NEWS RELEASES

July 16, 2001 (2:30 p.m. EDT) No. 106

PETTIGREW ANNOUNCES CANADA'S REQUEST TO ESTABLISH WTO PANEL

International Trade Minister Pierre Pettigrew today announced that Canada will request the establishment of a World Trade Organization (WTO) dispute settlement panel at the WTO Dispute Settlement Body meeting on July 24.

Canada will seek a panel ruling on a U.S. law (Section 129(c)(1) of the Uruguay Round Agreements Act) that prevents the United States from refunding duty deposits collected from foreign companies in situations where the imposition of duties has been found to run afoul of WTO rules.

"We believe the U.S. law in question is unfair and punitive, and that U.S. actions should be consistent with their obligations under the WTO Agreements," said Minister Pettigrew. "Any unjustified duties imposed in the future should be refunded by the U.S. By making this challenge, we are continuing to defend the interests of Canadian industry, including the softwood lumber sector, which is currently targeted by a U.S. trade action."

Prior to requesting the creation of the WTO panel, the Government of Canada consulted key stakeholders from the provinces and various industry associations.

Canada recently challenged the treatment of export restraints under U.S. trade remedy legislation. The WTO upheld Canada's view that export restraints do not confer a countervailable subsidy.

This panel request by the Government of Canada follows from consultations held with the United States on March 1, 2001.

- 30 -

For further information, media representatives may contract:

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