Mr. Speaker, I will be splitting my time.
I am pleased to respond to the motion put forward by the hon. member for Vancouver Island North. As we know, the Canada-U.S. softwood lumber dispute is a tough issue and currently our most difficult trade challenge. However Canada and the United States have had 20 years of conflict and litigation over the export of lumber to the United States. Even prior to Confederation Canadian softwood lumber exports were a trade irritant for some in the United States. Regrettably, there are protectionist elements in the United States that want to perpetuate the conflict and have no intention whatsoever of advancing the issue to secure a long term agreement.
Resolving the softwood lumber dispute is a priority for the Minister for International Trade and the Government of Canada. Many Canadians and the communities in which they live depend on this important industry and are seeking free and fair trade with our neighbour to the south.
I will speak today to the lumber trade challenges we are facing, the actions we are pursuing to defend our industry, and the path we are taking with the provinces and the industry to seek free trade in softwood lumber.
As members know, on May 2 of this year the United States International Trade Commission found that Canadian softwood lumber exports posed a threat of injury to U.S. lumber producers. As a result 27% countervailing and anti-dumping duties have come into force.
The Government of Canada believes the decision is fundamentally flawed. Our industry is not subsidized, it is not dumping and it is not causing or threatening to cause injury to U.S. producers. The international trade commission's decision was not at all unexpected given the protectionist nature of many U.S. softwood lumber decisions in the past year. However it does not make it any less damaging to our industry.
Canadian industry has questioned the U.S. trade actions, as we all have, by asking a simple question: How can the Canadian industry threaten the U.S. industry when we have a stable Canadian share of the U.S. market? The U.S. lumber market is strong and the U.S. industry is profitable. In response to the U.S. determination Canada is conducting a review of the international trade commission's reasons to determine whether the ITC has violated international trade rules under the WTO or NAFTA.
In response to the international trade commission's decision and previous ones by the U.S. department of commerce the Government of Canada is challenging the U.S. trade actions in all legal venues open to Canada. We are taking all necessary steps available to us. We are doing everything possible to defend our industry including: a NAFTA challenge of the U.S. final subsidy determination; a NAFTA challenge of the U.S. final dumping determination by Canadian industry; and a WTO challenge of the U.S. preliminary subsidy determination.
Canada recently launched another WTO challenge concerning the flawed U.S. final subsidy determination and its imposition of countervailing duties on Canadian producers. We are working with the industry to determine whether we can launch a WTO challenge of the dumping decision. As mentioned earlier, Canada is conducting a review regarding a possible challenge of the international trade commission's final injury determination under chapter 19 of NAFTA and at the WTO.
Other general trade issues not exclusively related to softwood lumber include: a WTO challenge of the Byrd amendment which would allow U.S. customs authorities to distribute duties to American producers; and a WTO challenge of U.S. duty deposits policy.
We believe we have strong cases and that positive decisions for Canada will bring the United States government back to the negotiating table in a serious manner so we may achieve a long term, durable solution to the dispute.
As we have heard in the House and as the minister has said many times, the Government of Canada is extremely sensitive to the impact U.S. duties are having on Canadian industry. We know of the burden being carried by communities and families who depend on healthy trade with the U.S. We are aware of the impact the issue has had in terms of lost jobs and mill closures. Although in the immediate and short term we are confident we have the necessary programs in place to assist displaced workers in communities, we are monitoring assistance measures closely and keeping all our options open.
As the minister of human resources said in the House, she is currently tracking employment insurance claims in the softwood sector so we can have an ongoing and accurate assessment of the extent of the dislocations and their impact on communities. In addition, $13 million will be made available to provide support and services to softwood workers in British Columbia.
Two weeks ago the Minister of Natural Resources announced $29.7 million for the Canada wood export program, $30 million to support research and development activities, and $15 million for the value added research initiative for wood products. These are long term measures to help ensure the prosperity and competitiveness of Canada's forest industry through diversification and innovation. Diversification will open new markets for our forest products and foster innovation through enhanced research and development capabilities.
It is not only in Canada that communities, companies and workers are feeling the impact of U.S. lumber duties. In the United States consumers, builders, workers and others have been hurt by punishing U.S. lumber duties. This has not been well understood in the United States up to now. Yesterday the Minister for International Trade announced $20 million in funding to ensure Canada's message about the need for free and fair trade in lumber and other vital sectors is heard and understood in the United States. The Government of Canada is supporting Canadian industry in its education and awareness building campaign in the United States regarding the punitive impact duties have on both countries.
With softwood duties in place we must redouble our combined efforts to resolve the dispute. We must work against U.S. protectionism in a range of other vital Canadian trade sectors including agriculture and energy. The industry led campaign will inform and educate key segments in the United States about the punitive impact the duties have had on them and their interests. When U.S. decision makers realize softwood lumber duties favour the few at the cost of the many we hope the Americans will see the need to resolve the dispute in a reasonable way.
We are all extremely sensitive to the impact of the unwarranted U.S. lumber duties on Canadian workers, firms and communities. While we remain open to pursuing negotiations leading to a long term solution, the United States must demonstrate a willingness to re-engage on a basis that is mutually acceptable.
The Government of Canada has not received any new proposal or expression of interest from the U.S. administration to resume negotiations. When we do we will consider it. In the meantime the Government of Canada will continue to act on behalf of our workers and lumber dependent communities. We will continue to explore all options to assist them in this time of need. We are challenging U.S. decisions at the WTO and NAFTA. We will continue to defend the interests of Canadian industry.
With softwood duties now in place we must redouble our combined efforts to resolve the dispute. We must work against U.S. protectionism in this vital Canadian trade sector. We must continue toward our goal of free trade in softwood lumber.