denying that a very real problem exists?

We have asked the minister of trade to apologize for his comments, and despite letters from industry and workers, the minister has neither apologized nor retracted his statement.

One of the employers wrote a letter on May 6. He said:

I am very disturbed that you do not feel our forest employees are negatively impacted by the softwood lumber dispute. I have on many occasions, advised you of the layoffs our employees have faced due to the unresolved softwood lumber dispute. You have indicated that the forest industry is going through a restructuring process. May I remind you that all industries go through a restructuring process when demand is low, as higher cost operations are shutdown or curtailed. I have informed you in the past that U.S. lumber consumption is very strong, however a 27.22% duty cannot be absorbed by our customers and we will continue to lose market share. This is not due to a restructuring process, this is due to the unresolved softwood dispute.

The employer went on to complain:

One year later there is still no plan B and yet you have told us since last year, that the Government of Canada will assist companies when we fight these unwarranted duties.

I am advising you today, that our Company will once again take significant downtime as a direct result of the softwood lumber issue at many of our operations causing job loss and further loss of market share unless a non-subsidized program is put in place promptly for forest companies.

That in a nutshell summarizes much of our concern.

The Minister of Natural Resources, when the minister of trade did not have the opportunity to be in the House, was questioned on these comments and he suggested they were taken out of context. He denied that forest workers were out of work because of the dispute. However we all saw the television scrum. We all know the government is into damage control regarding scandals, cronyism and corruption.

In the last week the Minister of Natural Resources and the minister of trade have announced $95 million worth of spending in the forest sector. These public relations damage control announcements will do nothing to address the real issues which are unemployment and mill closings. What the government is announcing is long term spending and it is deeming this to be for innovation, diversification, research and development and forest industry advocacy.

We should take a moment to analyze what the announcements mean in substance. The advocacy should have been started years ago. The all party natural resources committee which I sat on in June 2000 suggested exactly that. The leader of the official opposition and I called for this advocacy last August.

Our government talks tough domestically and then treads lightly with our U.S. trading partner. I will summarize my comments as they relate to the $75 million announcement on May 16 by the natural resources minister. This funding is an attempt to obscure the fact that the government is avoiding the real issue of tariffs and that this will affect our competitiveness in the U.S. marketplace.

Diversification and innovation are areas in which the government has had a poor track record in picking and choosing winners and losers. Any development of markets is long overdue but will hardly address the current issue in a timely way.

Six weeks ago this same minister echoed my call for a tariff management scheme through Export Development Canada or some other vehicle while Canada continued its challenge of the U.S. tariffs at the World Trade Organization and before NAFTA. He has been distancing himself from those comments ever since.

I put the Minister of Natural Resources on notice at the premiers' summit on softwood lumber in Vancouver on April 29 that we had not forgotten his support on March 29. We will continue to call him to account for those statements which he has refused to support ever since.

The $20 million announcement from the international trade minister yesterday is months overdue. It does nothing to address the real issue of forced worker layoffs and mill closings. The announcement is simply public relations and damage control.

This announcement is not new money. The minister is reannouncing a $17 million program planned prior to September 11 that was shelved. The minister's announcement of $3 million in additional resources for our trade consulates to deal with U.S. trade issues is long overdue. These announcements continue to do nothing to address the substantial measures needed to assist laid off forest workers and to deal with the tariff burden that is threatening large sectors of the Canadian forest industry.

We will continue to press the minister on these issues and that is what today's debate is all about.

SupplyGovernment Orders

10:20 a.m.

London—Fanshawe Ontario

Liberal

Pat O'Brien LiberalParliamentary Secretary to the Minister for International Trade

Mr. Speaker, it is regrettable that we have this motion. It is a divisive motion at a time when industry and the provinces continue to stand with the government. The official opposition is engaging in a rather silly motion.

The member says he asked the government to reassess its policies. That is not what I read. This is a motion of non-confidence in the government. It is because we have not been able to convince the United States to end its protectionist policies.

