Madam Speaker, I thank the hon. member across the floor for bringing this issue forward. Whether he thinks it is in a flux or he thinks we should slow down for a short period of time, we are going to continue to work hard on this file.
I am pleased to have the opportunity to respond to the question asked in the House of Commons by the hon. member. As he mentioned, the federal government has worked closely with both industry and the provinces seeking a resolution to this long standing dispute. We share a commitment with the provinces and industry to defend the interests of Canadian lumber companies, the people they employ, and all the communities right across this country.
The U.S. department of commerce imposed 27% countervailing and anti-dumping duties on imports of Canadian softwood lumber in May 2002, following the expiry of the softwood lumber agreement. Our governments and industry have mounted a strong defence against the U.S. trade action since these duties were imposed in 2002. We continue to do so through challenges and together we have pursued a two-pronged strategy for resolving the softwood lumber dispute.
We are engaging in discussions with the United States to find a durable resolution to this dispute and we have taken no fewer than six challenges of the U.S. duty actions before NAFTA and WTO.
As the hon. member may be aware, NAFTA and WTO panels have ruled in Canada's favour in every one of those challenges, finding the U.S. duties to be inconsistent both in U.S. international trade obligations and U.S. law. As the Minister of International Trade stated on September 10, this U.S. international trade commission determination supports what the Government of Canada has been saying all along. Canadian exports of softwood lumber products do not threaten the U.S. domestic industry with material injury and there is no basis for U.S. countervailing or anti-dumping duties.
As the hon. member may be aware, on November 24 the United States requested establishment of the extraordinary challenge committee, the ECC, under article 1904 of the North American Free Trade Agreement to review the proceedings of the NAFTA panel in this case. The Government of Canada believes that the U.S. allegations and the request for this ECC are without foundation and that the U.S. claims will be dismissed.
The government will be mounting a strong case in defence of Canadian interests with the ECC challenge. If the U.S. claims are rejected, the U.S. department of commerce will be required to revoke the duty orders and refund the duty deposits paid with interest. We know the U.S. will use every litigation tool available to it in this dispute. We have always maintained that the U.S. industry is not injured by imports of Canadian softwood lumber and our position will not change.
We are working with our provincial counterparts and industry. As recently as October, our minister met with Canadian industry representatives to explore whether there was a basis for a resolution of this dispute. We have also repeatedly raised concerns with the U.S. Trade Representative Robert Zoellick and Commerce Secretary Donald Evans to further the discussions with the United States to resolve this dispute. In the meantime we have continued our dialogue with the Canadian industry over the past several weeks. We encouraged them to develop a united Canadian approach.
I would like to reassure the hon. member that the government is well aware of the impact that the softwood lumber dispute is having on our Canadian industry, our workers and our communities.
Our government will persist in defending Canadian interests in this dispute to get every cent back. We will continue to work toward a durable resolution to this dispute. We are going to use the panels, whether it is WTO or NAFTA, to get our money back.
More importantly, I would like reassure the House that our government is committed to working closely with the provinces, with the industry, and other stakeholders toward a resolution of the softwood lumber dispute.