NEWS RELEASES
MINISTER PETTIGREW WELCOMES WTO PANEL RULING ONEXPORT RESTRAINTS
June 29, 2001 (5:35 p.m. EDT) No. 93
MINISTER PETTIGREW WELCOMES WTO PANEL RULING ON
EXPORT RESTRAINTS
International Trade Minister Pierre Pettigrew today welcomed a World Trade Organization (WTO) Panel ruling
that export restraints do not constitute a countervailable subsidy. As a result of this ruling, the United States has
no basis to impose countervailing duties on Canada's log export controls in the current softwood lumber
investigation.
"This is a positive ruling for the Canadian industry and provinces," said Minister Pettigrew. "It further
strengthens our defence in the lumber subsidy investigation launched by the United States."
The WTO Panel was established on September 11, 2000 to hear Canada's complaint that the U.S. treatment of
export restraints in countervailing duty investigations was contrary to U.S. obligations under the WTO
Agreement on Subsidies and Countervailing Measures (SCM).
Log export restraints were the subject of a 1992 countervailing duty investigation against Canadian softwood
lumber. In 1999, the United States again examined an export restraint allegation in the countervailing duty
investigation of live cattle imports from Canada. Log export controls are also being investigated in the current
action against Canadian lumber.
Under the WTO Agreement on Subsidies and Countervailing Measures, the mere existence of an export
restraint does not constitute a countervailable subsidy. The ruling also found that the U.S. is not required to
change its law. Canada welcomes this decision as being an important contribution to the SCM Agreement.
- 30 -
For further information, media representatives may contact:
Sébastien Théberge
Office of the Minister for International Trade
(613) 992-7332
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
| 
