Mr. Speaker, on May 23, a NAFTA panel reiterated that countervailing duties imposed by the United States on softwood lumber are illegal. As a result of the three earlier NAFTA panel decisions in this case, the U.S. Department of Commerce has reduced the original subsidy from 18.79% to 1.88%. However, the Americans continue to impose an unjustified 16.37% subsidy rate.
The Minister of International Trade announced aid for softwood lumber industry associations, but only for late 2005. This aid is insufficient and would only allow the industry to pay a small portion of its legal fees, which have exceeded $350 million to date.
The industry in Quebec and Canada needs a real assistance plan, right now, to survive the harassment by the American industry. The situation is all the more urgent since the industry must not only assume astronomical legal fees and over $4.5 billion in illegal duties, but deal with a slowdown in construction. The government must take its head out of the sand and act.