Could the member tell us if he thinks that should be the case with the U.K. and the other countries of the world which have not been able to convince the United States to end its protectionist policies?

There is regret worldwide about this policy. Allies of the United States are expressing their anger and frustration. Hopefully their governments are not facing such a motion that calls for non-confidence because somehow one country unilaterally has not been able to bring the United States to end its protectionist policies.

Is the member not naive in his assessment of the situation? Perhaps while he is answering that question he could explain to us why, if there is such great interest and concern about international trade in his party, this time a year ago his party went something like two months without even having a trade critic? For some two months it had no one in the House of Commons assigned to specifically monitor and question the government on its trade policies. Is that what he means by a show of interest from the Canadian Alliance?

SupplyGovernment Orders

10:20 a.m.

Canadian Alliance

John Duncan Canadian Alliance Vancouver Island North, BC

Mr. Speaker, it is abundantly clear that we have a special relationship with the United States. First, it is our NAFTA trading partner. There are only three nations in NAFTA. Second, 85% of our exports go to the United States.

The parliamentary secretary must remember that it was his own minister who made the comment that the Prime Minister's effectiveness in dealing with the Bush administration was tainted and not worthwhile because of the track record of antagonism between the Prime Minister and the Bush administration. I do not know that a comparison of non-NAFTA nations is useful.

The parliamentary secretary has brought up many times the question of a vacancy in the trade portfolio. It is a bogus point. The parliamentary secretary knows that the softwood file was my file when I was in the natural resources portfolio long before I was named trade critic. There has not been a beat missed. This is simply throwing a red herring into the fray.

SupplyGovernment Orders

10:25 a.m.

Liberal

Pat O'Brien Liberal London—Fanshawe, ON

Mr. Speaker, the member said there was not a beat missed. There was also not a question asked in the House of Commons on softwood lumber for weeks and weeks by his party, by him or anybody else. The motion speaks to more than softwood lumber. It speaks of the trade policy. The truth is, and he should explain it to his constituents, that his party went at least two months with no trade critic when it was ripping itself apart over its leadership a year ago.

SupplyGovernment Orders

10:25 a.m.

Canadian Alliance

John Duncan Canadian Alliance Vancouver Island North, BC

Mr. Speaker, I throw that into the category of petty politics. There has been nobody who has been more proactive on the softwood issue than the Canadian Alliance. We led announcements by the government from either his minister or the Minister of Natural Resources time after time. This is somewhat of an embarrassment to the government and that is why it is playing petty politics.

SupplyGovernment Orders

10:25 a.m.

Canadian Alliance

Howard Hilstrom Canadian Alliance Selkirk—Interlake, MB

Mr. Speaker, today the Canadian Alliance has put forward a very important supply day motion in regard to our trade relationship in particular with the United States but also in relationship to our trade around the world. Agriculture, for which I am the chief critic for the Canadian Alliance, is an area that the government has fumbled every bit as badly as it did with the softwood lumber issue.

In 1995 the government signed the Uruguay round agreement which in essence got the world moving toward reducing subsidies and developing hard and fast rules about our trade relationship with individual countries. At the time the government changed supply management and went to tariff protection as opposed to quota protection which was all ready there. In essence it started the process of selling out supply management in the country. The current WTO talks will deal with the reduction of tariffs that protect our supply management.

Even though the government professes to be protecting all sectors, primarily the Quebec and Ontario sector, it has sold them out. We note also that the Prime Minister, in speaking about imports of products from poorer third world countries, is being a little deceptive in that he professes to protect supply management by not allowing these poor countries to send any kind of supply managed product to Canada. He will allow imports of all other kinds of agriculture products but not those supply managed products, thereby depriving the poorer countries from getting ahead. I see a two-faced stand by the government.

