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Ms. Julie Dzerowicz (Davenport, Lib.)

Dec/1/21 8:46:06 p.m.
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Mr. Chair, I will be sharing my time with the member for Aurora—Oak Ridges—Richmond Hill. I want to thank all hon. members gathered here this evening to discuss yet another unfair trade action against an industry that deserves much better from our American neighbours. The softwood lumber industry is one of Canada's largest employers and has been throughout our history. It is woven in the sinews of our nation and a source of pride for Canadians. Many of the thousands of jobs are challenging and involve tough work in remote places, but the work is rewarding and contributes to the strength of Canada's middle class. It is especially vital to indigenous communities, whose relationship with our forests dates back centuries. Therefore, it is disheartening for these workers and their communities to face increased duty rates as part of the continuing, unfair and unwarranted U.S. trade action. Our government is deeply disappointed and we have expressed our frustration to our American counterparts at the highest levels. I hope all members will work through interparliamentary forums and use any and all contacts we all have, whether through business, family or friendships, to make clear our position across the border. It is imperative that we take a team Canada approach. Our shared message today is that these are unfair duties that are bad for workers on both sides of the border and they have always led to higher U.S. housing construction costs, something that no economy in the world needs right now. I can assure my colleagues that we have and will continue to vigorously defend our industry and its workers, and we are confident of success. Why? Because over decades, regardless of which party was in power, Canada has fought similar actions. These legal battles are expensive, lengthy and painful for vulnerable communities, yet trade tribunals have ruled consistently in our favour. While we are confident in our legal position, we must also do everything we can to help impacted communities, and our track record is strong. During the height of the 2017 dispute, our federal government launched a task force with our provincial colleagues right across the country to consult on ways to defend the industry and its workers, and their respective communities as well. We followed that up with the $867 million softwood lumber action plan. It included market and product diversification initiatives and programs to assist affected workers. We have continued to invest in this industry. In 2019, we renewed the forest sector competitiveness programs, an investment of $251 million over three years. These programs support market access and encourage innovation in order to create new opportunities for the sector. We have had numerous success stories, including many that have also advanced our federal government's robust plan to reach our 2030 and 2050 climate goals. We are seeing tall buildings go up in B.C. and Quebec, built principally from wood fibre rather than steel and cement. Car part components made of wood are also making vehicles lighter and more fuel efficient. We believe Canada can capitalize on an emerging global bio-economy expected to reach $5 trillion annually by the end of the decade. We have also made major investments to confront infestations of the mountain pine beetle, the spruce budworm and the emerald ash borer. There are many other examples to illustrate how our government has defended this industry and its workers, and that should give all members and all Canadians the confidence that we will do so again.

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Mr. Frank Caputo (Kamloops—Thompson—Cariboo, CPC)

Dec/1/21 8:50:43 p.m.
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Mr. Chair, the hon. member spoke at length about defending Canada and how her party, the government, was going to defend Canadian values when it came to trade and when it came to softwood lumber. She talked about defending it, but with respect, this is essentially a WHL team playing against an NHL team when it comes to defending. Just because the government wishes to defend Canadian values does not mean, with respect, that it is in the same league. What we have seen is precisely that. Six days after a meeting, the President elevated those tariffs, shutting down trade. When did the Prime Minister know this was coming? If he knew it was coming, why did he not do anything to prevent it?

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Ms. Julie Dzerowicz

Dec/1/21 8:51:52 p.m.
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Mr. Chair, I would like to believe that on this issue we are all on the same team. I think that we all have the same outcome in mind when we say we want this issue resolved. We are very disappointed by the results of the administrative review. We are very disappointed that the softwood duties have increased. We know that in a relationship that is as large as the one between Canada and the U.S. there are bound to be issues, but I can assure the member and all members of the House, as well as all Canadians who are listening, that we have, from the very beginning, indicated our issue with the increase of the duties with the Americans. We have stood up for Canadian businesses and workers. We have talked to President Biden. We have talked to Ambassador Tai. We have talked to Secretary Raimondo. We will continue to stand up for our forestry sector. I look forward to continuing what I want to say with the next question.

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Mr. Alexis Brunelle-Duceppe (Lac-Saint-Jean, BQ)

Dec/1/21 8:53:04 p.m.
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Mr. Chair, the forestry and lumber industry is critically important to my region and to Quebec. If we look around, we are surrounded by wood. Everything I touch here is made of wood. If wood is so important to the Liberal government, can my colleague explain why the federal strategy for oil and gas from 2018 to 2020 was allocated $14 billion a year, but the federal strategy for Quebec's forestry industry only got $71 million?

