Mr. Chair, I am pleased to join the debate late this evening on this important topic and discuss Canada's work to resolve the softwood lumber dispute with the United States.
I would like to highlight a few of the actions our government has taken, our short term goals and hopes with the softwood lumber dispute. I would like to touch on the relationship between Canada and the United States and also the unique nature of the maritime lumber industry where I come from.
Canada and the United States have the most successful example of trading cooperation in the world. It is true there are issues on which we occasionally disagree and we often hear more about those exceptions than we do about the vast number of issues on which we agree.
Softwood lumber is one example. Canadians are rightly concerned. It is a large sector of our economy, 350 communities in Canada, 250,000 people. We are concerned about the U.S. decision not to abide by the NAFTA rulings in our favour. Free and fair trade has after all been enormously important in developing the North American prosperity and competitiveness that we enjoy in the continent today.
While the softwood lumber dispute, the largest trade irritant in our relationship, is a significant issue, we should remember that most of our trade is problem free and our bilateral trading relationship is in fact envied around the world. However, the strength of our relationship is on occasion tested. We do on occasion follow a different path. I do not think that that is a sign of weakness. I think that is a sign of strength.
For example, Canadians and Americans had a different perspective on the war in Iraq. Our government, taking into account Canadian values, decided not to enter that war. I felt then, as do most Canadians, that the just causes for resorting to conflict had not been adequately established.
However, we do share the American belief in democracy and the commitment of the U.S. to bring stability in that region. We have been strong partners in the reconstruction of Iraq, training police forces to help restore order there and donating hundreds of millions of dollars to rebuild infrastructure and foster the growth of a revitalized society.
With respect to softwood lumber, we have another example where our countries disagree. Let me once again confirm the government's commitment to finding a long term policy based resolution of this ongoing trade dispute which began following the expiry of the softwood lumber agreement in March 2001.
The Government of Canada is confident in the approach taken thus far in defending the interests of the Canadian softwood lumber industry. Our goal in this dispute, which we have vigorously pursued, is to improve access to the United States market for Canadian softwood lumber producers. The government has pursued this goal in close consultation with provincial governments, Canadian industry and its associations through several rounds of negotiations, through the NAFTA, the WTO and now the U.S. Court of International Trade challenges for those U.S. trade actions.
We also have provided support and assistance for the lumber sector while it copes with the burden of this dispute. In addition to the goal of resolving the dispute, the government has made it a priority to invest in this industry on a long term basis by working to increase market opportunities around the world for Canadian softwood lumber.
As hon. members are aware, despite numerous WTO and NAFTA panel rulings against U.S. duties on softwood lumber, the U.S. continues to impose countervailing and anti-dumping duties on softwood lumber and has collected over $5 billion in duties to date.
The U.S. has dismissed a key unanimous NAFTA extraordinary challenge committee ruling which obliges the U.S. to revoke the duty orders and return those cash deposits. Canada considers the U.S. failure to implement the NAFTA decision to be contrary to U.S. law and U.S. trade obligations.
This flouting of NAFTA obligations is unacceptable. The government will explore every reasonable option with a view to resolving this dispute, including litigation, high level political intervention and advocacy.
While the U.S. continues to dodge its obligations, the Government of Canada will continue to defend Canadian interests and will insist that the U.S. fulfill those obligations. Unfortunately, until they resolve this dispute, Canadian industry continues to pay unfair duties and to suffer.
The Government of Canada is very sensitive to the tremendous burden that this dispute places on the softwood lumber industry and has been behind the industry, as well as its communities and its workers, every step of the way.
I would like to bring to the attention of hon. members the steps the government has already taken in order to assist this sector while the dispute rages on.
In 2002 the government announced a variety of assistance programs for the industry, communities and workers totalling $356 million to mitigate the damage that this dispute has imposed on one of Canada's key industries. The programs were announced by Natural Resources Canada, Industry Canada, Human Resources Development Canada and the then Department of Foreign Affairs and International Trade. They were made up of $71 million for measures to assist displaced workers; $110 million for a national softwood industry and community adjustment fund; $95 million in funding for softwood lumber research and development, market expansion initiatives and advocacy efforts; $20 million in advocacy efforts to inform the U.S. public of the impact of the U.S. duties on U.S. lumber consumers; and nearly $15 million in assistance for Canadian lumber industry associations. The funding assisted those associations to operate effectively under the burden imposed by the softwood lumber dispute.
Canadian lumber industry associations are very important and have played a key role in acting as liaisons between the Government of Canada and the softwood lumber industry throughout the course of this dispute. Industry associations also provide detailed legal and policy advice in the development of the Government of Canada's WTO, NAFTA and U.S. CIT challenges and during negotiations with the U.S. administration.
In recognition of this important role, on April 15 this year the Minister of International Trade announced that the Government of Canada would provide up to $20 million to associations directly to help offset legal expenses incurred in defending Canadian interests. Furthermore, Canadian lumber producers and their workers deserve great credit for the tremendous strides that they have made in increasing the productivity and the competitiveness of their products and their operations. If anything, the edge in productivity which the Canadian industry has enjoyed over its U.S. competitors has increased over the course of the latest round of this dispute.
I want to talk about the maritime provinces. We have a unique position in that our lumber is largely found on private land, over 75%, often on woodlots owned for generations by families. Our unique situation has been recognized by governments of all stripes here and also in the United States. It is our duty as MPs to ensure that this tradition continues to be honoured and it will. The maritime lumber industry has worked hard for this exemption and it has earned it. I disagree with my hon. colleague on this side and my good friend the very hard-working and effective member for Etobicoke North on his comments about the Atlantic Canada lumber industry.
We continue across Canada to monitor the state of the industry and the need for further government assistance. Looking forward the government is also actively developing other foreign markets through increased trade opportunities for Canadian lumber producers. This market diversification is a long term investment in the future of Canada's lumber economy and in the Canadian economy in general. There are clearly many opportunities to diversify our markets as the world economic order continues to evolve.
The government is taking a number of actions to ensure that the lumber sector benefits from those opportunities. These actions include trade missions to high growth markets China and India; working with organizations such as CMHC on influencing building codes in foreign countries to accept Canadian lumber; and using Canada's network of trade commissioners around the world to identify foreign market opportunities for Canadian lumber producers to develop.
As hon. members are no doubt aware, the government has made capitalizing on these opportunities presented by the ever-expanding market in China a priority. The very same can be said of the opportunities in China for our lumber producing sector. China is now in fact Canada's fourth largest destination for wood products. In 2000 it was our seventeenth. It is anticipated that China will overtake the United Kingdom as third on that list in the near future. The government is working hard to develop these markets. Over $7 million a year is spent to promote Canadian wood in this and other markets.
Recently the Minister of Natural Resources visited China to promote Canadian energy and softwood lumber. On October 14 the minister announced from Beijing $2.5 million from the Canada wood program to be targeted at the Chinese market in this fiscal year.
Finding these new markets does not diminish the importance of solving our softwood lumber dispute with the United States. Our American partners must comply with NAFTA. This is the single goal and the consistent goal of the Government of Canada and we can accept nothing less.
I know all members of the House have the same vision which is full and fair trade for Canadian softwood lumber and the return of the $5 billion in deposits. We need it now and we need it for years to come. I think speaking with one voice will achieve that.