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<title>PETTIGREW ANNOUNCES ESTABLISHMENT OF WTO PANEL</title>
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<p><font face="Arial"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1"><strong></strong></font><font face="Arial" size="+1"><strong>September 11, 2000 <em>(5:15 p.m. EDT)</em> No. 221</strong></font></p>
<p align="CENTER"><font face="Arial" size="+1"> </font><font face="Arial" size="+1"><strong>PETTIGREW ANNOUNCES ESTABLISHMENT OF WTO PANEL </strong></font></p>
<p><font face="Arial"></font><font face="Arial"></font><font face="Arial">International Trade Minister Pierre Pettigrew today announced that the World Trade Organization (WTO) has
established, at Canada's request, a dispute settlement panel to rule whether the United States treatment of
export restraints under its countervailing duty regime violates WTO obligations.</font></p>
<p><font face="Arial">"I am pleased that the WTO has established this panel," said Minister Pettigrew. "The United States has
investigated export restraints in previous cases involving Canadian products and we need to clarify the rules."</font></p>
<p><font face="Arial"></font><font face="Arial">In the 1992 investigation of softwood lumber imports from Canada, the U.S. Department of Commerce found
that log export restraints conferred a countervailable subsidy. This decision was later over-turned on review
under the Canada-U.S. Free Trade Agreement. Last year, the United States again raised the issue of export
restraints in a countervailing duty investigation of live cattle imports from Canada. No duties were imposed.</font></p>
<p><font face="Arial">"The current Softwood Lumber Agreement with the United States is due to expire in March 2001," the Minister
noted. "It is important to our industry and provinces that the U.S. application of these rules be consistent with its
international obligations."</font></p>
<p><font face="Arial"></font><font face="Arial">A countervailing duty is a special duty imposed to offset foreign subsidies on imported products that cause
injury to the domestic industry. </font></p>
<p><font face="Arial">Canada first requested the establishment of a panel at a special meeting of the WTO Dispute Settlement Body
on August 4, 2000. The United States blocked establishment of the panel at that meeting. Dispute Settlement
Body rules require the establishment of a panel at the second request for a panel, which occurred today. The
panel will issue its decision in six to nine months.</font></p>
<p align="CENTER"><font face="Arial"></font><font face="Arial">- 30 -</font></p>
<p><font face="Arial">For further information, media representatives may contact:</font></p>
<p><font face="Arial">Sylvie Bussières</font></p>
<p><font face="Arial">Office of the Minister for International Trade</font></p>
<p><font face="Arial">(613) 992-7332</font></p>
<p><font face="Arial">Media Relations Office</font></p>
<p><font face="Arial">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Arial">(613) 995-1874</font></p>
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