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<title>PETTIGREW ANNOUNCES WTO CONSULTATIONS WITH U.S.</title>
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<p><font face="Arial"></font><font face="Arial"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1"><strong>January 17, 2001 <em>(3:00 p.m. EST)</em> No. 8</strong></font></p>
<p align="CENTER"><font face="Arial" size="+1"><strong>PETTIGREW ANNOUNCES WTO CONSULTATIONS WITH U.S.</strong></font><font face="Arial"></font></p>
<p><font face="Arial" size="+1"></font><font face="Arial">International Trade Minister Pierre Pettigrew announced today that Canada has
requested consultations with the United States on legislation that prohibits the U.S.
from fully implementing WTO rulings in trade remedy cases.</font></p>
<p><font face="Arial">"We want to eliminate an unjust burden on Canadian exporters," said Mr. Pettigrew.
"Addressing this issue now allows us to continue defending the interests of Canada's
softwood lumber sector."</font></p>
<p><font face="Arial">The consultations being requested by Canada pertain to U.S. legislation that bars the
refunding of estimated duties collected for certain imports where the WTO Dispute
Settlement Body has ruled that the original decision to impose those duties was
inconsistent with the WTO obligations of the United States.</font></p>
<p><font face="Arial">The request for consultations is the first step in dispute settlement proceedings under
the WTO Understanding on Dispute Settlement.</font></p>
<p align="CENTER"><font face="Arial">- 30 -</font></p>
<p><font face="Arial">A backgrounder is attached.</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>
<p align="CENTER"><font face="Arial"><strong></strong></font><font face="Arial" size="+1"><strong>Backgrounder</strong></font><font face="Arial"></font></p>
<p><font face="Arial">On January 17, 2001, Canada formally requested WTO consultations with the United
States over the consistency of certain provisions of U.S. legislation (Section 129(c)(1)
of the <em>Uruguay Round Agreements Act</em>) in relation to that country's WTO obligations.
Under WTO rules, these consultations are to take place within 30 days of making the
request.</font></p>
<p><font face="Arial">Section 129(c)(1) provides that where, in response to an adverse WTO ruling, the
United States Trade Representative (USTR) directs the U.S. Department of
Commerce to revoke an anti-dumping or countervailing duty order, the new WTO-consistent determination and the revocation apply only to imports after the date on
which the USTR directs compliance.</font></p>
<p><font face="Arial">The measures require U.S. authorities to disregard a WTO ruling in making an anti-dumping or countervailing duty determination for imports that occurred prior to the date
on which the USTR directs compliance with the WTO ruling. The actual amount of duty
liability for any given shipment normally is decided in the administrative review, and
the Department of Commerce's final determination in the proceeding. This
determination would occur after the compliance date. As such, the measures bar the
refunding of certain anti-dumping/countervailing duty deposits which are required
under U.S. law, where the WTO has ruled the levying of such duties to be inconsistent
with the WTO Agreement.</font></p>
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