NEWS RELEASES
April 13, 2004 (1:25 p.m. EDT) No. 57
WTO PANEL DECISION ON SOFTWOOD ANTI-DUMPING
DETERMINATION
A World Trade Organization (WTO) panel issued a report today finding that the United
States Department of Commerce anti-dumping determination regarding softwood
lumber was inconsistent with its WTO obligations.
"We are pleased that the WTO ruled in our favour on the key issue in the case," said
Jim Peterson, Minister of International Trade. "We urge the U.S. to comply with this
ruling."
Dumping is the sale of goods in a foreign market at prices below those charged for
comparable sales in the home market or below the cost of producing the goods.
The Panel found in favour of Canada on the issue of zeroing. Zeroing is the practice of
assigning a margin of zero to goods for which the export price exceeds the home
market price. This difference is also referred to as "a negative dumping margin."
Zeroing prevents the negative margin for one category of goods from offsetting a
margin of dumping for another category of goods, thus inflating the overall dumping
margin. The Panel found in favour of the United States on a number of other issues.
This report refers to the 8.43 percent anti-dumping duty imposed in May 2002 on
Canadian softwood lumber exports to the United States.
This decision follows a key victory at the WTO on March 22. A panel ruled in its final
report that the injury determination issued by the U.S. International Trade Commission
did not meet its international obligations. A NAFTA panel is also set to rule on threat of
injury on April 30.
The Government of Canada is continuing to work with the provinces and industry on its
two-track strategy of litigation and negotiations to find a lasting resolution to this
dispute.
For more information regarding softwood lumber issues in general, please visit:
http://www.softwoodlumber.gc.ca.
The WTO panel report is available at http://www.wto.org.
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For further information, media representatives may contact:
Jacqueline LaRocque
Director of Communications
Office of the Minister of International Trade
(613) 992-7332
Media Relations Office
Foreign Affairs Canada and International Trade Canada
(613) 995-1874
http://www.dfait-maeci.gc.ca
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