Mr. Speaker, I stand today to continue the debate and discuss a unique event in Canadian history.
Never before has a Government of Canada snatched defeat from the jaws of victory like this minority Conservative government has with the Canada-U.S. softwood sellout. Never before has a government fought a trade dispute in the courts, won every single case, and then turned around and dismissed these victories. Never before has a government thrown the rule of law completely out the window.
Never before has a government given up our leverage in our negotiations before making an agreement. Never before has a minister caved in to meet an artificial timeline that was of his own making. Never before has a minister bullied our own industries to please the United States. Never before has Canada witnessed a government that has gone to bat for political expediency instead of going to bat for hard-working Canadians.
Simply put, this softwood lumber deal is not a deal at all. It is a complete sell out.
Last Friday, the U.S. Court of International Trade ruled that Canadians are entitled to the return of every single penny of our $5.3 billion that was illegally imposed by the United States and that we have free entry of our product into its markets. We finally have the United States in its own courts, so why is the government wiping away five years of legal victory? Why are we foregoing $1 billion of the total duty owed and agreeing to a new border charge that can be as high as 22.5%?
This deal reeks either of complete incompetence or of complete inexperience, and I fear it reeks of both. The agreement that the minority Conservative government has rammed down Canadians' throats makes a mockery of free trade and turns over our domestic sovereignty to the United States of America. It also creates a sliding scale export tax that at current price levels is actually higher than the current U.S. duties, 22.5% versus the 8.5% that we were previously paying versus the 0% that we would have been paying after last Friday.
This agreement also abandons all our legal victories and gives up, as I said, $1 billion to secure the peace. How long are we securing the peace for? For as much or as only two years.
This agreement also seeds our decisions over domestic resource management to the United States. Now Washington will be calling the shots in our very own forests. It caps the share of the American softwood market at 30% when in fact the previous Liberal government turned down a cap of 34%. This deal is actually worse than the deal we previously declined.
This agreement also contains anti-surge provisions that cripple the ability of our forest industry to deal with unexpected circumstances such as the rise of the pine beetle infestation in British Columbia. It exposes firms to needless uncertainty by agreeing to a monthly measurement for surge protection when U.S. demand is highly variable on a monthly basis.
The agreement encourages other sectors to seek political decisions to get protection from Canadian industries, all but guaranteeing more disputes in the future.
It gets worse. Not only are we giving up more than $1 billion, but we are returning over half this money, $500 million, to the very U.S. lumber industry that we are engaged with, money that it will use down the road to attack Canadian industry.
Even American lawyers think the floor crossing minister was suckered in this deal. The inexperienced, incompetent Conservative government took the terms of the surrender and now Canadians will have to pay the price. They will have to pay the price in lost jobs, lost hope, and devastated world communities.
This deal was botched by the member for Vancouver Kingsway and, sadly, it was botched badly. Now our forestry industry, our forestry workers, and our Canadian communities will have to pay the price.
Over 360,000 Canadians are employed in the softwood industry. We have a well-earned international reputation for the quality of our wood and our products. It is not an easy time. They are also facing pressure from a high Canadian dollar, high energy prices, lower housing starts in the United States, and a shrinking demand for global newsprint.
This deal, I am afraid, will only worsen their plight, and has in fact already directly caused the layoff of thousands of workers in just the past 30 days.
Industry associations warned us that this Conservative deal would cause a disaster. The Ontario Forest Industry Association estimates that it would cause 10% of the industry to lose jobs, and we are well on our way. The Bank of Montreal expects more shutdowns of both pulp and paper and sawmill facilities. The Independent Lumber Remanufacturers Association warns that this deal would all but destroy this sector.
To add insult to injury, the minority Conservative government has continued to bully our industries into submission. The Prime Minister has backed Canadian softwood industry representatives into a corner and left them with no choice but to cede to this flawed deal.
There is a better way, however. We do have a choice. Canadians and this Parliament can say no this botched deal, and that is what we should have done from the start.
We should see our NAFTA challenge through to the end, as it has last Friday. We should implement an aid package immediately that will invest in improving our industry's competitive position, that will invest in skills of our workforce, and will work to develop new overseas markets for our wood products.
The Liberal Party cannot support this deal in good conscience, not when the Conservative government leaves $1 billion on the table, restricts our future free trade with the United States, and results in thousands of layoffs instantaneously.
It is our duty as the official opposition to stand up for the interests of the Canadian lumber producers, for the 360,000 employees, and for the interests of all Canadians.
We stand opposed to the minority Conservative government's humiliating surrender and we oppose this weak deal to which it shamefully has capitulated.