House Hansard - 47

44th Parl. 1st Sess.

March 28, 2022 11:00AM

Mr. Arif Virani (Parliamentary Secretary to the Minister of International Trade, Export Promotion, Small Business and Economic Development, Lib.)

Mar/28/22 6:34:51 p.m.
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Madam Speaker, I thank the member opposite for raising this important issue in the House. I just want to emphasize that the federal government is extremely disappointed that the U.S. Department of Commerce continues to apply duties to most exports of Canadian softwood lumber. Those duties are unfair and entirely unwarranted. They harm Canadian communities, of which the member represents in British Columbia, and the workers. They harm Canadian workers and Canadian communities right across the board, particularly the industries in Quebec and British Columbia, but also people who are purchasing homes right around this country. We understand that the softwood lumber industry is a key component of our highly integrated forest sector, and it is an economic anchor for communities around Canada. We know that Canadian interests in the softwood lumber dispute are best dealt with through a team Canada approach. Let me highlight this. What we are doing is that we are not taking a partisan approach and we are not taking the approach that favours a particular region. We are adopting this as truly a team Canada initiative and have done so continuously through our years in government. We are in close contact with provinces, territories, industry and other partners on how best to respond to the most recent U.S. decisions regarding duties on softwood lumber products. In January, the Minister of International Trade, Export Promotion, Small Business and Economic Development convened a round table with representatives from across the country to exchange views on Canada's approach to the softwood lumber dispute. One thing that is clear is that we stand by our industry and by the workers, and they can rest assured that Canada is actively contesting these unfair measures. What are we doing in the face of these unwarranted initiatives by the U.S. Department of Commerce? We have launched legal cases against the various U.S. decisions to date that have imposed duties on Canadian softwood lumber products. Under chapter 19 of NAFTA, Canada is challenging the 2017 U.S. subsidy and dumping determinations. These determinations are also the subject of WTO challenges. We are already seeing the results of those efforts at the WTO. In August 2020, the panel that adjudicated Canada's challenge of the subsidy determination found the U.S. duties to be inconsistent with the United States international trade obligations. Further, we are contesting, under chapter 10 of CUSMA, the first and second administrative reviews. I will pause parenthetically here. That is the very same provision under CUSMA that the official opposition, when CUSMA was renegotiated, urged us to abandon in order to get a deal done. Were it not for our determination in ensuring that the dispute resolution mechanism was entrenched, we would not have a vehicle for which to advocate for my friend opposite's very constituents and the industry she is purporting to advocate for. We are a reliable trading partner. In the past, all of these independent tribunals have consistently found that the United States allegations regarding softwood lumber are entirely without basis, meaning Canada has won at every turn. We will continue to litigate, because that is the route that is available to us. We believe that will ultimately be the case in this present dispute. In parallel, what are we doing? I reject categorically the categorization that was presented by the member opposite that we are somehow abandoning this issue or not making it a priority. To the contrary, we continue to engage on this issue with the U.S. government at every level. The Prime Minister has raised it with President Biden. The Minister of International Trade has raised it with her U.S. counterparts, that is U.S. Trade Representative Tai and U.S. Secretary of Commerce Gina Raimondo. An agreement is in the best interests of both parties involved, and we will only accept a deal that is beneficial to Canadian industry, Canadian workers and Canadian communities.

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House Hansard - 47