Mr. Speaker, finding a permanent solution to this trade dispute which has been going on for 20 years has been and remains without question a priority for the federal government.
In fact, I am pleased with the progress of the legal challenges to the duties on Canadian softwood lumber imposed by the United States. The WTO recently released its final report on the countervailing duty order in which it found that the U.S. violated international trade rules in its determination that Canadian lumber producers are subsidized. In addition, on September 5, 2003 a NAFTA panel decision found that the United States failed to substantiate its claims that Canadian softwood lumber threatens to injure U.S. producers. If the U.S. cannot sustain its determination, there will be no basis for the imposition of duties against Canada's softwood lumber exports. This decision upholding Canada's position will aid the pursuit of a long term durable solution to the dispute that is in Canada's interest.
While we wait for the United States to rescind its trade actions, I can assure members that the Government of Canada will continue to defend in every way possible Canadian industry, Canadian workers and Canadian communities.
As members are aware, to mitigate the various effects of this trade dispute on the entire industry and workers who depend on the Canadian lumber industry, the Government of Canada announced in 2002 measures representing more than $355 million. Funds were targeted toward assisting workers through training and job sharing programs, investing in research to promote the long term competitiveness of the forest sector, opening new markets for Canadian wood products, and helping to address the mountain pine beetle epidemic in British Columbia, to enumerate a few.
Some very positive results have already been achieved in support of the wood products industry. For example, through our market development efforts a new wood frame construction code will soon be approved in China. This will enable Canadian wood products and technology to be used in residential housing construction in China.
The impact of this is already being felt. Our latest statistics show an increase of approximately 60% from 2001 to 2002 in our wood exports to China. As well, our work in Japan has influenced fire regulations to be amended, allowing for increased use of wood in residential housing.
These are just a few examples illustrating the benefits of the programs we announced last year. We continue to monitor the effectiveness of the other announced programs and will make modifications as necessary. In addition, we have been monitoring the impact this trade dispute has had on the wood products industry and we will continue to do that.
The forest industry has made a great contribution to the Canadian economy for more than a century and we will not abandon it. Working with the provinces, associations and industry, we will continue to assess the repercussions of tariff rates on the Canadian industry and on communities across the country.