The European Union is every bit as bad or is worse than the United States in regard to agriculture policy. Today I will deal with the U.S. farm bill but I also want the Americans to know that the European Union is twice as bad as they are when it comes to trade policy dealing with North America.

Canada obviously cannot write laws for other countries, or tell them what to do or argue with them when they are staying within the WTO rules. That is the case with the U.S. farm bill, with a couple of exceptions.

We have talked about our trade relationship and agriculture products with the United States. Since NAFTA, and even before it, Canada has been trying to establish a continental market in agriculture products between Canada, Mexico and the United States and that was moving along quite well. With the special relationship Canada has with Americans, the government should have been able to influence them more than it did. Instead we have the antagonistic results that are not in keeping with the continental market and not in keeping with the best interests of Canadian farmers.

The U.S. farm bill will give about $180 billion to U.S. farmers over the next 10 years. The U.S. secretary of agriculture stated: “The U.S. will not unilaterally disarm”.

Back in 1995 the government unilaterally disarmed our Canadian farmers by reducing subsidies to virtually zero by the year 1997. Contrast that to the written policy of Canadian Alliance. We would only reduce our subsidies in conjunction with other countries. We understand from where Secretary Veneman is coming. When subsidies are lowered, It has to be a joint process so that one country does not unilaterally disarm, resulting in farmers of that country almost starving to death and certainly living below the poverty line.

In Saskatchewan this year it is estimated that the grain farmers will only make about $13,000 net income. That is a direct result of the lack of policy and trade negotiation ability of the Liberal government.

With regard to subsidies and what Canada should be doing, the farm groups across the country, including the free market groups like the western barley growers and the western Canadian wheat growers, have called for a trade distortion compensation program which would require $1.3 billion to compensate our grain and oilseed farmers and keep them competitive with American farmers who are producing the same products. This was based on the government's own figures. The federal government is responsible for trade agreements. The federal government is responsible for coming up with a trade injury program and funding it.

I would like to point out, before the government members stand up and start talking about the action of the Canadian Alliance on agriculture, that on February 25 I asked the government how it would protect our pulse industry. We know that the U.S. farm bill includes pulse crops in its subsidy program. I of course got no answer from the minister of agriculture.

On April 18, prior to the signing of the farm bill, I once again brought up the fact that there should be discussions with Secretary Veneman about our challenges under the WTO and NAFTA, particularly if the farm bill was passed. Again there were no commitments from the government.

On May 2, I asked the minister if we would challenge the farm bill when passed. Of course, there was no answer again. This was asked again on May 6 and 21. Hansard recorded those questions when we were trying to get the government to do something.

In essence the government was very ineffective prior to the signing of the bill. Since the bill, we have not received any commitment from the government with regard to a trade injury compensation program.

The government sent three top level ministers responsible for trade, agriculture and the wheat board to Saskatoon. The farmers did not receive any promises about the program. The finance minister even listened and no comments were made that would give the farmers in the grain and oilseed sector any hope.

The country of origin labelling was added to the U.S. farm bill, in particular because the northwest terminal feedlot program was not promoted by the government. Our member for Lethbridge pointed that out quite clearly. Back in the winter he asked the government to do something about the northwest terminal feedlot program otherwise the Americans would bring the origin of labelling. What did we see? The government did nothing. We now have ended up with country of origin labelling in the U.S. farm bill which will hurt our producers.

In Manitoba we also have the problem of TB in elk. The Minister of Canadian Heritage takes care of national parks. What do we have? We found out on the weekend that the CFIA took away Manitoba's TB-free status three or four years ago and did not tell anybody. Now there is a potential trade problem. Live cattle may have to be tested in the future before being exported. What did the government do about the problem with TB in Manitoba? Nothing.

I will not go into the issue of the Canadian Wheat Board. If we had a voluntary Canadian Wheat Board, we would end up with less challenges from the United States. We would be operating according to the wishes of our Canadian farmers who want a voluntary wheat board that would work within market forces as opposed to a dictatorial government forcing farmers to market through one agency when it is against their best interest.

