Mr. Speaker, I am glad to have the opportunity to speak again about my concerns and the concerns that have been expressed to me in the riding of Vancouver Island North about how this softwood lumber deal is bad for Canada.
I want to reiterate that the Conservatives campaigned on getting tough with the Americans and standing up for Canada and Canadian interests, but instead they got tough with the Canadian lumber companies. With the signing of this deal, the Conservatives have negotiated away all of Canada's wins at the NAFTA tribunals and put workers and communities in jeopardy. So many of those communities are in my riding and are suffering because of this deal.
After five years of legal battles under NAFTA and the U.S. Court of International Trade, the CIT ruled that Canada was entitled to the return of every penny of the $5.3 billion owed, every penny. That is the amount of illegally imposed duties of our softwood exports over the years. Again, we won.
Why would the government sellout Canadian manufacturers and communities, and capitulate to the pressure of the U.S. government and the lumber lobbyists? Why did the government snatch defeat from the jaws of victory?
The fact is that the recent court ruling, which I might add came only last Friday, is rendered a moot point due to this bad softwood lumber agreement. This agreement should go down in the history of Canada as one very shameful moment for the government. We just gave away $1 billion. I guess it is just one more way the government trims the fat. It seems to like to do that. Its rush to appease the U.S. lumber lobbyists has sold out ordinary Canadians, especially those who live and work in forest dependent communities.
The other irony about all of this is that about $500 million of Canadian money will go to the U.S. That is $.5 billion to the Coalition for Fair Lumber Imports. This money will most likely be used to rekindle the coalition, which is failing, and at some point in the future we will have to fight the U.S. again and it will be with our money.
It will be using our money to fight us. It is a sad irony. What a sellout. Why would anyone agree to this when it is our duty as members of Parliament to stand up for our constituencies and communities, all of whom happen to be Canadian? They are in our ridings.
Let me provide a few other reasons why this is a bad deal, besides the fact that it is based on a falsehood that Canadian softwood lumber industries are subsidized. This falsehood was exposed and rejected in every NAFTA and U.S. commercial court ruling that clearly sided with Canadian industry.
Another reason this is a bad deal is that it can be cancelled unilaterally at any time. It does not go on for seven years. It could last only two years or even 18 months and does not provided stability and predictability to the Canadian softwood lumber industry. This deal constrains trade unreasonably by applying punitive tariffs and quotas that hinder the flexibility of the Canadian softwood industry.
I want to talk about a small flooring manufacturing company in my riding that is devastated by this agreement. It has told me it is going to be losing over $300,000 a year in revenues because it cannot find a way under this deal as it stands to do business with the U.S. It is going to be shut out. It is a small company and is going to lose out because of this deal.
It will be the dozen or so people who work in small businesses in my community who will probably lose their jobs if this deal goes ahead. Small businesses are very concerned about their future. It is a bad deal because it does not respect small businesses.
The deal kills the credibility of the NAFTA dispute settlement mechanism. Canada won in the courts but by negotiating away all of those wins we have put the dispute mechanism in jeopardy. We might as well say that we did not need it. We capitulate in a heartbeat.
It sets a bad precedent, not only for the softwood lumber industry, but also for other industrial sectors in this country. If the government can capitulate to the Americans on softwood, what can it do in other sectors that are governed by NAFTA? Will we see this again in other industries? It is a bad deal.
The deal does nothing for the thousands of workers who have lost their livelihoods over the past five years. My colleagues and I in the NDP called for loan guarantees from the government so that the industries in our communities could get through this and maintain some of the workers. However, that did not happen. Many of the industries had to lay off workers and many are now gone because of this deal. We also see a further job loss through consolidation caused by the quotas and export taxes.
I have another reason for talking about this agreement. This softwood lumber agreement creates an incentive for exporting raw logs. I live on Vancouver Island and I when I drive up and down the Island highway I see truckload after truckload of raw logs leaving the Island and going to a log dump. We used to have a lot of small mills, mills that were the backbone and the lifeblood of so many small communities. These mills kept those communities going because the logs were tied to the communities. This is not happening any more. This deal does nothing to stop these logs from being exported out of our communities and out of the country. The logs are being processed offshore and in the U.S. Those are family supporting jobs that we have lost in our communities. That is not standing up for our communities.
This continued export of raw logs has to stop. I have spoken about this in my communities and everywhere I go people agree that this is something that has to end. For that reason alone, I would think that people would not support this deal.
This deal does not provide effective protection for Atlantic Canada. The softwood lumber agreement has a fundamental and irreversible impact on the ability of Canada to defend itself within NAFTA and the United States commercial court system. The agreement makes everyone substantially more vulnerable, notwithstanding the Atlantic exemption. The renewal of the exemption is not a guarantee against failure in the future. The Atlantic provinces are still vulnerable to subsidy allegations. There will be nothing to stop the U.S. from alleging that Atlantic Canadians are not living up to this deal.
This is a bad deal because I know much of the industry was not on side. It was pressured into supporting this deal and a lot of bullying tactics went on. Many industries felt forced into signing on to this deal. A lot of them actually did not sign on, but were pressured anyway. I am really standing up for those people in those industries, for the workers in our communities and for the communities in my riding and across this country that will be devastated by this deal.