Mr. Speaker, I thought you were going to ask me to ask a question of my colleague, the Minister of International Trade, whom I commend for his extraordinary work. I would have liked to ask the minister how the union presidents and entrepreneurs in his region reacted to the measures that we implemented and that he listed. I can say that his answer would have been quite clear. Entrepreneurs are satisfied with the measures we have implemented. I will have more to say about that in the next few minutes.
I would like to reassure my opposition colleagues, notably my colleague from Richmond—Arthabaska, that the softwood lumber issue is an absolute priority for our government. I will say it again. It is an absolute priority. As the Minister of International Trade said earlier, we are proud of our world-class forestry sector. Canadian forestry companies employ more than 230,000 Canadians across the country, often in rural regions, where they play a key role in the economy by employing hundreds of middle-class workers. That is the case in my riding, Avignon—La Mitis—Matane—Matapédia. Our businesses and our economy largely depend on forestry, and I am very proud of our entrepreneurs’ work in the forestry industry.
The forestry sector is clearly a major contributor to Canada’s economic growth, contributing more than $21 billion to the country’s GDP. We have worked hard to diversify our export markets and to offer the highest quality Canadian products around the world. These measures have created excellent opportunities for Canadian businesses in Asia, particularly in China. The United States is obviously the primary destination for Canadian softwood lumber exports. In 2016 alone, 78% of such exports were destined for the United States, with a value of more than $7.6 billion. It is therefore essential that we maintain stable and predictable access to the American market if we want our softwood lumber industry to continue to prosper and if we want Canadian workers to keep their well-paid jobs. That is why the softwood lumber file has been an absolute priority for our government since our first day in office.
As soon as he took office, the Minister of Foreign Affairs, who was then Minister of International Trade, asked for broad consultations with the main stakeholders in the softwood lumber industry, including provincial and territorial governments, small and large softwood lumber businesses, producers of various types of softwood lumber products, industrial associations, unions, and representatives from indigenous groups.
In my region, particularly in Amqui, Carleton-sur-Mer, and Gesgapegiag, I have had the opportunity to consult with various stakeholders and entrepreneurs who are working hard to grow their businesses. I have met with them, along with some of my colleagues who are here in the House, to listen to their concerns and determine how our government can support them in concrete ways in the development of their businesses. They made some good suggestions. Later, I will talk about concrete measures that our government has taken.
In order to assist us, federal public servants have gone across the country to meet in person with stakeholders who clearly indicated that they supported the negotiation of a new agreement that reflects the bests interests of Canada. However, those stakeholders warned that it was better to not enter into an agreement than to enter into a bad agreement.
Our government then worked to negotiate a new agreement with the United States. Negotiations began in January 2016 and are continuing at a good pace. In just 12 months, our two countries held approximately 20 in-person meetings and numerous conference calls to advance discussions. Our government has raised this issue with the highest representatives of the American government and will continue to do so.
The Prime Minister has spoken with President Trump about softwood lumber on numerous occasions, including last week on his trip to Washington on October 11. The Minister of Foreign Affairs has personally assumed responsibility for this file since the start of the negotiations. She has raised this important issue with the American Secretary of Commerce at every opportunity. As a result of that high-level political engagement, this crucial file remains on the political agenda in the United States.
Close collaboration between the provinces and territories and the industry, as well as their active engagement, are at the heart of our management strategy in this important file. The minister and federal officials, as well as the hon. members on this side of the House, have made a sustained effort to establish dialogue with Canada’s largest exporters and principal producers, such as remanufacturers and manufacturers of specialized softwood lumber products.
Furthermore, as part of our government’s efforts to establish nation-to-nation relations with indigenous groups, measures were taken to consult first nations representatives, particularly those in the sawmills belonging to these groups. We held various types of consultations, including consultations in person, regular updates in advisory forums for governments and the industry, official and informal bilateral meetings, and telephone calls with premiers and ministers across the country.
The government’s efforts have clearly paid off. Provincial governments and industry representatives have publicly congratulated our government on the firm resolve it has shown in this file. The close ties between our government and the provinces and territories and the industry have allowed Canada to speak with one voice at the bargaining table, which has strengthened our position.
This united front was confirmed last August, when provincial envoys from British Columbia, Alberta, Ontario, Quebec and New Brunswick met with the ambassador in Washington to clearly demonstrate that the provincial governments stand together with the federal government in this matter.
Although Canada consistently defended its interests at the bargaining table, the United States was unwilling to accept the conditions that were acceptable to Canada. I would like to point out that, although we would prefer to reach a new agreement that will give our industry more stability and predictability, we will not sign an agreement that causes considerable permanent damage to our industry and our workers. Our position is very clear: we want to reach a fair and balanced softwood lumber agreement with the United States. However, I repeat that we will not accept just any conditions. We will continue to work very hard for our industry. There are too many jobs at stake.
With that in mind, I would now like to outline the measures we have taken. I would remind those who claim that the Government of Canada is not committed to standing up for the interests of the forestry sector and its workers that we have allocated a total of $867 million in direct support for the industry, its businesses, and its workers, naturally. This support is made available through the Business Development Bank of Canada and Export Development Canada, and I have personally spoken with stakeholders in my riding to make absolutely sure they were all well aware of the measures being offered.
The interesting thing to note is that there has been a steady rise in lumber prices in Canada over the past few months. Two-by-fours, for example, have gone from roughly $500 to $650 per 1,000 board feet. Obviously, that means more money for the industry, and other domestic industries will benefit as well, since local businesses will have to hire in order to increase production. In light of all of the devastation that has been wrought upon the United States, the demand for softwood lumber keeps going up, which is good for prices and, in turn, for our business community.
We want to reach an agreement with the Americans and thus bring some stability to the market. I can assure the House that our government has made this file its top priority and that we will keep working to ensure that the softwood lumber industry continues to grow, while still looking to diversify our markets and foster innovation. We are very proud of our Canadian industry.
