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<title>PETTIGREW ANNOUNCES CANADA'S REQUEST TO ESTABLISH WTO PANEL</title>
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<p><font face="Arial"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1"><strong>July 16, 2001 <em>(2:30 p.m. EDT)</em> No. 106</strong></font></p>
<p align="CENTER"><font face="Arial" size="+1"><strong>PETTIGREW ANNOUNCES CANADA'S REQUEST TO ESTABLISH WTO
PANEL</strong></font></p>
<p><font face="Arial">International Trade Minister Pierre Pettigrew today announced that Canada will request
the establishment of a World Trade Organization (WTO) dispute settlement panel at the
WTO Dispute Settlement Body meeting on July 24.</font></p>
<p><font face="Arial">Canada will seek a panel ruling on a U.S. law (Section 129(c)(1) of the Uruguay Round
Agreements Act) that prevents the United States from refunding duty deposits collected
from foreign companies in situations where the imposition of duties has been found to
run afoul of WTO rules.</font></p>
<p><font face="Arial">"We believe the U.S. law in question is unfair and punitive, and that U.S. actions should
be consistent with their obligations under the WTO Agreements," said
Minister Pettigrew. "Any unjustified duties imposed in the future should be refunded by
the U.S. By making this challenge, we are continuing to defend the interests of
Canadian industry, including the softwood lumber sector, which is currently targeted by
a U.S. trade action."</font></p>
<p><font face="Arial">Prior to requesting the creation of the WTO panel, the Government of Canada consulted
key stakeholders from the provinces and various industry associations. </font></p>
<p><font face="Arial">Canada recently challenged the treatment of export restraints under U.S. trade remedy
legislation. The WTO upheld Canada's view that export restraints do not confer a
countervailable subsidy.</font></p>
<p><font face="Arial">This panel request by the Government of Canada follows from consultations held with
the United States on March 1, 2001.</font></p>
<p><font face="Arial">- 30 -</font></p>
<p><font face="Arial">For further information, media representatives may contract:</font></p>
<p><font face="Arial">Sébastien Théberge</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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