SupplyGovernment Orders

10:35 a.m.

NDP

Dick Proctor NDP Palliser, SK

Mr. Speaker, I want to come back to the member's remarks about not disarming unilaterally and remind him that that is exactly what the former Reform Party talked about back in 1995. Neither the member nor I were in the House at that time. If he cares to look back at Hansard around March 29 of that year he will find a speech by Elwin Hermanson the then agriculture critic for the Reform Party. He said “I have no criticism about the cuts to agriculture”. Then he went on to say that his only criticism my be that if the Reform Party were on that side of the House it would be cutting further and faster.

Indeed when the member for Selkirk--Interlake was a candidate for election in 1997, the Reform Party was still calling for $600 million worth of cuts to the Canadian agricultural program. Would the member care to comment on that?

SupplyGovernment Orders

10:35 a.m.

Canadian Alliance

Howard Hilstrom Canadian Alliance Selkirk—Interlake, MB

Mr. Speaker, I sure would like to comment on that. I cannot believe the NDP are going back and trying to fight the 1993 election over again, which it lost so severely. In 1997 it barely kept its status as a party in the House due to the very few numbers that were elected. Of course, in 2000 it barely survived again.

The Canadian Alliance policies were what caused it to become the official opposition in both 1997 and the year 2000. Obviously its agriculture policies were the very ones that a lot of farmers in the west wanted to see because the Alliance took every seat in the west, with the exception of one that the NDP received which has a big farm component to the electorate.

The policies of the Canadian Alliance are written down in black and white and every Canadian can read them. They say that the Alliance supports the use of safety net programs and that we call, as are the farm groups and the provinces, for a trade injury compensation program. I and members of the Canadian Alliance are the only people who have raised this in the House.

I know there the NDP asked one question last week with regard to the trade injury compensation program. I think all the member did was simply read Hansard from the days before and repeat my question. If that is the agriculture policy of NDP members and if that is the way they want to operate, it is up them. However with regard to the criticism of Canadian Alliance members, we were the one who drove this.

The Alliance members have asked over 20 questions on agriculture in the month of May. We have put forward this debate on agriculture and softwood lumber today. What do I see the NDP doing? Nothing except copying a question that I asked a long time ago.

SupplyGovernment Orders

10:40 a.m.

London—Fanshawe Ontario

Liberal

Pat O'Brien LiberalParliamentary Secretary to the Minister for International Trade

Mr. Speaker, because the member seemed to be partially behind the motion from his colleague, I would like to ask him if this is really a serious motion expressing non-confidence in the government because it has not single-handedly been able to prevent the U.S. farm bill? Is it a serious motion given the repulsion that countries around the world have expressed about the U.S. farm bill and given the helplessness and anger that many countries are feeling over this American protectionist measure?

Is the member serious in supporting that the government does not have the confidence of the House because it single-handedly has not been able to prevent local politics? As Tip O'Neill said “all politics are local”. This is local politics at work in the United States. Why does the member not understand that? Surely he cannot be serious about this motion.

SupplyGovernment Orders

10:40 a.m.

Canadian Alliance

Howard Hilstrom Canadian Alliance Selkirk—Interlake, MB

Mr. Speaker, the issue is not only what the government should be able to do with a good relationship with the United States before the bill was signed, but it is what the government has done now that the bill has been signed or, more explicitly, what it has not done.

Last week the ministers of agriculture, trade, finance and the wheat board went to Saskatoon and spoke to farmers. In fact what they did was give farmers the Trudeau salute with their middle fingers again telling them that there would be nothing for them. The promise they got from the agriculture minister was “Mr. and Mrs. Farmer, you just wait until the agriculture policy framework comes in and everything will be glorious”.

