Mr. Speaker, I am proud to speak on the amendment to Bill C-24 which would have the effect, if the amendment were adopted by this House, to prevent the government from taking action to, in effect, sell out the softwood lumber industry in this country.
The length of time that Canada and the United States have been dealing with this issue almost boggles the mind. It heated up over the last four or five years, resulting in some very offensive tariffs by the United States against Canada and against this industry, tariffs and trade actions that have unanimously been shot down in every tribunal that the U.S. has gone to in order to justify their actions. The rulings have consistently been against the Americans and, I must say, to my own surprise as a lawyer, in their own courts.
It was always thought that Canada's position was absolutely solid before the WTO and under NAFTA, which the U.S. government and the U.S. forestry industry were not prepared to accept. However, there was almost a solid belief that if it ended up before the domestic courts of the United States that the Americans would prevail and that they would use those decisions or decision to justify their ongoing unfair trading practices with regard to softwood lumber between the two countries.
However, it came as a surprise when in June of this year the court in the United States ruled in Canada's favour and stated that Canada was not performing any improper practices in the softwood lumber sector and that the United States had no basis on which to levy these tariffs, none whatsoever.
It is also interesting, from the information that we have at this point from experts in the field, that the decision made can only be appealed once and that it is mandatory that the appeal be dealt with within 12 months.
Therefore, by June 2007 there will be nothing left for the Americans to contest. We will have closed every avenue in the courts, including their domestic courts, and Canada will have won in every one of the tribunals and courts.
In spite of that, we see, quite frankly, the unconscionable conduct by the Canadian government to negotiate a trade arrangement on softwood lumber that would see Canada faced with a reduction in the amount of money the Americans need to return to us, which is over a billion dollars, and a new protocol that would be to Canada's great disadvantage as there is no certainty in the arrangement. Our trade experts, who have studied the agreement and know the area well, have strong feelings that the agreement encompassed by Bill C-24 would not protect the industry on an ongoing basis.
The agreement would allow the parties to pull out. Because of the money that we will be leaving in the United States, over a billion dollars, it is expected that a good half of that will go to the U.S. softwood lumber sector and be used against us to mount additional challenges in the very near future.
The agreement buys us nothing in the way of certainty. It provides no sense of stability in the industry, to the companies or to the workers, and it leaves wide open the ability of the Americans to come after us again if we sign this agreement with them.
When we see the negotiations that have gone on by the Minister of International Trade, it begs the question of what it means for other sectors. I want to spend a minute or two on that because it has become very troubling for the auto sector, which is a major industry in my hometown, to see what has happened with the government, and that particular minister supported by the government, in negotiating the softwood lumber deal with the United States.
Will we be faced with the same kind of treatment, the same kind of wimpishness in the negotiations with South Korea that are going on right now, as we are faced with on softwood lumber with the Americans, and a willingness on the part of the government and the minister to trade off Canada's interests and, in effect, get nothing in return?
Our fears were enhanced when we saw the minister refuse to divulge information on the negotiations because a study was done by his department and he consistently refused to release it. Finally, another study, commissioned by the sector and by the CAW, the union in particular, showed what would happen to the auto sector in Canada if we were to enter into this trading agreement with South Korea. The effect would be quite devastating with regard to employment and to the traditional companies that have been producing cars in Canada. It would be very devastating to the auto parts sector with massive losses in all areas occurring in a very short period of time.
When that study became public, all of a sudden the minister released his department's study and was extolling the virtues of the agreement based on the study. Although the study was very favourable, obviously couched in that way, it also showed that the auto sector would suffer in Canada. It would not be advanced at all and would, in fact, decline if we went ahead with the negotiations. If we were to sign a treaty with South Korea and put it into place we would begin to suffer.
The minister has been asked a number of times in the House why he would even consider continuing on with the negotiations? We have had nothing but blandishments and clichés about wanting trade but nothing about the merits of the agreement.
The reason the auto sector's fear of the government and the minister is so high is that when we look at the softwood lumber deal and at the negotiations that the minister led and carried on, we then see the results that are so damaging to the softwood lumber sector right across the country. However, there seems to be a willingness, almost an obsession with going ahead with what is a very bad deal for the country.
The NDP will be very strong on voting against Bill C-24 and supporting the amendment that would have the effect of turning this around and getting us out from under this agreement.