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Ms. Julie Dzerowicz

Dec/1/21 8:53:46 p.m.
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Mr. Chair, as I mentioned earlier, in a relationship that is as large as the one between Canada and the U.S. there are bound to be issues. Given the fact that we have $614.9 billion in two-way trade between our two nations, largely things are going really well between our two countries. This is one of the irritants that we have had, and it has been in place since 1982. It has escalated in recent weeks. I am really pleased to hear that Minister Ng is leading a team Canada group, including members from all sides of the House, to Washington to continue our government's advocacy and to stand up for Canadian interests. We will not stop until we resolve this issue. We will always stand up for Canadian businesses and workers.

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The Chair

Dec/1/21 8:54:45 p.m.
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I would just remind the member not to use the last name of one of the ministers. Questions and comments. I will have to choose the birthday boy, the hon. member for Central Okanagan—Similkameen—Nicola.

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Mr. Dan Albas (Central Okanagan—Similkameen—Nicola, CPC)

Dec/1/21 8:54:57 p.m.
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Mr. Chair, I certainly do appreciate the member for Davenport, but, realistically, she said that things were going well with the United States. We have issues with electric car batteries. We have buy-American provisions. We have softwood lumber issues. This is all going horribly wrong. We all may be on team Canada, but when the manager is not doing a good job of managing the team, the manager gets replaced. This has been a terrible thing. I quoted earlier how Fortune magazine said in May that the Biden administration was looking to double softwood lumber tariffs, yet here we are near the end of the year and the government acts like this is something new. People are asking about their communities? What about the forestry workers and the communities that rely on forestry and are being left to deal with these things by themselves? What does the member have to say about the fact that the government knew in May that these tariffs were coming?

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Ms. Julie Dzerowicz

Dec/1/21 8:56:05 p.m.
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Mr. Chair, I want to wish the hon. member a very happy birthday. I also want to assure him and everyone else in the House that we are interested in finding an outcome and a solution that is acceptable for industry and workers. We have consistently said that these tariffs are unfair and unwarranted, whether at the CUSMA panel or at the WTO, and we are going to continue to stand up for workers and the forestry sector.

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Ms. Leah Taylor Roy (Aurora—Oak Ridges—Richmond Hill, Lib.)

Dec/1/21 8:56:49 p.m.
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Mr. Chair, I am thankful for the opportunity to speak about the actions that the government has been taking to support Canada's interests in the softwood lumber dispute with the United States. First, as this is the first time I have risen in this 44th Parliament and, in fact, ever, I would like to start by thanking the constituents of Aurora—Oak Ridges—Richmond Hill for sending me here and for putting their trust in me. Despite some accusations to the contrary, I can assure members that we are continuously engaging with the Government of United States to convey the importance of a successful resolution to this dispute. We have been very clear that Canada believes a negotiated agreement with the United States is in both countries' best interests. However, we will only accept a deal that is in the best interests of our softwood lumber industry, our workers and our communities. A deal that protects Canadian jobs is a priority. The United States has always relied on imports of Canadian lumber to fill the gap between its domestic production capacity and the demand for lumber. Imports from Canada have historically met about one-third of U.S. demand. U.S. consumers need our lumber to build homes and other projects. It is clear that imposing unjustified duties on such a large portion of U.S. consumption is counterproductive in combatting rising inflation and housing costs. The U.S. National Association of Home Builders has highlighted that duties on Canadian lumber exacerbate already high lumber prices and directly increase costs to consumers. This is in direct contradiction to the United States' goal of increasing housing affordability. The association is able to see a solution to this problem that evidently the United States government has not yet realized. A negotiated settlement that brings stability and predictability to the softwood lumber industry is the best outcome for everyone involved. Unfortunately, the U.S. lumber industry encourages the U.S. administration to refrain from engaging meaningfully in negotiations, preferring the continued disruption to lumber supply caused by these duties, to the detriment of U.S. consumers and our workers. Nevertheless, our government has been persistent in encouraging the United States to return to the negotiating table to find a mutually acceptable agreement. The entire government is involved in this effort. The Prime Minister has personally raised Canada's concerns with President Biden on many occasions. The Minister of Foreign Affairs recently raised the issue with U.S. Secretary of State, and senior Canadian officials, including our ambassador to the United States, are in constant contact with our U.S. counterparts. The Minister of International Trade, Export Promotion, Small Business and Economic Development has taken a strong lead on these efforts. Earlier this week, she spoke with her counterpart, the U.S. trade representative, to discuss softwood lumber among many other important trade issues. The Minister of International Trade is actually in Washington, D.C., as we speak, where she will again work to advocate for Canadians and build partnerships with like-minded Americans. As with all Canada-U.S. trade irritants, we fundamentally believe that a win-win solution is possible. It serves neither Canadians nor Americans to put up unjustifiable trade barriers that harm our mutual prosperity. At the same time, the government will continue to vigorously defend Canada's softwood lumber industry and will stand up for our forestry workers and communities in every way possible.

