NEWS RELEASES

January 26, 2005 (7:30 p.m. EST)
No. 17

STATEMENT BY MINISTER PETERSON
FROM DAVOS, SWITZERLAND

International Trade Minister Jim Peterson issued the following statement today at the World Economic Forum in Davos, Switzerland:

“Recent statements made in the United States are not only wrong and invalid, but they are also extremely unhelpful in resolving the softwood lumber issue over the long term.

“Duties exacted contrary to law must be returned.”

The United States has a legal obligation under U.S. law and under the North American Free Trade Agreement (NAFTA) to refund duties.

In every previous Free Trade Agreement (FTA) and NAFTA case, from pork to swine to red raspberries, the United States has refunded duties when the underlying order has been found to be inconsistent with NAFTA.

The United States also refunds duties in cases before domestic courts. Canada would have never negotiated an agreement that gave it worse treatment than it would have received in U.S. courts.

Other statements suggesting that U.S. actions to implement a World Trade Organization (WTO) ruling would override an eventual NAFTA decision are incorrect. As U.S. Trade Representative Robert Zoellick has acknowledged, the WTO and NAFTA injury processes are separate. Moreover, we do not believe that U.S. actions comply with the WTO ruling, and we will be challenging them at the WTO.

When Canada negotiated the FTA and NAFTA with the U.S., both parties recognized a

solid commitment to the rule of law as the foundation of our trading relations.

Canada will continue to work with the United States on issues such as dispute settlement, as agreed to between President George W. Bush and Prime Minister Paul Martin.

Canada has always been open to negotiations. Only a negotiated settlement that is in Canada’s best interest would be accepted.

As recently as today in Davos, Minister Peterson discussed these issues with his Quebec counterpart, Minister of Economic and Regional Development Michel Audet. In the next few days, he will be reiterating Canada’s position with Trade Representative Zoellick and Undersecretary of Commerce Grant Aldonas.

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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
International Trade Canada
(613) 995-1874
http://www.international.gc.ca