Andrew Leslie

[Business of Supply, June 12th, 2017]

Madam Speaker, I compliment the hon. member for his passion and dedication to his constituents. I entirely agree with the emotion in his voice when he talks about their plight.

The Government of Canada has allocated approximately $800 million, under mainly commercial terms, to ensure there is a transition for those who are affected by the current softwood lumber dispute. We are going to win the legal court cases, but they are understandably going to take some time. The point is that we have to make sure that due diligence is applied to all of the compensatory methods we are using in Canada and that they are under commercial terms, because we want to win the WTO trade challenge in court.

With regard to those workers who are currently unemployed or about to be, the Government of Canada is going to work as quickly as it can to make sure that the money starts flowing to those who are most affected.

[Business of Supply, June 12th, 2017]

Madam Speaker, reverting to the discussion at hand, which has to do with softwood lumber, I would make the argument that the softwood lumber industry is one of the most advanced in the world. It is incredibly competitive. It is composed of an extraordinarily skilled workforce. A lot of small mill owners have literally poured their life's blood into ensuring that their facilities are kept modern, with exemplary working conditions. Quite frankly, our softwood lumber industry is as competitive as any in the world. That is indeed why 10% of the imports to the United States rely on the Canadian supply. That is why there are hundreds of thousands of jobs on the southern frontier, i.e., in the United States, which directly depend on the product of the skilled softwood lumber workers in Canada.

It is true that we have vigorously protested against the unfair allegations of dumping or stumpage fees. We are going to contest those in the international courts, and just like we have done for the last four times, this being the fifth, we are going to win the next court action.

[Business of Supply, June 12th, 2017]

Madam Speaker, I am grateful for the opportunity the member for Selkirk—Interlake—Eastman has given me to provide an update on the softwood lumber file. I would like to build on the excellent work that has just been done by my colleague and good friend.

The softwood lumber file is critically important to the Prime Minister, to the government, and indeed, to the people of Canada. It is one we have obviously made a priority. In fact, this has been an absolute priority for the Prime Minister and the government from the very beginning. The Prime Minister raised the softwood lumber issue first with President Obama, during their very first meeting at the APEC summit in November 2015, and again in his first meeting with President Trump in February 2016. I was present for the latter.

Canada's softwood lumber industry supports 220,000 good-paying, middle-class jobs for workers in communities across the country. We have heard some of the very unfortunate incidents that are a result of the imposition of the unfair duties initiated by the Americans.

Softwood lumber production contributes $22 billion to Canada's gross domestic product. In particular, the industry is an economic anchor in more than 170 rural communities, around which are built wonderful jobs, all focused on mills or facilities given to processing the wood.

Given Canada's geographic proximity and close commercial links to the U.S., it is no surprise that the U.S. is our number one export market for softwood lumber. It comprises 75% of overall Canadian softwood lumber exports.

We all know that there are significant benefits for the U.S. in having access to Canadian lumber. For many decades, the U.S. has relied on our exports to fill the gap between domestic production and demand. Canada's softwood lumber has historically been used to meet about one-third of the U.S. import demand. Ten per cent of the overall requirement comes from Canadian forests.

However, despite this mutually beneficial arrangement, Canada and the U.S. have not always seen eye to eye on this file. The 2006 softwood lumber agreement expired in 2015. Let me just correct some of the assertions made by my friends across the way. The previous Conservative government did not achieve a new agreement. They let the deal expire, putting thousands of Canadian jobs, businesses, and livelihoods on the line. This was followed by a one-year agreed standstill period during which the U.S. agreed not to launch any trade actions against Canada. During this one-year standstill, Canada and the U.S. were actively engaged in discussions.

Between January and November 2016, under this agreement, our government negotiators met 18 times and discussed numerous proposals and issue papers with our American colleagues. This high-level engagement was only possible because the Prime Minister and the entire government kept up the pressure on the U.S. administration. This led to a much better understanding of each other's interests. However, Canada and the U.S. remained far apart on core issues.

I know that recent media reports have said that Canada and the U.S. were close to an agreement, but this is not accurate. In reality, the U.S., which must get support for any proposed deal from the U.S. lumber industry, did not put any offer on the table that was acceptable to Canada.

As mentioned by my hon. friend just a few minutes ago, our government firmly believes a new softwood lumber agreement is in the best interests of both countries. However, where we appear to differ from the hon. opposition is that we are not willing to accept just any deal. Our goal, and this is a goal shared by the provinces and territories and by the Canadian industry, is to get a long-term deal that protects Canadian jobs and the industry itself. As mentioned, and as proven, we will absolutely not accept just any deal that locks Canada into an untenable path for our softwood lumber producers.

