QUESTION PERIOD — International Trade
Softwood Lumber
May 27, 2021
I have a question for the government leader as well. There are many urgent issues that have been put on hold or set aside because of the COVID pandemic, but this is quite a serious one, leader. On Friday, the U.S. Department of Commerce announced plans to more than double its countervailing and anti-dumping rates later this year on softwood lumber imports from Canada, from 8.99% to 18.32%. That’s more than double. The B.C. Lumber Trade Council said in response:
We find the significant increase in today’s preliminary rates troubling. It is particularly egregious given lumber prices are at a record high and demand is skyrocketing in the U.S. . . .
Leader, Minister Ng has said the Government of Canada will vigorously defend its forestry sector, but I would like to know specifically how the government will do that. What exactly will the Trudeau government do before the U.S. Department of Commerce finalizes these tariffs in November?
Thank you for your question, senator. This is a serious issue, but not a new one between our countries, as we well know.
The importance of the forestry sector to Canada’s economy, to the men, women and families that depend upon it is well-known, and we all understand it. The government, as you point out, is committed to vigorously defending their interest.
I’ve been advised that Minister Ng is raising this issue at every possible opportunity, including with President Biden, Ambassador Tai and Secretary Raimondo. The government believes that a negotiated agreement is possible. We’ve seen that in the past. It’s in the best interests of both countries. The government looks forward to and will continue to be working closely with the United States to protect Canadian interests in this regard.
Minister Ng’s saying that she will vigorously defend, but I have information that counters this. That’s my question: What is she doing? This was a recent announcement about the more than doubling of the rates. But over five years ago, in March 2016, Prime Minister Trudeau promised a softwood lumber deal with the U.S. in 100 days. But the United States has had three presidents since that promise was made. The mandate letters from the Prime Minister for Minister Ng and Minister O’Regan in 2019 did not mention softwood lumber and neither do the supplementary mandate letters issued in January of this year.
When I asked about a deal, Katherine Tai, the U.S. Trade Representative, told the U.S. Senate Finance Committee two weeks ago:
In order to have an agreement and in order to have a negotiation, you need to have a partner. And thus far, the Canadians have not expressed interest in engaging.
Leader, in all honesty, has your government written off negotiating a softwood lumber deal with the Biden administration?
Thank you for your question. In matters of this kind, as experienced senators would know, there is a certain degree of posturing in certain places and at certain times.
I have been advised that Minister Ng is raising this issue with her counterparts and that Canada is pursuing all of its options, including the interest in a negotiated settlement in the interests of protecting this vital industry for the benefit of Canadians.
