NEWS RELEASES

September 12, 2006 (3:35 p.m. EDT)
No. 99

MINISTER EMERSON AND U.S. TRADE REPRESENTATIVE SCHWAB SIGN SOFTWOOD LUMBER AGREEMENT

The Honourable David L. Emerson, Minister of International Trade and Minister for the Pacific Gateway and the Vancouver-Whistler Olympics, today issued the following statement upon signing the Softwood Lumber Agreement with U.S. Trade Representative Susan Schwab:

“Canada’s New Government today marked another important step toward fulfilling a commitment to resolve the longstanding softwood lumber dispute, signing an agreement with the United States that delivers real results for Canadians.

“Backed by two national governments, all major softwood-producing provinces and an overwhelming majority of Canadian softwood lumber producers, this historic Agreement delivers predictable access to the U.S. market; guarantees the repayment of more than US$4.4 billion in disputed duties; provides provincial and regional flexibility in forestry policies; and brings an end to years of uncertainty and costly litigation.

“Professionalism, mutual respect and sustained effort have delivered this deal for Canadians. By approaching our most important diplomatic and trading relationship in a rational, workmanlike fashion, we are getting things done for Canadians.

“Today’s signing—and the opportunity to begin constructive, new dialogue with Trade Representative Schwab on issues that matter—represents hope that trade irritants, however few there are, can be dealt with in a courteous and professional manner.”

More information is available at:

http://www.dfait-maeci.gc.ca/trade/eicb/softwood/SLA-main-en.asp.

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A backgrounder is attached.

For further information, media representatives may contact:

Robert Klager
Director of Communications
Office of the Minister of International Trade and Minister for the Pacific Gateway and the Vancouver-Whistler Olympics
613-996-8605

Trade Media Relations Office
Foreign Affairs and International Trade Canada
613-996-2000
http://www.international.gc.ca

Backgrounder

THE SOFTWOOD LUMBER AGREEMENT PROCESS

Background

The Government of Canada consulted closely with the provinces, territories and industry to develop a strong Canadian position that reflects the balancing of interests for the Canadian softwood lumber industry.

Intense negotiations yielded significant results, including an agreement in principle (on April 27, 2006), an initialled legal text (on July 1, 2006) and, now, a final agreement (signed September 12, 2006).

Signing

Signature indicates that the two Parties have agreed to a final legal text of the Agreement.

As is often the case with trade agreements (for example NAFTA, WTO, Canada-Costa Rica Free Trade Agreement), the softwood lumber agreement was signed prior to being introduced in Parliament.

This allows Parliamentarians to consider the final Agreement when they debate and vote on legislation to implement Canada’s commitments under the Agreement.

Next Steps

Canada must now take steps to complete domestic implementation of its commitments under the Agreement.

For Canada, this means introducing the legislation required to implement Canada’s commitments under the Softwood Lumber Agreement when Parliament resumes—specifically, the authority to impose the necessary charges, allocate quota to Canadian exporters and issue export permits.

The United States will not require any legislative measures to implement the Agreement. However, it must now revoke the duty orders and direct the liquidation of the duty deposits.