Mr. Speaker, I am pleased to have the opportunity to respond to the question asked by the hon. member.
As the hon. member knows, on April 27 the Prime Minister addressed the House to announce that Canada and the United States had reached an agreement in principle that provides a basis for ending the longstanding softwood lumber dispute. This agreement in principle meets all of Canada's objectives and will provide Canadian companies with a stable and predictable market environment.
The government is aware of the difficulties and challenges facing our forest industry and has made resolving the softwood lumber dispute a priority. A resolution to this dispute is required to provide our lumber industry, workers and communities with the certainty and stability they need.
When the government first turned its attention to resolving the longstanding dispute, it quickly realized that Canada's approach needed to be reinvigorated.
The government recognized that litigation is a lengthy process, the results of which cannot be guaranteed. In the absence of a negotiated settlement, litigation could have continued well into 2008 and beyond, and even if Canada were ultimately successful, nothing would have prevented the U.S. industry from launching yet another round of lumber litigation against Canada.
A final agreement will put a stop to the endless court battles and costly legal bills.
The government views this agreement to be in the best interests of Canada. That includes the lumber industry, communities, lumber workers and their families, who have been hit hard by the punitive duties at the border.
The provincial governments have come out in support of the framework agreement, as has the majority of the softwood lumber industry. A final agreement will provide a seven year framework agreement designed to ensure U.S. market access to Canadian softwood lumber. It will protect Canadian market share, eliminate U.S. duties and the relentless trade actions brought on by the U.S. industry, and return to Canadian exporters some $4 billion U.S. Our obligation was to conclude a deal that is in Canada's best interest. We have done that.
This agreement provides predictable market access for Canadian exporters. When the price of lumber is above $355 U.S. per thousand board feet, as has generally been the case the last two years, no restrictions will apply on Canadian softwood lumber entering into the United States.
The agreement establishes a dynamic framework. It takes into account the different operating conditions in Canada from coast to coast. It provides provinces and industry with flexibility to respond to their specific circumstances as well as exempting certain regions and products.
Canada and the United States, with the full participation of the provinces, will discuss provincial exits based on policy reforms under the terms of the agreement.
The agreement also includes an innovative measure that will respond to Canadian industry concerns about the possibility of other lumber producing countries increasing their exports to the United States at the expense of Canada.
As the hon. member can see, this is an agreement that addresses the interests and concerns of Canadian stakeholders and one which meets the needs of the country as a whole. That is why Canada is working to finalize this important agreement with the United States, which will pave the way to a long term resolution on softwood lumber.
Canada and the United States are engaged in a dynamic process. Negotiations between Canadian and U.S. officials are ongoing. Canada has consulted closely with the provinces and industry and will continue to do so.
In conclusion, the Conservative government has delivered to Canadians what could not be delivered before. We were asked to secure a better deal for Canadians than what was on the table in previous rounds of talks. That is exactly what we have delivered.