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Decentralized Democracy

House Hansard - 8

44th Parl. 1st Sess.
December 1, 2021 02:00PM
  • Dec/1/21 9:15:07 p.m.
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You know, businesses in our regions are coping with losses, job shortages, and administrative costs. Some are on the verge of bankruptcy; some are already gone. The forestry sector in my region, Abitibi—Baie-James—Nunavik—Eeyou, is huge. You know, the Prime Minister went to Washington, there was talk about the return of the three amigos, but we all know what happened next. The minister is in Washington right now. Do you think we will be getting good news or more bad news?
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  • Dec/1/21 9:15:49 p.m.
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I would remind the member to address the Chair, not the members directly. The hon. member for Kelowna—Lake Country.
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  • Dec/1/21 9:15:55 p.m.
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Madam Chair, I am sure we are all hopeful there will be some solutions that come out of this. The last time there were highly publicized conversations between the trade minister, the Prime Minister and their counterparts, it was announced shortly after that these countervailing measures might be coming. We have seen the trend here. We are certainly hopeful that there will be some resolution. That is what we all want. Everyone in this House wants a resolution so we can give the industry certainty and stability.
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  • Dec/1/21 9:16:42 p.m.
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Madam Chair, the U.S. and Canada share the world's longest international border and have been allies for more than 150 years. This past year, the Prime Minister has been concerned with cross-border relations. He has been concerned with electric vehicle production and border carbon adjustments. He has been concerned with climate change in his own country, and he has not been very concerned with the softwood timber dispute. President Biden does not have much respect for our Prime Minister because former prime minister Brian Mulroney got deals done. Liberal prime ministers after him got deals done, and former prime minister Stephen Harper was actually managing to get exemptions for Atlantic Canada. Under the current Liberal government, New Brunswick, Atlantic Canada and all of Canada are facing more than double the tariffs that we were already struggling with. The Obama administration sent the Department of Commerce into a deep dive to determine how the United States could get something they wanted and how the country of Canada could not get something it wanted. The basic rules of friendship are to respect each other. This is an over 150-year relationship. We are two nations that have always managed to get something that is in the best interests of their nations. Right now the United States has no respect for our country because our Prime Minister is weak on the international stage. This is part of the problem we are facing right now. The Clintons gave the Prime Minister a nice endorsement at election time knowing how easy it would be for the Americans and their buy America campaign. Everyone worried about President Trump and talked about how bad Republicans were. This started under President Obama, and it has been doubled twice, now again under President Biden. This is actually a liberal agenda stemming from the United States, which our Liberal government here has no impact to counter. The forestry sector is crucial in New Brunswick, as it employs thousands of New Brunswickers. The government must stand by lumber producers for our communities. It has not been able to do it. The evidence is very clear. I have three or four mills in my constituency and many communities benefit. My father was a logger. My grandfather was a contractor. The forestry industry runs deep in my blood. There are a total of 24,000 jobs and the sawmill sector alone in New Brunswick is the foundation of those jobs. Tonight, I heard Liberal members across the floor standing up in total hypocrisy talking about how they are going to prevail. Where have they been when right now the evidence is that they have failed not once, but twice. Now we are expected to believe they are going to prevail. They are not going to be able to prevail because the Prime Minister is failing on the international stage. This one is affecting all of Canada. I would like to say to the people of New Brunswick and the people of Miramichi—Grand Lake that Conservatives are going to keep the government accountable because right now Liberals are unable to do any damage across the border. When we have a 150-year relationship, we should be able to say what is good for them, and what is good for us, and then make a few deals. They are the basic rules of trading. There has to be something that we are exporting to the United States that they depend on our country for. There has to be something more important than electric vehicles. The government across the floor has no interest in fixing this issue right now. Canadians were promised a renewed relationship by the Prime Minister and, instead, what do we get? An EV tax credit that threatens Canadian auto manufacturing, stringent buy America policies, measures targeting agricultural exports and actions against energy pipelines, which are contributing to skyrocketing energy prices, just like the inflation on everything else in this country. Now the United States is at it again, doubling tariffs on Canadian softwood. What is going to done about it? The hypocrisy from across the floor is that they will prevail. That sounds great. On behalf of the people of Miramichi—Grand Lake, I ask how they will prevail. Tonight I am proud to speak for New Brunswick and New Brunswick companies. We need a government that will put them first on softwood timber.
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  • Dec/1/21 9:21:45 p.m.
