August 31, 2004 (5:30 p.m. EDT) No. 100
SOFTWOOD LUMBER: MINISTER PETERSON WELCOMES THIRD
NAFTA RULING ON THREAT OF INJURY
International Trade Minister Jim Peterson today welcomed a North American Free
Trade Agreement (NAFTA) Panel report that found, for the third time, that the U.S.
International Trade Commission (ITC) threat of injury determination was inconsistent
with U.S. law.
“This is the third time that this NAFTA panel has ruled that the International Trade
Commission has failed to properly demonstrate that Canadian softwood lumber exports
threaten to injure the U.S. softwood lumber industry,” said Minister Peterson. “It is clear
that duties on Canadian softwood lumber exports are unjustified.”
In a strongly worded decision, the NAFTA Panel instructed the ITC to issue a
determination consistent with the Panel’s ruling within 10 days.
On May 22, 2002, the ITC determined that the U.S. softwood lumber industry was
threatened with material injury by alleged subsidized and dumped imports of softwood
lumber from Canada. This threat of injury determination followed U.S. Department of
Commerce subsidy and dumping determinations, and resulted in the imposition of
countervailing duties (18.79 percent) and anti-dumping duties(8.43 percent).
Canada also challenged the ITC’s threat of injury determination at the World Trade
Organization (WTO). On April 26, 2004, the WTO Dispute Settlement Body adopted a
WTO Panel report that found the ITC’s threat of injury determination to be inconsistent
with WTO rules.
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For further information, media representatives may contact:
Jacqueline LaRocque
Director of Communications
Office of the Minister of International Trade
(613) 992-7332
Media Relations Office
Foreign Affairs Canada and
International Trade Canada
(613) 995-1874
http://www.international.gc.ca