Mr. Chair, I will be splitting my time.
There is a critical issue that has been plaguing Canada's economic landscape for decades: The softwood lumber dispute with the United States. This long-standing conflict has added strain on the livelihoods of countless Canadians who depend on the forestry industry. Softwood lumber, a vital component of Canada's forest sector, especially in Kootenay—Columbia, has been subjected to punitive tariffs by the United States under the pretext of unfair subsidies provided by Canadian governments to their lumber producers. The lasting resolution remains elusive due to the inability of the Liberals to close, leaving Canadian lumber producers, both large and small, in a constant state of uncertainty and vulnerability. These duties have devastating impacts on the small lumber producers, and the effects are felt right down to the employee loading wood on a belt, and if one has ever worked in a sawmill, it would be known as the “green chain”.
The forestry sector is 10% of the workforce in Kootenay—Columbia. The only industry larger is steel coal. Despite promising to prioritize the softwood lumber dispute and to work toward a fair and equitable solution, the government's actions have fallen short of expectations. Time and time again we have witnessed a lack of strategic foresight and proactive engagement from the current government, leading to prolonged periods of uncertainty and frustration.
Softwood lumber was not mentioned in the 2019 budget and, in 2021, I specifically asked the minister to take a stance to protect Canadian workers and the forestry industry. Here we are three years later with no action. The lack of action directly relates to the capital investments in mills when no agreements are in place. Just the other day, I was in Salmo, talking with the owner of a cedar mill. He is ready to invest $10 million into modernization, but with no solid agreement in place and access to fibre, it is difficult. It is not only Porcupine, but also ATCO, Huscroft, Kalesnikoff, McDonalds and Galloway. Those are generational mills that contribute significantly to our communities and that know how to sustain the environment for future generations.
Instead of leveraging diplomatic channels and trade negotiations to secure a favourable outcome for Canadian lumber producers, the Liberal government is stuck in a cycle of inaction. Its failure to effectively address the underlying grievances of the United States, coupled with a lack of decisive action on the home front, has only made the situation worse, leaving our forestry industry at the mercy of arbitrary tariffs and of protectionist measures. The absence of any sort of plan to the softwood lumber issue has undermined Canada's credibility on the international stage and has shaken the confidence in our ability to safeguard the interests of our citizens. In the face of mounting economic pressures and global uncertainties, there is a need right now for strong and principled leadership, and that has never been more apparent.
Canadian manufacturers are currently facing the longest period without a negotiated settlement in the U.S. softwood lumber dispute, resulting in the accumulation of nearly $10 billion in countervailing duties and duty fees. This ongoing issue has significantly impacted the industry, creating challenges and skepticism in the process. After speaking with the Interior Lumber Manufacturers' Association, we found that value-added producers are facing another unique challenge when it comes to the softwood lumber dispute. They pay duties based on a higher sale price. As a result, it costs them more money to manufacture. When a raw material leaves Canada and goes to the U.S., we lose that. We used to have, in 2006, under a Conservative government, a $500 per thousand board feet maximum duty. That was it. Now, we do not have that, so these high-end products are more expensive.
What is the Liberal plan moving forward? It is imperative that the government takes immediate action to resolve the softwood lumber dispute by engaging with our American counterparts. The softwood lumber issue represents a glaring failure of leadership on the part of the Liberal government. It is time for the government to step up to the plate, to demonstrate true commitment to the interests of the hard-working folks in the forest industry and to finally put an end to this dispute.
How long will Canadians have to wait for the government to deliver on its promises?