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Madam Chair, I disagree wholeheartedly with what the member is saying. The Government of Canada will in fact prevail, as we have done in the past on this issue. If we take a look at the origins of the debate, we are not going to do what Stephen Harper did and concede hundreds of millions of dollars to the Americas over this issue. No government in the history of Canada has achieved as many formal free trade agreements as this Liberal government has in the last six years. To say that we do not have that international relationship is bogus. Would the member not recognize that, at the end of the day, the industry needs to be supported, and this Liberal government will continue to support the industry here? We will fight the battle that needs to be fought so that Canadians and Canada will in fact prevail on this very important issue.
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  • Dec/1/21 9:22:45 p.m.
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Madam Chair, when former prime minister Stephen Harper signed the first deal in 2006, the esteemed member across the floor, in his prevailing ways, comparable to sunny ways, actually voted against it. How shameful is it to stand in this House after failing every softwood lumber company in the country and talk about something when the Liberals failed in 2006? The Liberals are going back all these years on something they have failed on. That is total hypocrisy in the House of Commons. The Prime Minister has to show leadership here, and he has not done it. He has not been able to do it. Obama started it off. He could not build a relationship with Trump. Now Biden, and no pun intended, has taken the Prime Minister to the wood shed, and every softwood lumber company in our country is feeling the effects of that right now.
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  • Dec/1/21 9:24:11 p.m.
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Madam Chair, several factors are playing into this. One is definitely the diplomatic fiasco I talked about earlier, and another is a kind of bad faith on the Americans' part. That is undeniable. Generally speaking, Quebec did its part to implement a system that complies with the free trade rules. Unfortunately, the system is undermined by other provinces' stumpage fees. That is the conclusion we came to. Does my colleague think Quebec's unique system should be recognized as such during future negotiations?
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  • Dec/1/21 9:24:56 p.m.
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Madam Chair, I am sure the member has a valid point in terms of his own province, and I would dare say the member knows more about his own province than I do. However, every province in Canada is suffering because of the Prime Minister's inability to forge a relationship with the country that is supposed to be our very best friend. If the United States is our best friend, our country should be able to forge that relationship, whether we are Liberal or Conservative or Bloc or anything else. That should not matter. Right now, we have seriously been taken to the wood shed by the United States, and the Prime Minister has done nothing but talk about the climate crisis and electric vehicles. Now everybody is suffering because of that.
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  • Dec/1/21 9:25:51 p.m.
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Madam Chair, this has been very instructive. Tonight I got to meet the Liberal softwood caucus, with the representatives from downtown Toronto and suburban Toronto and suburban Ottawa. They told us they were going prevail. They told us to call all our relatives and friends in the United States to say how unfair this is. We know we are in really bad shape on a trade deal when the Liberal softwood caucus is telling us to call our relatives and friends in the United States to say we are being picked on. That is not going to restore the jobs in my region or protect the mills that I have across northern Ontario. What I do not see from the government is any real commitment to the working class in forestry communities in this country.
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  • Dec/1/21 9:26:39 p.m.
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Madam Chair, I could not agree with the member more. Right now I have mills in my riding, the same as the member opposite. I agree with him. We need leadership from the Prime Minister. It has to supercede politics and political parties. We need real leadership. There is an inability by the Liberal government to provide it.
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  • Dec/1/21 9:27:05 p.m.
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Madam Chair, I will be sharing my time with the member for Fleetwood—Port Kells. As this is my first opportunity to speak in this House during this Parliament, traditionally we all thank our voters, I will thank them, but also pledge to do my very best to uphold both their interests and their dreams for Canada. Their interests do extend to softwood lumber and this issue. I know that causes some amusement, but we actually believe that an injury to one is an injury to all, and we can actually all be engaged in this issue equally and care. It may be that people in my riding use those products or they have a corporate interest in those mills doing well, but nonetheless, they care about this issue deeply and profoundly. I would also add that personally, I actually care about it a lot, having grown up as the son of a professional forester who worked in northeastern Ontario for some 40 years, providing softwood lumber for mills in northern Ontario. The fact that my education was paid for, at least in part, by my father's work in the forest industry means that I am committed to this issue personally and passionately. Because I live in an urban centre now does not make me any less committed to the working class, the people who build this country, in every sector, whether it is the extractive industries, the softwood lumber industry or other industries, including agriculture. The softwood lumber industry has been unjustifiably targeted by these U.S. duties once again. The softwood lumber dispute is not a new trade irritant between our countries; it is an ongoing one that flares up consistently and constantly. I will agree with every member in the House that it is not fair. It is unfortunate that our largest trading