Mr. Speaker, I welcome this opportunity to address the motion before the House today. I would like to start by underscoring a rare moment of unanimity from the speeches and questions earlier today. We all disagree about a lot, but I think we all agree about the importance of the softwood lumber industry to our country. I want to start by saying that it is great to have a chance to talk about it. As Minister of International Trade, I want to assure all members of the House and Canadians how strongly personally committed I am to this issue.
I would also like to respond directly to a comment made by the member for Kamloops—Thompson—Cariboo. She talked about members, for example from downtown Toronto ridings, and issues they may or may not be familiar with. I am very proud of the number of downtown MPs we have on this side of the House, and as we have already heard from my colleague from Scarborough—Agincourt, very many of them have a deep familiarity with issues ranging across our country's geography and economy. I want to say for the members opposite and for all Canadians who are listening that I personally am very proud to represent the amazing downtown Toronto riding of University—Rosedale. I am equally proud of my own background, having been born and raised in Peace River in northern Alberta. I am personally extremely familiar with and very emotionally connected to the rural economy of this country. One of the things I take greatest pride in, as the Minister of International Trade, is fighting for our rural economy. I want Canadians to know that.
Let me talk a bit about the softwood lumber industry and how important it is to our country. Communities across the country, particularly in rural areas, depend heavily on this sector, which employs nearly 200,000 Canadians. In 2015, 69% of Canada's softwood lumber exports went to the U.S. which continues to be our largest export market despite excellent work by the industry to expand our markets, particularly in Asia but also in Europe. CETA, which I am working very hard on, could expand those markets further. Softwood lumber production is a driver of economic growth in Canada. It contributed more than $20 billion to our GDP last year, and maintaining access to the U.S. market is essential.
However, I would like to note that it was under the previous Conservative government that the old softwood lumber agreement expired, on October 12, 2015, when the previous government was still in office. I would like to take this opportunity to share with the House the details of a briefing I had nearly a year ago when we first formed government. I was astonished to learn in one of my first briefings by trade officials that the Conservatives did absolutely nothing to try to negotiate a new deal with the United States, even with the expiry date fast approaching. There was no outreach, no meetings, no telephone calls, and no action to try to protect the thousands of Canadians who work in this essential industry. The deadline was looming and the Conservatives sat on their hands.
Our government, by contrast, understands how important this industry is to Canada, and unlike the previous government, we have been engaged, starting with the Prime Minister, from day one on this issue. The Prime Minister raised the issue of softwood lumber in our first bilateral meeting with President Obama in Manilla last year. It was a key issue in our state visit to Washington in March. It was a key issue when President Obama came to Canada in June. We have been on this issue at the highest level. My negotiators were in Washington last week working on the softwood lumber issue. I spoke with Ambassador Mike Froman at length on Friday and I will meet with him again in person in Europe later this week. We are very engaged.
I want to take this opportunity to publicly thank and commend the work of our ambassador, David MacNaughton; of our negotiators, who are working very hard on this fiendishly complex issue; and of the team at the Canadian embassy in Washington. I have been meeting with my U.S. counterpart, Mike Froman, repeatedly around the world, whether in Shanghai or just a couple of weeks ago in Toronto.
In 35 years, Canada and the United States have been in open conflict four times over softwood lumber. All the stakeholders knew that a new agreement would take time and a lot of hard work.
When I started working on this portfolio, I was shocked to learn that the Conservatives had not even begun discussions with the Americans on the renewal of the softwood lumber agreement. Precious time was wasted during which the Conservative government could have been moving this file forward.
That is why, immediately after I was appointed, I asked that extensive consultations be held with key stakeholders in the forestry industry, namely the provincial and territorial governments, small and large lumber companies, producers of various types of softwood lumber products, industry associations, unions, and representatives of indigenous groups.
Our government is therefore working very hard in co-operation with the provinces and industry representatives. The negotiating teams are in constant communication. They are in contact daily. The Canadian ambassador to the United States and I are personally involved in the discussions.
I met with my counterpart and industry stakeholders, as well as the workers. When I went to Saguenay, I had the opportunity to speak with them directly. It was very productive
Let us not forget that softwood lumber was a key aspect of the second state visit to Washington in March. My U.S. counterpart, the United States Trade Representative, and I were expressly instructed, and I quote, to intensively explore all options and report back within 100 days on the key features that would address the issue.
On June 29, following discussions outside the North American leaders' summit held here in Ottawa, the Prime Minister and the President of the United States made a joint statement reiterating their support for a mutually acceptable solution.
Both leaders agreed on nine key elements for a lasting and equitable solution, including exclusion provisions, regional outputs, and transparency, to name a few. This road map continues to guide the negotiations, which, I would like to point out, are ongoing.
On October 12, my American counterpart and I issued a statement indicating that the governments of the United States and Canada remain committed to continuing negotiations in an effort to achieve a durable and equitable solution for North American softwood lumber producers, downstream industries, and consumers.
We recognize that forestry management policies differ across the country, and we are taking those differences into account in our negotiations and as we work toward a national solution. We represent all provinces, including Quebec, the Maritimes, and British Columbia, and will ensure that their needs are reflected in an agreement that benefits all of Canada. Our goal is to sign a good agreement.
