• Main Menu

• Foreign Policy
• International Trade
• Travel Assistance
• Countries and Regions
• Culture, Education and Youth
• Ministers

NEWS RELEASES

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.

- 30 -

For further information, media representatives may contact:

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