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The Chair

Dec/1/21 9:01:13 p.m.
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Before we get to the next question, I want to ask everybody to tighten up their questions and answers. I am trying to allow everyone to get them in. We have gone over a couple of times. Questions and comments, the hon. member for Mission—Matsqui—Fraser Canyon.

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Mr. Brad Vis (Mission—Matsqui—Fraser Canyon, CPC)

Dec/1/21 9:01:37 p.m.
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Mr. Chair, I would like to thank the new member for Aurora—Oak Ridges—Richmond Hill for probably one of her first speeches. Right now, forestry workers in my riding do not want to hear rhetoric about a win-win because this has already been a loss-loss. They have already lost the jobs, the mills are already closing and forestry companies in B.C. like West Fraser are looking to go south of the border. Frankly, the government has had since 2016, when it started talking about signing a new deal, to get things done, but it has not. The other day I asked the minister in the House of Commons during an adjournment debate what positive steps she was going to take. I agree that she took a positive step today; she went to Washington, D.C. However, we have not outlined for industry a transparent process that it can look to for any type of certainty. Could the member please comment on whether she agrees that it has been way too long and the government has not acted quickly enough to support the workers in my riding and across British Columbia who are impacted the most by the lack of government action?

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Ms. Leah Taylor Roy

Dec/1/21 9:02:54 p.m.
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Mr. Chair, we all share my hon. colleague's concerns. Whether these jobs are defecting from our ridings or not, they are Canadian jobs and they are good Canadian jobs. We all agree this evening that we want to protect these workers and this industry, but this issue has been going on for decades, and the current round of irritants in this trade dispute has to do with American protectionism, quite frankly. We want to assure members that we are interested in outcomes that are acceptable for industry workers. Canadians elected us to work together, and I think we all agree that these are the outcomes we want. We are going to keep standing up for the workers and the forestry sector. Our government has consistently stood up for Canadian businesses and workers, and we are always going to fight for the best interests of all Canadians.

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Ms. Kristina Michaud (Avignon—La Mitis—Matane—Matapédia, BQ)

Dec/1/21 9:03:59 p.m.
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Mr. Chair, I would like to know what my colleague thinks of the liquidity program. In order to qualify, producers practically have to declare technical bankruptcy. Forestry workers in my region would like to access this program before reaching bankruptcy, in order to cover the tariffs. Does my colleague think that her government would prepared to make this program accessible to workers?

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Ms. Leah Taylor Roy

Dec/1/21 9:04:31 p.m.
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Mr. Chair, of course no one wants to see any of these industries fail or these businesses shut down. Our government has always fought for workers and industries in Canada. I know we will do whatever it takes to keep these industries open and working and to keep these workers employed.

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Ms. Bonita Zarrillo (Port Moody—Coquitlam, NDP)

Dec/1/21 9:05:07 p.m.
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Mr. Chair, as this is a take-note debate, I want to ask about a gender lens on these negotiations. However, before I do that, I will recognize the skills of the Quebec forestry and mill workers who came to my riding in the early 1900s to start the Fraser mill, which is no longer in place. I definitely want to recognize them, as well as the skilled forestry workers, the Sikh and Chinese immigrants who came to my community in the early 1900s. This year, the gender equality in forestry national action plan wrapped up. I am wondering if there was or can be a presentation of this work in the U.S. negotiations so the Americans understand how important this diversity work is in this sector.

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Ms. Leah Taylor Roy

Dec/1/21 9:06:00 p.m.
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Mr. Chair, I believe that the lens on gender equity is very important. The government will be making its appeals and presentations with that in mind. Our government is a feminist government committed to making sure there is gender equality, and I know this is very important to all ministers and all parties involved.

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Mrs. Tracy Gray (Kelowna—Lake Country, CPC)

