Mr. Speaker, securing a new softwood lumber agreement with the United States that works for all of Canada is a priority for the Prime Minister and our government.
The forestry sector is an essential part of the economic prosperity of the country, including the provinces of New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island. The Government of Canada is fully aware of the vital role that the softwood lumber industry plays in Atlantic Canada.
This is why the Minister of International Trade, the parliamentary secretary to the Minister of International Trade, and officials from Global Affairs Canada have been collaborating closely with the industry and the provincial governments of the Atlantic provinces.
The Atlantic region, often referred as the Maritimes in a softwood lumber context, has a long-standing and unique position in the ongoing trade dispute between Canada and the United States. This century-old irritant in the bilateral trade relationship is rooted in differences in forest management practices in each country.
In the United States, most timber is harvested from private lands, with the cost of timber determined by the market. In Canada, the majority of forests are publicly owned, which would be about 92%, and provinces employ a range of administrative mechanisms to determine the market-based rates that are charged to industry for harvesting from crown lands. However, the U.S. lumber industry has argued that the price charged by provinces is a subsidy to Canadian lumber producers. We reject such assertions out of hand. Canadian lumber is market priced.
However, the Maritimes are exceptional, in the fact that a significant percentage of timber in this region comes from private lands. Furthermore, the price for crown timber in the Maritimes has been, and continues to be, based on a large pool of private transactions.
Over the past 35 years of the softwood lumber dispute, the United States government and the U.S. industry have consistently acknowledged that the lumber sourced from the Atlantic region was not subsidized. Exports of softwood lumber products from the Maritimes had never been found to be subsidized in any previous U.S. countervailing duty investigations into softwood lumber from Canada and have been excluded from every previous agreement.
This dates as far back as the 1987-88 amendment to the softwood lumber MOU, which was further enshrined in the 1996 Maritimes lumber agreement, also known as the maritime accord. The most recent chapter in the long-standing history of being excluded from the softwood lumber dispute was the 2006 softwood lumber agreement, under which softwood lumber products from the Maritimes, defined in the agreement as New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador, were excluded from export measures.
The Maritimes and the northeastern states have a centuries-old interlinked economic relationship. Much like Canada's relationship with the United States, the Atlantic region's relationship with New England is vital to the economic prosperity of both sides of the border. Forest products are a key part of that economic partnership.
The government has prioritized rebuilding Canada's important and strategic relationship with the United States, which has suffered over the last decade. Improving the tenor and tone of our bilateral engagement with the United States is critical to finding a solution to the softwood lumber issue. Ultimately, Canada, in collaboration with the four Atlantic provinces and all other provinces and territories, is focused on finding a durable and equitable solution, and one that benefits softwood lumber producers across Canada, as well as related industries and consumers.
The government understands the importance of the forestry sector and softwood lumber trade with the United States for the provinces of New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. The forestry sector supports over 19,000 direct and indirect jobs in communities in the Atlantic provinces. These are primarily in rural communities, and these jobs are vital to their regions.
In 2015, the Atlantic provinces exported 8.7% of total Canadian softwood lumber exports to the United States by volume, valued at approximately $495 million. The Atlantic softwood lumber industry is a major contributor to the broader forestry sector.
The government recognizes that softwood lumber is about more than dimensional lumber. It is about the success of an entire economic sector and of rural communities. That is why the government is working so hard to negotiate a successor softwood lumber agreement that will provide stability and certainty for forestry workers in Atlantic Canada and across the country. This government has worked closely with Atlantic Canada and will continue this dialogue as they move forward together.
The Minister of International Trade and officials from Global Affairs Canada have consulted extensively with government officials from the four Atlantic provinces, and with several industry stakeholders, including the Atlantic lumber producers.
All have been unanimous in their discussions with the Minister of International Trade that they would support an agreement that works for all of Canada. However, they have been clear that given the historical record and the fact that the maritime system remains effectively unchanged, the Maritimes should be excluded from future subsidy investigations and exempt from border measures under a future softwood lumber agreement, as the region has traditionally been.
That is why this government ensured that the leaders' statement on softwood lumber from the Prime Minister and President Obama last June clearly stated that a key feature in any softwood lumber agreement would have provisions for regions or company exclusions.
The governments of the Atlantic provinces and their industry have been clear about their interests in a new agreement, and this government has listened. The Prime Minister and the Minister of International Trade will continue to push for consultation and the continuation of the maritime exclusion as we negotiate with the United States.
Rest assured, this government will continue to defend the interests of Atlantic Canada's softwood lumber industry, and the industry as a whole, from coast to coast to coast.