Local politics is exactly what this is about. It is time the government did something for our farmers locally. It has to bring in the trade injury compensation program. It has to fix the TB problem and cull that bloody herd of elk in the Riding Mountain National Park which is spreading the disease. The government sits on its hands and does nothing. Darned right this is local politics.

SupplyGovernment Orders

10:40 a.m.

London—Fanshawe Ontario

Liberal

Pat O'Brien LiberalParliamentary Secretary to the Minister for International Trade

Mr. Speaker, that answer holds the record for inconsistencies but I will address that at another time.

I am disappointed to have to stand in the House today and address what really is a divisive and rather unreal motion. It is about as unreal and far from reality as the question put to me by the member for Vancouver Island North's last Friday in the House when he was fooled into believing that the WTO was actually disbanding. The motion is not in touch with reality.

Canada and the United States are each other's largest trading partners. About $1.9 billion worth of goods and services move across the border each and every day. In 2001 Canada exported $351 billion in goods to the United States and imported $255 billion in return. Some 85.1% of Canadian merchandise exports is destined for the United States. There can be no doubt that trade with the United States is a key driver of Canada's economic growth and prosperity. Management of this crucial trade relationship is the government's top trade policy priority.

Both sides recognize the importance of keeping trade flowing to our mutual advantage. I heard a member opposite ask if the scope of trade with the United States was a good thing. It is reality. Jobs for many of his constituents, my constituents and the constituents of members throughout the House are dependent on our trade with the United States. The reality is that is the scope of our trade relationship and it bears an overview.

The Canada-U.S. border issues that emerged in the aftermath of the tragic events of September 11 underscore the need for a border that operates efficiently and effectively. To further enhance our management of the border, the governments of Canada and the United States signed, on December 1, 2001, a declaration on the creation of a smart border for the 21st century. Through this declaration we have the opportunity to build a smart border that securely facilitates the free trade of people and commerce, and a border that reflects the largest trading relationship in the world.

I digress to point out that I will be sharing my time with my colleague from Etobicoke North.

The vast majority of trade between our two countries is dispute free and the trade continues to grow fueled by the increasing integration of our two economies and facilitated by the rules based trade system provided by the WTO and the NAFTA.

It is important to note that only NAFTA countries, Canada and Mexico, enjoy the benefits of preferential access to this huge and important U.S. market, the vast majority of which is trouble free. Yes, we are very upset about the U.S. farm bill and the softwood lumber, but--

SupplyGovernment Orders

10:40 a.m.

Progressive Conservative

Rick Borotsik Progressive Conservative Brandon—Souris, MB

You have opposed free trade? That is the reality.

SupplyGovernment Orders

10:45 a.m.

The Deputy Speaker

Order, please, I know members cannot wait for the question and comment period but it is coming up soon. In the meantime, let us hear one speaker at a time if possible.

SupplyGovernment Orders

10:45 a.m.

Liberal

Pat O'Brien Liberal London—Fanshawe, ON

Mr. Speaker, I hope the member's interjection will not come out of my time.

The reality is the vast majority of our trade is trouble free. Yes, we are angry and frustrated over the unfair action in softwood and the ludicrous U.S. farm bill but we must keep things in total perspective. I have a history lesson for the Tory member opposite when it gets to questions about the relative position of his party historically and my party historically on the matter of continental trade.

Only NAFTA countries benefit from the extensive set of rules and obligations and dispute settlement mechanisms that help shield us from certain U.S. trade action. For example, it is because of the NAFTA that Canada was excluded from the recent U.S. safeguard action on steel imports, a topic of great importance in Canada.

The NAFTA also provides a unique dispute settlement system that ensures that trade remedy actions, such as countervail, dumping and safeguard, are applied in a manner consistent with domestic law. Canada has used this mechanism with success in contesting U.S. duties on products such as pork and hogs. We are using it with respect to U.S. action on softwood lumber.

We do have protection from the arbitrary and capricious use of U.S. trade remedy law, protection that no other country enjoys, apart from Mexico. It is worth noting that just as only a small percentage of our bilateral trade is subject to dispute, an even smaller percentage, some 2%, is subject to trade remedy action.

