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<title>PETTIGREW LAUNCHES NEW WTO CHALLENGE OF U.S. LUMBER DUMPING DETERMINATION</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>September 13, 2002 <em>(4:45 p.m. EDT)</em> No. 100</strong></font></p>
<p align="CENTER"><font face="Arial"></font><font face="Arial" size="+1"><strong>PETTIGREW LAUNCHES NEW WTO CHALLENGE OF U.S. LUMBER DUMPING
DETERMINATION</strong></font></p>
<p><font face="Arial"></font><font face="Arial">International Trade Minister Pierre Pettigrew today announced that Canada has requested consultations with
the United States at the World Trade Organization (WTO) regarding the U.S. Department of Commerce's Final
Determination of Dumping that resulted in an average 8.43 percent duty on Canadian softwood lumber exports
to the United States.</font></p>
<p><font face="Arial">"We are challenging the United States dumping determination and other unwarranted U.S. measures, and we
will continue to do whatever it takes to defend the interests of Canada's softwood lumber industry," said
Minister Pettigrew.</font></p>
<p><font face="Arial">The United States has also imposed an 18.7 percent countervailing duty on softwood lumber from Canada
bringing the total tariffs to 27.13 percent.</font></p>
<p><font face="Arial">The Government of Canada has pointed out that the U.S. final dumping determination is inconsistent with the
Anti-dumping Agreement, the General Agreement on Tariffs and Trade of 1994, and U.S. obligations under
these agreements. The request for consultations is the first step in the process for a WTO Dispute Settlement
Understanding. </font></p>
<p><font face="Arial">Following consultations, Canada may ask for the establishment of a WTO panel to determine whether the U.S.
Department of Commerce decision to impose anti-dumping duties on Canadian lumber in May 2002 conforms
with U.S. WTO obligations.</font></p>
<p><font face="Arial">In cooperation with industry and the provinces, Canada is pursuing all legal avenues available to challenge the
U.S. actions. These include NAFTA Chapter 19 binational reviews and WTO challenges of the determination of
subsidy, the determination of dumping and the determination of injury.</font></p>
<p><font face="Arial">For more information visit <a href="https://bac-lac.wayback.archive-it.org/web/20061209062306/http://www.dfait-maeci.gc.ca/~eicb/softwood/lumber-e.htm">http://www.dfait-maeci.gc.ca/~eicb/softwood/lumber-e.htm</a></font></p>
<p><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">Sébastien Théberge</font></p>
<p><font face="Arial">Director of Communications</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><a href="https://bac-lac.wayback.archive-it.org/web/20061209062306/http://www.dfait-maeci.gc.ca/"><font face="Arial">http://www.dfait-maeci.gc.ca</a></font></p>
<p align="CENTER"><font face="Arial" size="+1"><strong>Backgrounder</strong></font></p>
<p><font face="Arial">On September 13, 2002, Canada formally requested consultations with the United States with respect to the
U.S. Department of Commerce's (DOC) final anti-dumping determination concerning certain softwood lumber
products from Canada. </font></p>
<p><font face="Arial">On May 21, 2002, the DOC determined that producers/exporters of softwood lumber from Canada sold their
product in the United States at less than fair value. On May 22, the DOC imposed an average anti-dumping
duty of 8.43 percent based on anti-dumping duty rates applied to six Canadian companies that were specifically
targeted and subject to the DOC investigation. The anti-dumping duties apply to softwood lumber producers in
all provinces including those in Atlantic Canada.</font></p>
<p><font face="Arial">Canada's request for consultations will examine three aspects of the U.S. final anti-dumping determination.
Canada believes that the DOC: </font></p>
<p><font face="Arial">1. improperly initiated the anti-dumping investigation that resulted in the Final Determination of Dumping and
subsequent 8.43 percent duty;</font></p>
<p><font face="Arial">2. improperly applied a number of methodologies that are inconsistent with the U.S. WTO obligations and that
resulted in artificial and inflated margins of dumping; and</font></p>
<p><font face="Arial">3. failed to establish a proper product scope for investigation and improperly initiated and pursued the
investigation with regard to softwood lumber products contrary to WTO obligations.</font></p>
<p><font face="Arial">Following the request for consultations, the parties have 30 days to conduct consultations. Canada may request
the establishment of a WTO panel to investigate its claims 60 days after the request for consultations.</font></p>
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