Mr. Speaker, I am pleased to respond on behalf of the Minister for International Trade to a question asked in the House of Commons on May 2 by the hon. member for New Brunswick Southwest concerning softwood lumber.
At that time the member wrongly mentioned that the government had nothing to offer Canadian lumber workers. He further stated that the Prime Minister had not taken a special interest in the issue.
Nothing could be further from the facts. The softwood lumber dispute with the United States continues to be Canada's number one trade challenge. On May 22 the United States administration imposed 27% countervailing and anti-dumping duties on our lumber exports following the U.S. International Trade Commission finding that the Canadian softwood lumber exports to the United States were threatening to injure U.S. producers.
The Government of Canada, the provinces and territories and Canadian industry reject the United States government's determinations relating to Canada's lumber exports. Our lumber is not subsidized, it is not dumped, and it is not injuring or threatening to injure the United States lumber industry.
In full co-operation with the provinces, territories and industry, the Government of Canada is challenging the U.S. decisions at the WTO and under NAFTA. We are challenging the U.S. preliminary and final subsidy determinations and we have initiated two more general trade challenges relating to softwood lumber. We are also undertaking two NAFTA challenges as well and are analyzing the threat of injury determination for possible WTO and NAFTA challenges. We are taking every step possible to defend our industry, and let me repeat, in full co-operation with the provinces, territories and industry.
In response to the hon. member's comments that the Government of Canada has nothing to offer our lumber industry and workers, I would like to remind the member for New Brunswick Southwest that on May 27 the Minister for International Trade announced that the Government of Canada would provide an additional $17 million to Canada's lumber industry so that it can carry out an education and awareness building campaign in the U.S. An industry led campaign is the best way to educate key segments in the United States that softwood lumber duties have a punitive effect on not only our lumber industry but on their domestic market in the home building and other lumber related construction industries.
The Minister for International Trade also announced $3 million in incremental funding for advocacy so that Canadian officials in our embassy and consulates across the United States can intensify our opposition to U.S. protectionism in softwood lumber and other vital Canadian trade sectors, including agriculture and energy. In essence this will help us raise the volume of our opposition to U.S. protectionist actions.
One month ago, the Minister of Natural Resources announced long term measures that will help our forest industry through diversification and innovation. His announcement will open new markets and foster innovation through enhanced research and development capabilities. The announcement included $29.7 million for the Canada wood export program, $30 million to support research and development activities, and $15 million for the value added research initiative for wood products for a total of $75.7 million over and above existing programs.
The member would portray this as a matter on which the Canadian government has not acted or has not acted effectively, on which it has just been riding off on its own. That is simply incorrect. By now the member ought to be aware of the concerted efforts of the federal government, the provinces and territories and industry to tackle this problem.