A key priority for the Government of Canada is to resolve the disputes that will inevitably emerge in a trade relationship valued at over $675 billion. That is the scope of this relationship.

We will continue to use every tool available to us, including dispute settlement provisions, to aggressively defend Canadian interests. We have an effective array of tools to do this.

Our main priority is in resolving the softwood lumber issue. In this, the fourth U.S. led dispute in 20 years, we are challenging recent U.S. government decisions that negatively affect our industry in every legal venue open to us.

Despite the U.S. having never sustained its claims three times previously, we are once again in a position of having to defend ourselves against U.S. trade action and cumulative 27% duties on our lumber exports.

As the U.S. government has not offered any new proposal to secure a long term durable solution, the Government of Canada is currently undertaking four challenges of U.S. decisions, laws and policies relating to softwood lumber at the WTO and two others under the NAFTA.

Another perennial problem area is agriculture. We have had disputes with the United States on our wheat exports and on dairy. Most recently Canada, along with many other countries, including EU members Australia, South Africa, India, Mexico, Brazil, Argentina and China, have expressed their concerns about the direction of the new U.S. farm legislation. I wonder if those governments are facing the kind of silly motion this government is facing today because they have not been able to get rid of the U.S. trade action.

The legislation moves in precisely the opposite direction of the Doha objective: to achieve substantial reductions in trade distorting domestic support. We are reviewing the legislation very carefully, as are other countries, to assess its conformity with U.S. international trade obligations.

It is at this point I would like to point out how incredibly naive the member for Vancouver Island North is to propose that the farm bill is a policy directly directed at Canadian producers and the fault of the Canadian government. It is unbelievable. This was a move to protect political interests in the United States during an election year. That is what I meant earlier by Tip O'Neill's comment about all politics is local.

It is a destructive step backward in global trade mobilization and no amount of lobbying from right wing President Fox in Mexico or close friend and ally, prime minister Tony Blair, could persuade the American congress and senate otherwise.

The motion would have us believe if only the Prime Minister and the president were somehow closer friends we would not have this farm bill. It is just nonsense. Tony Blair can attest to that.

Many people focus on the dispute settlement systems under the WTO and the NAFTA as the key means of resolving disputes.

While those are fast and effective ways of resolving disputes, they are not the only means at our disposal and are often used only after we have exhausted all other avenues.

For example, the trade relationship is managed through regular means between Canadian and U.S. ministers and officials, and, on a daily basis, through our embassy and consulates in the United States.

The Prime Minister enjoys a good working relationship with the president. The Deputy Prime Minister has worked actively with the U.S. director of homeland security on the smart border declaration. The Minister for International Trade meets regularly with his counterparts. In fact the minister is in Mexico today meeting with Secretary Derbez and U.S. trade representative Mr. Zoellick.

We also used the various committees and working groups set up under NAFTA and the WTO to pursue Canada's interest. The Minister for International Trade, the Minister of Agriculture and Agri-Food, the Minister responsible for the Canadian Wheat Board and the Minister of Finance met with provincial and farm group representatives on Friday. While everyone at that table recognized the need to provide short, medium or long term support to farmers, there was a consensus that we should not open ourselves up to punitive trade actions but rather seek out solutions that would increase productivity and profitability consistent with the proposed agricultural policy framework.

Our trade relationship with the United States is the government's top priority. That has been demonstrated repeatedly by the actions of the Prime Minister, the Deputy Prime Minister, obviously the Minister for International Trade, and many other ministers. There have been many delegations. The member who moved the motion has even participated in delegations of Canadian parliamentarians to go to the United States to seek fairer trade between our countries.

However to put forward a motion of no confidence in the government because somehow it has not single-handedly been able to reverse the historic trend of American protectionism is unreal, divisive and, of course, the government cannot support it.