Dec/1/21 9:06:32 p.m.
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Mr. Chair, I will be splitting my time with the member for Miramichi—Grand Lake. While I am pleased to have the opportunity to speak today, it is unfortunate that we are here late tonight having this take-note debate on softwood lumber as a result of the Liberal government’s continued mismanagement of our relationship with the United States. Softwood lumber is a critical industry across the country, particularly in my home province of British Columbia and in the Okanagan. Workers in ths sector have been looking for certainty and stability through the finalization of a new softwood lumber agreement. The last softwood agreement, negotiated and signed by a previous Conservative government, expired in October 2015. Despite the Liberal Prime Minister pledging to negotiate a new agreement after the Liberals formed government, six years, four trade ministers and three different U.S. administrations later we are still waiting. The Liberals also failed to negotiate softwood into CUSMA. Last February, because of my role at the time as shadow minister for international trade, I led, on behalf of our Conservative caucus, the forming of a special committee on Canada-US economic relations, as there were so many serious issues the Liberals were mismanaging. The softwood lumber sector had seen thousands of people lose their jobs. Despite the Prime Minister touting his relationship with the U.S. administration and President Biden, that same administration has now formally announced a doubling of tariffs for our softwood lumber sector. Our relationship is strained, and instead of moving softwood lumber issues forward, they have gone backward. The trade minister's inaction on getting a new softwood agreement with the U.S. is devastating for small businesses and workers in forestry. My community has seen this first-hand. Kelowna-Lake Country used to have a thriving forestry sector, with good jobs and many in the community relying on its success. However, uncertainty and poor market conditions led to over 200 people in my community losing their good jobs at the mill over the course of two years, and the final blow was the mill closure in 2020, a mill which had operated and supported families for over 80 years. Close to 10,000 businesses, large and small, provide services across the value chain for the forestry sector in British Columbia. They rely on the sector thriving to make their payrolls, employ workers and reinvest in their communities. Despite the U.S. announcing its plans to increase countervailing duties on softwood lumber last May, we have seen no concrete evidence that the Liberals made any effort in that time to convince the U.S. that these duties are unjust. The Liberals had five months to act, and what we saw in that time is they were prioritizing an unnecessary election instead of acting for Canadian forestry workers this summer. On top of this, our supply chains with the U.S. are integrated, and this uncertainty has led to higher pricing, which ultimately leads to higher construction costs. The Conservatives have pressed the Liberals to act time and time again. Last spring, when the U.S. announced its intent to double softwood tariffs, my Conservative colleagues and I called an emergency meeting of the international trade committee to hear what actions the trade minister had taken and was planning to take to stop these countervailing duties from happening. What we got instead was the trade minister unable to tell us of any action she had taken, not even whether she had met with U.S. counterparts following the countervailing duty announcement or whether she had discussed it with the ambassador to the U.S. When I asked the trade minister last spring why she was not acting on U.S. plans to double softwood duties, she said she was disappointed that the U.S. was doing this. These are comments she has made again. In a readout of a meeting the trade minister had with her U.S. counterpart yesterday, she once again said that she voiced her disappointment. Being disappointed is not equivalent to taking action. If I were to tell a B.C. forestry worker not to worry as the minister has expressed her disappointment to the U.S. administration on softwood duties, I highly doubt they would find that overly reassuring. Being disappointed will not magically resolve the softwood dispute. We need to see concrete action from the trade minister and the Liberal government to get a new softwood agreement. Our forestry sector depends on this, and it is time the Liberal government takes this seriously, as it is part of our country’s economic recovery.

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Mr. Eric Melillo (Kenora, CPC)

Dec/1/21 9:11:21 p.m.
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Mr. Chair, my colleague from Kelowna—Lake Country mentioned how important the industry is to British Columbia, and the local impact. An aspect we cannot stress enough is that these are jobs, these are livelihoods. It is more than just the overall economy that is at stake here. I am wondering if she can expand more on the local concerns, some of the things she has either heard from those in B.C. or heard from her colleagues on what is happening on the ground in their ridings.

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Mrs. Tracy Gray

Dec/1/21 9:11:58 p.m.
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Mr. Chair, as I mentioned, we have seen job losses in my community. There were people who had worked at the mill for 15, 20, 25, 30 or 35 years and all of a sudden they are out of work. This was their profession. There are not a lot of other options available for them. We do know as well that, when we look at production in North America, production still exists. What we have seen, though, is loss happening in Canada and increases going to the U.S., so we are losing business to the U.S. What this is doing is causing so much uncertainty in the industry. There is not a lot of confidence to invest here in Canada and to keep those jobs here. This is why a softwood lumber agreement would be so important.

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Mr. Kevin Lamoureux (Winnipeg North, Lib.)

Dec/1/21 9:13:03 p.m.
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Madam Chair, what is happening is not right and it is not fair. Unfortunately, and sadly, this is not the first time this has happened. It has happened on several occasions where the wealthy elite within the industry, stakeholders and lobbyists in the United States are successful. Canada has been successful in terms of getting the matter resolved and being there for our industry. Once again, unfortunately, the Canadian government does have to step in, get involved and break down the barriers to take it wherever it needs to be taken. I am hoping that the members on all sides of the House will concur that, at the end of the day, this House will unite and ensure that Canada prevails on this very important issue.

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