Even so, the opposition has been critical. Would it rather we signed a bad agreement? We Liberals are working to negotiate the best deal for Canadians.
MPs and Canadians need to understand that the Government of the United States cannot impose an agreement on its industry even if our two governments do settle on a deal acceptable to us both. That is because, for an agreement to be reached, the American industry must relinquish its legal right to impose tariffs on Canadian exports, a condition that further complicates negotiations.
Another factor that is making negotiations particularly difficult is the level of protectionist rhetoric in the United States.
With the election campaign under way, protectionism is gaining ground and influencing the media and the people. Despite the looming threat of American protectionism, the Prime Minister showed strong leadership during the G20 when he stood up for free trade and open society.
Also complicating matters is the most protectionist climate in the United States since the Great Depression. This is a serious moment and a serious trend. We are seeing it very much at play not only in the U.S. election but in Europe. We saw it in the lead-up to the Brexit vote, and there is a consequential election soon in Austria, where these themes are very significant.
What we are seeing around the world, both south of the border and in Europe, is a gathering protectionist wave, and it is mixed up with a lot of other things. It is mixed up sometimes with anti-immigrant sentiment. It is mixed up sometimes with xenophobia. This is a powerful backlash against globalization, and it is looking for a target. This broader political environment certainly complicates any trade negotiation, including this one.
Having said that, we are working very hard to secure export markets for Canadian producers, and we are succeeding. In fact, we started our mandate by working hard and successfully repealing protectionist COOL legislation in the United States, notwithstanding the comments made by the member for Battlefords—Lloydminster. I was rather surprised to hear him raise this issue. They did not get the puck in the net on COOL. Our government did, and I was very proud to secure that access for our ranchers. We then secured access for Canadian beef in Mexico and in China, which was another real victory for our producers. Finally, we had last month's absolutely breakthrough agreement on securing access for canola exports to China through 2020. This is terrific news for Canadian farmers, including my dad, who hopes that the snow melts off his swaths of canola and that he can finish harvesting this fall.
Canada is pushing back hard against the anti-trade sentiment, and we are securing some tangible wins for our producers. However, we in this House are all very aware of the real challenges. Despite these challenges, our government is doing everything possible to find a solution on softwood lumber that works for industry and safeguards the interests of all Canadians, whether in Atlantic Canada, Quebec, Ontario, the Prairies, or B.C.
The negotiating teams speak on the phone almost every day. To date, my officials have had formal meetings with U.S. officials on 16 occasions, most recently last week in Washington. My officials have had more than 65 meetings with Canadian stakeholders, including provinces and industry.
To further understand the views of the industry on both sides of the border, and to move negotiations forward, Ambassador Froman and I hosted a round table with the U.S. industry in Washington, D.C., last month. Then, on October 5, we hosted a round table with the Canadian industry in Toronto. Our Canadian meeting included small and large producers from across the country, including a first-nations-owned business. These meetings shed valuable light on the concerns of both sides as well as on areas where we share similar views, including our joint desire to grow the market for softwood lumber products within North America and abroad.
On October 12, Ambassador Froman and I released a joint statement in which we agreed to continue negotiations and to work to meet the mandate agreed to by President Obama and our Prime Minister when they met in Ottawa in June. In this mandate, our two leaders agreed to nine key features of a durable, equitable deal. Those features include provisions for exclusions and regional exits, to name just a few.
While my officials continue to engage diligently in negotiations, and I am very personally directly involved in that work, we are at the same time preparing for litigation. Should we have to fight, we will be ready to do so. Our softwood lumber producers and workers have never been found in the wrong. International bodies have always sided with our industry in the past.
Canadian officials have been working closely with provinces, territories, and industry since I became minister to prepare for possible U.S. trade action against our softwood lumber products. We are also preparing for the possibility of subsequent litigation at the WTO and under NAFTA. This work has included hiring economic experts, gathering evidence, monitoring U.S. trade law, and preparing our briefs.
While I, personally, and our government are ready to fight in the courts, negotiating an agreement that is good for Canada is the best way to secure stability and predictability for our industry. We will continue our unflagging efforts on this front.
One of our government's top priorities is the economic well-being of the hundreds of Canadians and the hundreds of thousands of families across Canada that depend on the forestry sector and on softwood lumber exports to the United States. That is why we are working so hard to find a solution to the softwood lumber issue.
Let us be clear about what the opposition is asking us to do here today. It is asking us to agree to a deal right now. To do that would mean agreeing to the inadequate deal the U.S. industry is putting forward today. We will not do that. I will not do that. We will keep fighting for the best deal for Canada and for Canadians.
We want a good deal for Canadians, not just any deal. We are hoping for the best and working for the best, but we are preparing for the worst. We are prepared to fight for and defend our industry and our workers in the courts if that is what it takes.
I would like to close by assuring this House, and above all, by assuring Canadians, that the Government of Canada is prepared for any situation and that we are working vigorously and tirelessly to defend the interests of Canadian workers and Canadian producers.
