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SOFTWOOD LUMBER: CANADA PLEASED WITH NAFTA RULING ON THREAT OF INJURY

September 5, 2003 (11:10 a.m. EDT) No. 127

SOFTWOOD LUMBER: CANADA PLEASED WITH NAFTA RULING ON THREAT OF INJURY

International Trade Minister Pierre Pettigrew today welcomed a NAFTA dispute settlement panel, which ruled that the U.S. International Trade Commission's (ITC) determination that Canada's softwood lumber exports threatened to injure the United States softwood industry was inconsistent with U.S law. The panel ordered the U.S. to issue a new determination within 100 days.

"The NAFTA panel agreed with Canada," said Minister Pettigrew. "The U.S. International Trade Commission failed to provide a reasonable explanation for its finding, and failed to ensure that its determination was based on the facts."

On May 22, 2002, the ITC determined that the U.S. softwood lumber industry was "threatened" with material injury by reason of alleged subsidized and dumped imports of softwood lumber from Canada. This injury determination followed subsidy and dumping determinations by the U.S. Department of Commerce and resulted in the imposition of U.S. countervailing and anti-dumping duties. Canada challenged this threat of injury determination before the World Trade Organization (WTO) and under the North American Free Trade Agreement.

The Government of Canada has been consulting closely with the provinces and industry, and will continue to vigorously defend the rights of the Canadian softwood lumber industry at NAFTA and the WTO.

For more information regarding Canada's legal challenges against the United States at the WTO and under NAFTA, please visit: http://www.dfait-maeci.gc.ca/eicb/softwood/legal_action-en.asp

For more information regarding softwood lumber issues in general, please visit: http://www.softwoodlumber.gc.ca

The NAFTA panel decision is available at http://www.nafta-sec-alena.org

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For further information, media representatives may contact:

Sébastien Théberge

Director of Communications

Office of the Minister for International Trade

(613) 992-7332

sebastien.theberge@dfait-maeci.gc.ca

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

http://www.dfait-maeci.gc.ca


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