I want to assure the hon. member, and every member here, that Canada continues to engage the U.S. and move toward negotiating a good agreement for Canada. The Prime Minister has raised the issue many times with the President. The Minister of Foreign Affairs and Canada's ambassador to the United States will continue to raise this issue with the U.S. Secretary of Commerce and other key members of the U.S. administration at every opportunity.

Recent efforts by the Minister of Foreign Affairs with the U.S. Secretary of Commerce have led to the re-engagement of officials in technical discussions. We are going to continue to push the U.S. administration at all levels to find a way forward on this file. In the meantime, we are also watching very closely developments on the litigation side.

The U.S. recently imposed countervailing duties of 3% to 24% on Canadian softwood lumber. This was a very disappointing development. We also expect the second decision on anti-dumping duties in the very near future.

The allegations in the softwood lumber industry are simply not founded. Countervailing duties harm everyone on both sides of the border.

I also want to reiterate that the Minister of Foreign Affairs has clearly and repeatedly said that Canada is prepared to stand firm for the interests of Canadian workers and producers, if necessary with legal action. That is why the government is currently reviewing all its legal options. This includes the option to launch a legal challenge through the World Trade Organization and NAFTA.

I know that countervailing duties are a big concern for our softwood lumber industry. That is why early this month, the Minister of Natural Resources, the Minister of Foreign Affairs, and the Minister of International Trade announced $867 million in supports for our forestry industry and our communities affected by these countervailing duties. To help workers, the government is temporarily extending the maximum period for work-sharing agreements from 38 to 76 weeks to reduce layoffs. We are also increasing support for affected workers so they can upgrade their skills and transition to new opportunities.

As the Minister of Natural Resources said, this action plan will be a tangible demonstration of our government’s commitment to take quick and reasonable action in order to defend our softwood lumber industry and to provide a better future for workers, their families, and the communities that rely on them.

I want to return to the hon. member's comments about the industry and sustainable jobs.

Canada's softwood lumber industry is incredibly advanced and forward thinking, and the government is doing everything it can to help create new and sustainable jobs by opening up new markets for Canadian wood products. By diversifying into a variety of markets, of course, we will be less vulnerable to any action from one specific market, i.e., the United States. On this front, the Minister of International Trade and the Minister of Natural Resources have been incredibly active, along with teams from the softwood lumber industry. Earlier this month, the Minister of Natural Resources travelled to China with a delegation, and the Minister of International Trade recently led trade missions to Italy, China, Vietnam, South Korea, Japan, and Singapore, which are markets where there is a growing demand for Canadian forestry products.

Let us not forget the European Union, which is the world's second-largest market, with over 500 million consumers and a $22-trillion gross domestic product. The Canada-EU trade agreement, CETA, is a landmark agreement that gives the Canadian forestry industry preferential access to EU markets. Once CETA is fully implemented, the EU will have eliminated tariffs on 99% of its tariff lines. Our forestry sector will benefit from preferential access, which will allow us to provide technical services in the EU, including woodlot management, mapping, surveying, reforestation, timber evaluation, forest damage assessment, and logging-related services.

The government is now making the required regulatory changes to implement the CETA agreement. Once our domestic process has been completed, there will be an exchange of diplomatic notes with the EU to set the date for provisional application where all economically significant parts of CETA will be implemented.

Let me once again provide reassurance to the member for Selkirk—Interlake—Eastman that from day one that this government has been in office, we have made softwood lumber a top priority. Yes, we can agree that a new softwood lumber agreement is the best way to bring predictability and stability to the industry on both sides of the border, but we are not going to accept just any deal. It has to be a deal that is in the best interest of the Canadian industry. We continue to engage at the highest levels in this important issue, because it is a matter of Canadian jobs and communities. It is a matter of prosperity and of fairness.

[International Trade, June 12th, 2017]

Mr. Speaker, quite simply, yes.

As we have told Canadians many times, we are prepared to enter into negotiations at any time. Trade agreements must evolve in step with the economy. As everyone knows, NAFTA has been amended 11 times since its first iteration.

The Prime Minister has already spoken to the President of the United States about 10 times on this important issue. We will always stand up for our national interests and Canadian values.

[International Trade, June 12th, 2017]

Mr. Speaker, simply put, yes, we will.

Trade agreements need to grow and mature, as the economy grows and matures. NAFTA has been tweaked, modified, and amended 11 times since its inception. We have invited Canadians to share their ideas and priorities on the modernization of NAFTA by going on to the applicable websites.

