Mr. Speaker, in my riding of Stormont—Dundas—South Glengarry about 170 people will lose their jobs next month because a textile plant in the town of Long Sault is moving to the U.S. I should also mention that over 100 people in Montreal will lose their jobs because the same company, Gildan Activewear, is closing its operations there too.
I asked those in management at Gildan what the main reasons were for the plant closure. They told me that under the new Central American free trade agreement, textiles produced in Central American countries have duty free access to the U.S. as long as they use yarn that is spun in either the U.S. or Central America. However, if the yarn is spun here in Canada, the United States charges a 16% import duty. Gildan Activewear, in order to stay competitive, has moved to North Carolina in the United States of America.
That is what happens when our biggest trading partner negotiates freer trade with other countries than it allows with Canada. I would urge the Liberal government to develop a good relationship with the United States of America so these kinds of things do not happen.
The management of Gildan Activewear cannot be blamed for leaving. The company had been appealing to the federal government for help for over two years so the company would not have to move and it could stay competitive here in Canada but it was unable to.
I would like the member's opinions on what the government could have done to make sure that our relationship with our trading partner would be such that this country would not lose over 270 jobs, especially 175 jobs in my riding.