partner fails to see the harm that it is causing on both sides of the border. Our countries have a highly integrated forestry sector. It relies on predictability and stability to maintain the supply of lumber and meet the demand, which is incredibly high in the United States right now, and that is to make sure we have prosperous economies in both our countries. As a trading nation, Canada has rested and will always rest itself into the international rules-based order, and that trading system, which is dependent upon people playing fairly. We will try to ensure that Canada and Canadians receive fair treatment in the global market at all times. In a relationship as large and as important as the one we have with the United States, there are bound to be trade irritants. That is normal. Relationship building at all levels, respect for the rules-based trading system and enforceable trade dispute settlement mechanisms are the keys to resolving these irritants. I would say that this is not a partisan issue. I think in the House we all need to agree that we need to work together. The reason we were able to keep the trade dispute mechanism in the new NAFTA, in CUSMA is that Conservatives, NDP, Bloc Québécois and Liberals worked together with industry partners to ensure that we got the best trade deal possible. In fact, we improved upon the old NAFTA. We were able to keep that trade dispute mechanism alive, because we worked together. There is no failure of leadership here. There needs to be an engagement co-operatively with the imagination that I am hoping all members of the House will bring to this issue. We need to be working together on this. The Minister of International Trade has said very clearly that she wants help, she wants ideas and she wants to engage with every member of the House to ensure that happens. That means engaging with people we know who are legislators in the United States, so they hear the story of Canada and are reminded that their interests, as well as our interests, are bound together in this. They need our wood, as simply put as that. They need it. We have it. We will supply it well, and our industry needs to be effectively protected by the international rules-based order. We will do it. Our Prime Minister is committed to it. We are committed to it. I know the House is committed to it, and I look forward to working with members and their creative solutions that can only improve our approach on this issue.
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  • Dec/1/21 9:32:15 p.m.
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Madam Chair, I agree with the hon. member across the way that we have to work together, because the government has just failed to make this negotiation. We had so much time in the last six years to make this happen. President Biden said in his presidential run that he did want to continue the Trump tariffs on their allies. The U.S. Lumber Coalition last June said that it had not seen Canada come to the table. It said that it wanted to make a deal, but that Canada was not bringing it a deal. We have had all the time. The biggest thing we have in the negotiation is that we have the wood and the U.S. does not. It does not have enough domestic supply to supply its own nation. We have the negotiation tactics. Will the government go back with some harder negotiations to make the deal done for our Canadian softwood industry?
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  • Dec/1/21 9:33:05 p.m.
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Madam Chair, with all due respect, that is not the way international trade disputes work. The fact is that we will steadily and carefully take our case to the places where trade dispute mechanisms actually exist. I remind members of the House we have consistently won. This is because we are clear, we know where Canada stands on these issues, we listen to our industry partners, we are able to look at this issue in a holistic way and understand those mechanisms will work. I received criticism at one point from one of my colleagues because in a question in the last Parliament, I said that we will win. I used the definitive “we will win” in this dispute, and we did, and we will again because we will be careful, clear and consistent.
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  • Dec/1/21 9:34:02 p.m.
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Madam Chair, I listened carefully to my colleague from Don Valley West's speech, and I strongly disagree. He claims there was no failure of leadership, but there was. The United States said it was planning to double the duties long ago, in May. That was six months ago. What did the government do? It did not respond. Once again, we are in the same situation we have been experiencing year after year. They say we must go through the mechanisms. How many times has Canada sought recourse before the World Trade Organization? Its decisions are not binding. We have to raise our voice when our neighbours disrespect us. I will ask my colleague: What is the silver bullet?
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  • Dec/1/21 9:34:49 p.m.
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Madam Chair, I will simply repeat that we will not use bully tactics. We will use steady, careful negotiating tactics using the laws at hand, whether it is the WTO mechanisms, the CUSMA mechanisms or other trade mechanisms that are in place to ensure we have fair disputes. This is not a new situation. Whether it is in Canada, the United States or any of our trading partners, we are a trading nation and we understand domestic politics play in every country. We will continue to make our case politically as well as legally, and we will win once again.
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  • Dec/1/21 9:35:43 p.m.
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Madam Chair, I asked in question period the other day whether we could expect, for the first nations-owned lumber mill in my riding, to have the $20 million that have been withheld in tariffs returned to it through this process. The hon. member speaks of the process and playing it through to the end in an appropriate manner. Can this lumber mill in Saskatchewan that has $20 million tied up, which is not being used for first nations to provide social housing and other benefits to its communities, expect to get its $20 million back, and when it might happen?
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  • Dec/1/21 9:36:22 p.m.
