NEWS RELEASES

March 29, 2001 (2:00 p.m. EST) No. 39

PETTIGREW ANNOUNCES MONITORING MEASURE

FOR SOFTWOOD LUMBER EXPORTS TO THE U.S.

International Trade Minister Pierre Pettigrew announced today that Canada will monitor softwood lumber exports to the United States.

"Certain U.S. politicians are making unsubstantiated allegations that lumber from Canada will surge after the expiry of the Softwood Lumber Agreement on March 31," declared Pettigrew. "With the co-operation of exporters, we are ensuring that we have the necessary information to defend the interests of Canada's industry against possible U.S. trade actions."

The purpose is to provide a mechanism for gathering clear and accurate data on exports and ensuring that an orderly transition is made once the Softwood Lumber Agreement expires on March 31. Exporters of softwood lumber to the U.S. will be required to obtain a permit, which will be available upon request from the Department of Foreign Affairs and International Trade. This will apply nation-wide for all softwood lumber exports to the United States.

As this measure takes effect, Canada will continue to consult stakeholders on all developments pertaining to softwood lumber.

For more information, please visit the following Web site: http://www.dfait-maeci.gc.ca

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A backgrounder is attached.

For further information, media representatives may contact:

Sébastien Théberge Media Relations Office

Office of the Minister for International Trade Department of Foreign Affairs

(613) 992-7332 and International Trade

(613) 995-1874

Backgrounder

SOFTWOOD LUMBER EXPORT PERMITS

Effective April 1, 2001, export permits will be required for all exports of softwood lumber from Canada to the United States. This measure will provide accurate company-by-company data, including the province/territory of origin of exports to the United States. This will allow the Government of Canada and its industry to have reliable information on the level of exports in the event of unsubstantiated allegations about the volume of exports.

Canadian exporters are being informed of the permit requirement and the procedures to be followed. The national monitoring program will provide permits to Canadian exporters of softwood lumber on request, and does not involve the allocation of quotas.

Exporters normally apply for permits through Canadian customs brokers. Permits are issued by the Export and Import Controls Bureau (EICB) of the Department of Foreign Affairs and International Trade. As an interim measure, exporters may apply directly to the EICB for permits until they have made arrangements with a broker. The fee schedule that will apply is used for all commodities controlled and monitored by the EICB, and is intended to cover costs.

Permits will capture such information as the name of the exporter, name of the manufacturing mill, province of manufacture, volume of lumber, product description and value. Canada will make this information available on an aggregate basis, but will not release individual company data, due to confidential business considerations.

Notice to Exporters No. 132 is being sent to exporters to explain the program. It will be available through the DFAIT Web site: http://www.dfait-maeci.gc.ca/~eicb/softwood/lumber-e.htm