Mr. Speaker, I would like to reassure the member that finding a permanent solution to this trade dispute remains without question a priority of the federal government.
There has been progress made on the legal challenges to the duties on Canadian softwood lumber imposed by the United States. The recently released final report by the WTO on the countervailing duty order 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 help us find a long term durable solution to the dispute, one that is in Canada's interest.
As we wait for the United States to rescind its trade actions, the Government of Canada will continue to defend in every way possible Canadian industry, Canadian workers and Canadian communities.
We on this side have responded. To mitigate the various effects of this trade dispute on the entire industry and on 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 name a few.
I have already stated to the member examples of some very positive results that have been achieved in support of the wood products industry but I will state them again. 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 positive developments for our lumber industry as a result of the programs we announced last year. We continue to monitor the effectiveness of the other announced programs and will make modifications as necessary. We are following this file very closely and responding appropriately and we will continue to do that.
The forest industry has made a great contribution to the Canadian economy for more than a century. We value it. We will not abandon it. Working with the provinces, associations and industry, we will continue to assess the impact of tariff rates on the Canadian industry and on communities across the country.