NEWS RELEASES

May 19, 2000 (1:40 p.m. EDT) No. 111

CANADA REQUESTS WTO CONSULTATIONS

ON U.S. COUNTERVAIL MEASURES

International Trade Minister Pierre Pettigrew announced today that Canada is seeking World Trade Organization (WTO) consultations on the manner in which the U.S. indicates it can levy countervailing duties on export restraints.

"The U.S. has made it clear that it considers some of Canada's export restraints to be subsidies," said Minister Pettigrew. "We do not agree. As such, it is in Canada's best interests to clarify this issue before any further countervailing duty investigations are taken by the U.S. or other countries. Canadian industry and provinces support this action."

"Canada is asking the WTO to clear the air on this issue," said the Minister. "Playing by WTO rules ensures that trade benefits all WTO members, and ensures that no country can take arbitrary actions against another. Canada hopes that a WTO ruling will avoid further conflict on this issue."

Countervailing duties are levied when it is determined that subsidized imports are causing injury to the domestic industry in the importing country.

Sixty days after the request for consultations is made, Canada will be in a position to ask the WTO to set up a dispute settlement panel on the issue.

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For further information, media representatives may contact:

Sylvie Bussières

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874