We will always stand up for our national economic interests, Canadian values, and Canadian jobs.

[Softwood Lumber, June 8th, 2017]

I agree, Mr. Speaker, the previous Conservative government allowed the agreement to lapse. The Department of Trade's taxable countervailing duties are punitive and unfair. We will go before the courts and we will win, as we have every time. This will be the fifth time.

The Prime Minister spoke with the President at the G7 summit and on many other occasions. We want a good agreement, not just any agreement. That takes time, but we will come out on top.

[Business of Supply, June 8th, 2017]

Madam Speaker, of course, we support nuclear disarmament agreements.

What my hon. friend is proposing is to negotiate a nuclear weapons ban without those countries that have nuclear weapons participating. That would be pointless. This is not something that would result in real change.

Of course, our goal is nuclear disarmament and we are doing what it takes to achieve it. This means working hard to get tangible results. In this respect, I am very proud of Canada’s approach.

[Business of Supply, June 8th, 2017]

Madam Speaker, I would like to thank my hon. colleague for the great question and the chance to lay out the pragmatic approach to which she referred that Canada has taken to achieve worldwide nuclear disarmament in co-operation with our friends and allies, both those who have nuclear weapon systems and those who do not.

Our government believes that in order to convince nuclear powers to get rid of their weapons we must take this step-by-step approach. We are leading on a UN resolution that is doing just that, bringing nuclear powers to the table and working gradually toward disarmament. Not only do we lead through the UN system to make sure we advance toward this goal, we are also taking concrete actions. For example, Global Affairs has a program with respect to the mass destruction non-proliferation treaty with a view to prevent weapons of mass destruction from falling into the hands of terrorists. This program is called, not surprisingly, the weapons of mass destruction threat reduction program, and receives funding of $73 million per year.

We also support Norway's initiative to create a group of government experts on nuclear disarmament verification, something that is needed. These stations, which I referred to earlier with respect to monitoring, need support, sustenance, networking, and cannot be stand-alone. Without this weapons verification system ability to track explosives, very few of the nuclear states will disarm.

As well, in 2016, for the first time ever, Canada rallied 159 states to support and pass the resolution that my hon. colleague referred to, the fissile material cut-off treaty. With the support of nuclear and non-nuclear countries, this was a first and we chaired it.

[Business of Supply, June 8th, 2017]

Madam Speaker, I would like to remind the House that Canada is one of the very few nations in the world that gave up its nuclear weapons capability. It was the Bomarc system, of which I think most are well familiar. This was groundbreaking. It represented the will, the desire, and indeed the need of Canadians to take a firm stand, all of which was highly admirable.

However, in that context, as members of NATO, we have relied on and stood on the shoulders of others who have nuclear weapons deterrent capabilities, which, for good or bad, I think mainly good, prevented an outbreak of nuclear war until now. Where the nuclear doomsday clock stands in terms of its hands moving toward midnight is a matter of scientific opinion. However, the point is that it obviously has not crossed that threshold of midnight.

In that sense, although it has been a hideous expense, and of course we are well aware of the two tragic utilizations of nuclear weapons under wartime conditions, specifically in Japan, and the horrific casualties that ensued, we have brought peace and stability under a very fractious world system. Unfortunately, right now, international security circumstances are such that those nation-states that do have nuclear weapon systems are probably not going to be convinced in any way, shape, or form by motions through this government to disarm. Instead, we have chosen to put skills, expertise, personnel, and money into those technical aspects.

[Business of Supply, June 8th, 2017]

Madam Speaker, in the main, Canada absolutely believes in the principle of nuclear disarmament. As a former soldier, and one who is trained in the NATO systems, and who many years ago took a nuclear fire planning course to employ tactical weapons systems in conjunction with our American allies, I am fully aware of the potential tragic impact that such weapon systems, if ever utilized, would bring not only to local battlefield circumstances but indeed the world.

Having said that, Canada's approach is pragmatic, realistic, and is going to be effective in conjunction with our friends and allies. It is illogical to expect friends and allies who do possess nuclear weapons, and on whose shoulders the whole idea of deterrence has rested for many decades, to actually be able to co-operate meaningfully with those who are just interested in making statements. That is why our efforts, which involve providing technical skills, scarce resources, and money to those technical aspects involved in establishing the frameworks for future dialogue are so important.

Nuclear disarmament is an excellent ideal, but unfortunately, tragically, because of international security conditions and rogue states, such as North Korea, it is not possible over the short term.