NEWS RELEASES

September 10, 2004 (7:20 p.m. EDT) No. 103

CANADA PLEASED WITH U.S. SOFTWOOD LUMBER NEGATIVE INJURY DETERMINATION

International Trade Minister Jim Peterson today issued the following statement concerning the United States International Trade Commission (ITC) determination that there is no threat of injury to the U.S. domestic industry from Canadian softwood lumber imports:

“We are pleased that the ITC has reached the conclusion that Canadian softwood lumber exports do not threaten to injure the U.S. industry.

“This ITC determination supports what we have been saying all along. Canadian exports of softwood lumber products do not threaten the U.S. domestic industry with material injury, and there is no basis for either the countervailing or anti-dumping duties.

“This determination eliminates the basis for the U.S. to impose anti-dumping and countervailing duties. It is now time for the U.S. to revoke the duties imposed on Canadian softwood lumber exports and to bring an end to this dispute, a move that is long overdue. We look to the U.S. to refund the duties paid by Canadian softwood lumber exporters as soon as possible.”

For more information regarding Canada’s legal challenges against the U.S. at the World Trade Organization and under NAFTA, please visit http://www.dfait-maeci.gc.ca/eicb/softwood/legal_action-en.asp.

More information on softwood lumber issues in general is available at http://www.softwoodlumber.gc.ca.

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A backgrounder is attached.

For further information, media representatives may contact:

Jacqueline LaRocque
Director of Communications
Office of the Minister of International Trade
(613) 992-7332
Cell: (613) 240-4167

Media Relations Office
Foreign Affairs Canada and International Trade Canada
(613) 995-1874
http://www.international.gc.ca

Backgrounder

CHRONOLOGY OF KEY EVENTS

May 16, 2001: The United States International Trade Commission (ITC) issued a preliminary determination that Canadian softwood lumber exports to the U.S. had not injured the U.S. industry, but only posed a threat of injury.

May 2, 2002: The ITC voted 4 to 0 that the U.S. softwood lumber industry was threatened with material injury by reason of imports of softwood lumber from Canada that were found by the U.S. Department of Commerce to be subsidized and dumped in the U.S.

May 22, 2002: A binational panel was established under NAFTA Chapter 19 to review whether the ITC’s threat of injury determination was contrary to U.S. law.

September 5, 2003: The Panel issued its first report and found the ITC’s threat of injury determination to be inconsistent with U.S. law.

December 15, 2003: The ITC issued a threat of injury remand determination that reaffirmed its original finding that the U.S. domestic industry was threatened with injury.

April 29, 2004: The Panel issued its second report and found the ITC’s threat of injury remand determination inconsistent with U.S. law.

June 10, 2004: The ITC issued a second threat of injury remand determination that, once again, found that the U.S. domestic industry was threatened with injury by reason of allegedly dumped and subsidized softwood lumber exports from Canada.

August 31, 2004: The Panel issued its third report and found the ITC’s second threat of injury remand determination inconsistent with U.S. law.

September 10, 2004: The ITC issued its third remand determination and concluded that Canadian softwood lumber exports do not threaten to injure the U.S. domestic industry.