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Mrs. Brenda Shanahan (Châteauguay—Lacolle, Lib.)

Apr/8/24 6:21:03 p.m.
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Madam Chair, I would like to thank you for the opportunity to participate in this important take-note debate and to speak about the significant actions the government has been taking to support Canada's interests in the ongoing softwood lumber dispute with the United States. First of all, I can assure members that we are in constant dialogue with the U.S. government at all levels to convey the importance of reaching a satisfactory resolution to this long-running dispute. We have made it abundantly clear that Canada believes a negotiated settlement with the U.S. is in the best interests of both our countries. However, we will only accept an agreement that is in the best interests of our softwood lumber industry, our workers and our communities. Such an agreement has to make sense for both sides. Reaching an agreement that protects Canadian jobs is a priority, because the forestry industry plays a vital role in the Canadian economy. Domestically, it helps create jobs for hundreds of thousands of Canadians and generates significant revenues for rural and indigenous communities across the country. What is more, it provides essential commodities that are used in a multitude of industries, from construction to paper to lumber products. In Quebec specifically, the forestry industry is a major economic pillar that supports tens of thousands of direct and indirect jobs in various regions such as Saguenay—Lac‑Saint‑Jean, the north shore and the Gaspé. It also contributes to the vitality of regional communities by providing economic opportunities and promoting regional development. In short, the forestry industry is much more than an economic sector. It is a key aspect of the identity and prosperity of Canada and Quebec. Historically, the United States has always relied on imports of Canadian lumber to fill the gap between its domestic production capacity and domestic demand for lumber. Canada has always been a stable and reliable supplier of high-quality products for American consumers. For example, imports from Canada have historically met about one-third of U.S. demand for softwood lumber. In 2022, 90% of Canada's softwood lumber exports went to the United States, at a value of $12 billion. Now more than ever, Canadian softwood lumber products are essential for addressing insufficient production and the affordable housing shortage in the United States. It is clearly counterproductive to impose unwarranted duties on such a large portion of U.S. consumption when the U.S. is trying to combat rising inflation and housing costs, which is also an issue in the United States. The U.S. National Association of Home Builders has indicated that duties on Canadian softwood lumber exacerbate already high lumber prices and directly increase costs to consumers. American legislators on both sides of the political spectrum have even written to their government to say that a softwood lumber agreement is key to predictability in the housing market. Maintaining unfair duties on Canadian softwood lumber directly contradicts the United States' goal of making housing more affordable. What is more, these unfair duties benefit third parties to the detriment of our supply chains and our very resilient and integrated economies. Since imposing these duties for the first time in the current round of this dispute, rather than protecting jobs and companies at home, the United States has seen a surge in overseas imports from suppliers in Asia and Europe to fill the gap between supply and demand in the U.S. It is therefore easy to see that a negotiated settlement, which would bring stability and predictability to the softwood lumber industry, is the best outcome for everyone involved. That is what the current government has consistently advocated for, and that is what we will continue to do. Therefore, it is truly unfortunate that certain businesses in the U.S. lumber industry encourage some American decision-makers to impose duties on Canada's lumber exports and to refrain from meaningfully engaging in negotiations, preferring the continued disruption to lumber supply caused by these duties, to the detriment of U.S. consumers. The domestic U.S. lumber industry, as a pretext, contends that Canada is responsible for injury to its producers. Time and time again, neutral and impartial international tribunals have found that Canadian softwood lumber producers respect our international obligations. Nevertheless, our government continues to encourage the United States to return to the negotiating table to find a mutually acceptable agreement. Both the Prime Minister and the Minister of Export Promotion, International Trade and Economic Development have repeatedly stated that Canada is ready to hold constructive discussions on realistic solutions that would be acceptable to both parties. Minister Ng regularly discusses the softwood lumber dispute with her U.S. counterpart, Trade Representative Katherine Tai. Just recently, the minister stressed the importance of expeditious and impartial dispute settlement procedures under CUSMA as a means of resolving the situation. Unfortunately, we have yet to see any willingness on the part of the U.S. to commit to a lasting resolution of this long-running dispute. Furthermore, the Minister of Foreign Affairs raised this issue with U.S. Secretary of State Antony Blinken, while senior Canadian officials, including our ambassador to the United States, Kirsten Hillman, remain in constant contact with their U.S. counterparts. As we repeatedly continue to urge the United States to negotiate mutually acceptable terms, we are not just standing idly by. Canada is defending our industry, our communities and our workers and is actively using every other means available to resolve their disputes, including the remedies provided under international trade agreements, while supporting Canada's softwood lumber producers and the communities that depend on this sector. Our efforts have yielded results in the past and we are getting there again. Throughout the entire process, we have worked and will continue to work closely with provinces, territories, indigenous partners and industry stakeholders to ensure a united pan-Canadian approach to the dispute. As recently announced by the Prime Minister, the government has renewed its commitment to a team Canada approach and is engaging with the United States to ensure the continued prosperity and well-being of Canadians. Our strategy for ending the dispute centres on legal victories, strong partnerships and relationship building. With our allies in Canada and abroad, we are confident that we can reach a solution with the United States that benefits producers, workers and communities on both sides of the border.

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House Hansard - 295