NEWS RELEASES
CANADA RESPONDS TO U.S. PRESIDENT'S RENEWALOF HELMS-BURTON WAIVER
January 3, 1997 No. 1
CANADA RESPONDS TO U.S. PRESIDENT'S RENEWAL
OF HELMS-BURTON WAIVER
Foreign Affairs Minister Lloyd Axworthy and International Trade Minister Art
Eggleton today noted U.S. President Bill Clinton's decision to renew the six-month
waiver that suspends the right of U.S. companies to sue under the Helms-Burton
Act. Under the Act, six months is the longest period for which the President can
renew the suspension.
"Although this announcement is helpful in the short term, the Government of Canada
is concerned about the continued application of extraterritorial measures," said
Mr. Axworthy. "We are hopeful that our continued opposition to the Act will
eventually result in the repeal of the Helms-Burton legislation."
"The President's decision postpones but does not eliminate the threat to Canadian
companies under Title III," said Mr. Eggleton. "The Act still creates long-term
uncertainty, however, and we are disappointed. We are also very concerned about
other provisions within it, such as continuing entry restrictions."
Under the Helms-Burton Act, U.S. nationals may launch lawsuits in U.S. courts
against Canadian and other foreign firms allegedly "trafficking" in property
expropriated from these American citizens. President Clinton announced on July
16, 1996, that this right to sue would be suspended for a six-month period.
Today's decision renews that suspension until August 1, 1997.
The U.S. law also provides for restrictions on temporary entry into the United
States of corporate officers of these companies if they are determined to be
"trafficking" in expropriated property.
As part of a broad campaign to oppose Helms-Burton, the Canadian government
amended the Foreign Extraterritorial Measures Act (FEMA). These strong and
effective changes to FEMA, which became law on January 1, 1997, will protect
Canadian companies from unacceptable foreign laws by:
ensuring that judgments handed down under Helms-Burton will not be enforced or
recognized in Canada;
permitting Canadians to recover in Canadian courts any amounts awarded under
Helms-Burton, along with their court costs and consequent damages -- a measure
known as "clawback";
giving the Attorney General of Canada the authority to amend a schedule listing
objectionable foreign legislation that violates international law.
In November 1996, Canada announced that it would participate as a third party in
the European Union's challenge of the Helms-Burton legislation at the World Trade
Organization.
Canada has also held consultations with the United States under the North American
Free Trade Agreement and has pursued the issue in international organizations such
as the Organization for Economic Co-operation and Development and the Organization
of American States.
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For further information, media representatives may contact:
Catherine Lappe
Director of Communications
Office of the Minister of
Foreign Affairs
(613) 995-1851
Nicole Bourget
Director of Communications
Office of the Minister for
International Trade
(613) 992-7332
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca
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