Mr. Speaker, I will be splitting my time with the member for Lanark--Carleton.
I would like to congratulate the member for Vancouver Island North for bringing forward the motion today. The member has been dealing with the softwood lumber file for our party. He has done an excellent job and has earned the respect of the industry in Canada and south of the border as well for his efforts in bringing the government to understand the full ramifications of what has happened. I applaud him for that.
Over and over again we hear the minister and the parliamentary secretary say that they have worked hard particularly on the softwood lumber file. They have put their best effort forward. They have spent all the resources they have on this file.
I do not think that is much to brag about because they have come up with nothing. They have not come up with a resolution. If that is the best they can do, they had better change their tactic or yield to someone who can do better because Canadians deserve better.
The problem that really exists is the poisoned atmosphere between the administration on Parliament Hill, the Liberal government, and the Bush administration. There is no love lost between the two. It is becoming quite apparent. The fact that they cannot talk to each other is reflected in all the problems that have been created in the trade file.
I would like to focus my remarks today on the impact the country of origin labelling provisions of the U.S. farm bill would have on our agricultural sector. This is one aspect of the U.S. farm bill that is facing our producers today which could have been avoided. We tried to warn the government back in February. I brought a question to the House for the minister telling him that the country of origin labelling issue would be coming forward. It had been circulating in the beef industry in the United States for quite some time and it was put into the bill.
It states that a product must be born, raised and processed in the United States to be labelled as a product of the United States. It would affect meat, fruit, vegetables, fish and peanuts. It becomes mandatory within two years.
We feel the government needs to challenge this provision immediately. It is something that has been added to the U.S. farm bill and it is something we should have a hard look at and ensure that the WTO and NAFTA processes are put into place, and if indeed we can stop this.
Last year Canada exported $1.8 billion in beef products and another $1.7 billion in live cattle exports. Hog, live and meat, exports were worth $2 billion, vegetable exports were worth $1.6 billion and fruit exports were worth $400 million. With this country of origin labelling aspect provision being brought forward in the U.S. farm bill, all of this would be in jeopardy.
U.S. retailers and processors have stated that if this comes into effect and if it becomes mandatory the easiest way for us to work around this is to only deal with American produce and American farmers. That would immediately cut off the trade that we have created over the years with the Americans.
We have received indications that the country of origin labelling has already restricted investment in the agriculture industry in Canada. Canadian investors are so concerned with what the country of origin labelling could do to certain sectors of our agriculture industry that they have stopped building, planning and putting money into it. Therefore it is already having that kind of effect.
The threat of country of origin labelling was known long before the U.S. farm bill was signed. Despite warnings from ourselves and others the government did nothing and there it is in the U.S. farm bill, becoming mandatory within two years.
The Liberal hesitation on the softwood lumber case cost tens of thousands of Canadian jobs. That is part of the motion that we brought forward today. How will the government address the harm that has been done in the softwood lumber industry and the agricultural industry through these trade actions?
We have not heard anything from the Liberal side on that today. I do not know why the Liberals are not responding to that aspect of the motion. Maybe they will and they should. The government has gone back and forth across the country many times on agricultural issues. The time for study is over and the time to act is now.
I will offer some solutions as I wrap up. The country of origin labelling was completely avoidable. If we had shown the Americans that we were serious in opening up our border to back and forth trading, particularly in live cattle, we would have been able to avoid a lot of this.
It was the beef industry that really pushed this forward although the national beef congress in the United States reduced it from being a mandatory to a voluntary process for a couple of years. However, we should have shown some indication that we were going to implement, for one thing, the terminal feed lot protocol which allows cattle to come into Canada, be fed in Canadian feed lots and then shipped back to the United States for processing. The wording of the country of origin labelling provisions states that it has to be born, raised and processed in the United States to be able to be classified as American.
This has become an issue. It is a question we raised in the House back in February with the minister and we had no indication from him that he would do anything about it. He indicated there was a connection. He said in his remarks that there was a connection between the terminal feed lot protocol and the country of origin labelling. He was aware but was unable to resolve it, I guess, if he did raise it with secretary Veneman. He indicated that he did but there was no resolution to that.
It just shows that the Americans are not listening to our negotiators since the Bush administration took over. The relationships have been poisoned between the two governments. We have to become more forceful at the trade table or we will continue to lose on these issues and they are picking us apart.
Another part of the industry in Canada that has become successful is the pulse industry. It has done a tremendous job of expanding its industry as well as the processing that goes along with that industry. That has been targeted in this U.S. farm bill because it has seen it as being successful and it wants a piece of that action. By moving these crops into the U.S. farm bill, that were not there before, we feel is another angle the government could use to go to the WTO and to the NAFTA tribunals to challenge it and to have it reversed.
One of the things we need to be doing is to gather our partners in trade around the world and say to the Americans as a group, the Cairns group for instance, what is going on here? We do not appreciate the bill the U.S. put forward and it is ruining our industry. If Canada were to bring as much power to bear as it could then some of the poisoned relations that we have seen between ourselves and the Americans would be somewhat hidden.
We have also heard much from the industry on compensation for trade injury to the sectors of our economy that are being affected. That has not been addressed today by the government at all. It has chosen a different angle to attack us on. However I am proud of one thing we have done. Last June we submitted to the agriculture and trade minister our idea of a rapid response process for agricultural trade disputes. We acknowledge the WTO and NAFTA processes have to be gone through but we need another process that could circumvent these long and costly battles.
We presented that and I have a letter from the agriculture minister saying that is all fine and good but it is not something that the government is going to embrace. Then, lo and behold, when the government toured around on its framework for the future of agriculture, one of its recommendations is a rapid response trade resolution mechanism. It actually used the same words that we provided.
We also understand that the United States and Mexico have signed a memorandum of understanding on agricultural trade disputes. Part of it is a rapid response mechanism to circumvent some of these long and costly disputes that happened in the agriculture sector. We took this to our Canadian Alliance assembly in Edmonton in April and we were able to bring this to the floor as a resolution. It was adopted by the Canadian Alliance and will be part of our policies from hereon to state that we need to have a rapid response trade resolution mechanism in place to circumvent some of these long expensive battles that we have seen.
We have seen it in the beef industry, the potato industry and in softwood lumber. We have seen it in other agricultural products. We need to have a process in place whereby parties could come together and come to some resolution before these things turn into full blown trade wars.
The motion we brought forward today has some aspects that deal with what should be done to the injury that has been carried out to the industries of softwood lumber and agriculture. I hope we hear from the government today as to what its response is to that.