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Madam Chair, the member will know very clearly I am not privy to that information. I do not know the facts of this particular mill. I am interested in it, though. I am interested in anything where the entrepreneurial spirit of indigenous communities of Canada can be unleashed and work. This government has been more committed than any government to ensuring indigenous companies, corporations and investment and employment opportunities receive not only fair treatment but the best treatment possible. I am happy to hear more about this. I am happy to take that to our own government to ensure we find a solution to it.
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  • Dec/1/21 9:37:13 p.m.
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Madam Chair, although this is not the first time I have risen in the House since we returned, I should take a moment to thank everybody in Fleetwood—Port Kells for sending me back here for a third time. I do not know if they just wanted me out town or if they really like the work that we have been doing, but I presume it is the latter. I am pleased to join my colleagues in defending our forest industry, and referring to the comment from my colleague for Don Valley West, this is what we are all here to do. We are all here to defend the sector, its workers and the suppliers, and a huge contributor to our economy across the country. We are dealing with the latest set of unfair and unwarranted duties by the United States. I think we can assure Canadians that we do have means at our disposal to defend the workers and communities that depend on the work that they do, which includes, by the way, indigenous people who, in many places, rely on this vital part of our economy. Canada will use all the methods at our disposal to combat unfair trade actions by the United States as we have at every stage of this dispute over the years. This includes legal recourse available under our bilateral trade agreements in the World Trade Organization. Time and time again, we have won. Panels in these venues have consistently ruled against U.S. duties. Our government will do whatever else we can to defend workers and communities, just as we did in 2017 when we came up with the $867 million softwood lumber action plan. That was a plan that focused on expanding markets and diversifying products, and on assisting workers, including those transitioning to other parts of the economy. In the long run, we have an advantage. We have a vast, healthy and unusually resilient forest ecosystem, with parts of B.C. this year being an unfortunate exception. We have an ecosystem that absorbs carbon pollution. In fact, there is no path to net-zero emissions that does not involve our forests. Our government has underscored this reality with a plan to plant two billion additional trees over the next 10 years. This is expected to reduce greenhouse gas emissions by up to 12 megatonnes annually by 2050. Canada is also taking global leadership in reversing tropical forest loss and land degradation. It makes sense that we are out in front in this area, because our strong system of forest laws, monitoring and enforcement ensures sustainable forest management practices across the country. Canada is home to 9% of the world's forest, but we have 36% of the world's sustainably managed forests. Canada's forests are monitored closely. Each year, the Government of Canada publishes “The State of Canada's Forests” annual report. It tracks a number of indicators pertaining to sustainability. The government will continue to work with industry, provinces and territories to protect and sustainably manage our forests, because that is our long-term advantage, but as today's debate highlights, we need to invest in order to encourage this industry's transformation. One example is the investments in the forest industry transformation program. It supported innovation for more than a decade and, to date, it has successfully funded 43 capital investment projects. These initiatives have secured approximately 6,600 forest-sector jobs and another 450 innovation-related jobs. The program supports forest-reliant communities and improves the environment and performance of the sector. These projects help diversify the forest product market through high-value bioproducts, such as bioenergy, biomaterials, biochemicals and next-generation building products. Budget 2021 recognized the program's success by injecting up to $54.8 million over two years starting this fiscal year to increase its capacity. We also recognize, as I said, how important this sector is to many indigenous communities, which is why we are investing to create forest-sector jobs as well as increased knowledge and economic opportunities. Normally when we are in a negotiation with somebody, we expect to deal with somebody who is rational. However, we have seen over the last number of years any number of irrational decisions made in the United States or by Americans. These are interesting and difficult times, but as my colleagues have suggested, we have the means at our disposal, the patience and the talent to get this over the line successfully.
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  • Dec/1/21 9:42:02 p.m.
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Madam Chair, I appreciate the speech from the member opposite. I just want to bring this back to the workers, those on the ground whose lives are impacted by this, because this is something we have seen in the Kenora riding throughout the course of this dispute. Just a couple of years ago, Kenora Forest Products had to lay off over 100 workers when its parent company filed for bankruptcy, citing the ongoing softwood lumber dispute. I mean this question in the most collegial way possible. What would the member want to say to those workers who have lost their jobs and their families who are looking for action from this government?
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  • Dec/1/21 9:42:48 p.m.
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Madam Chair, I have lived in many communities where forestry is a big industry, including in our riding where we have the Teal-Jones mill, which is a very large operation. Throughout Canada we have had these dislocations on the paper side and the lumber side, etc. There is no doubt that our industries are going through a transformation, and it is support through the transformation to new technologies, new innovations or perhaps simply new jobs in other sectors that would make a difference for these workers. That is what the federal government should and will be doing.
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