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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">May 31, 2005 <i>(10:00 a.m. EDT)</i><br>
No. 99</span></span></span></p>
<br>
<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">CANADA SEEKS PUBLIC VIEWS ON POSSIBLE INCREASE IN
CERTAIN MOST-FAVOURED-NATION TARIFFS</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">International Trade Minister Jim Peterson today announced that the Government of
Canada is seeking public comments on a list of products that could be subject to higher
customs duties, in response to increases in certain European Union (EU) tariffs. </span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">After 10 additional countries became members of the EU in May 2004, tariffs from
these countries were harmonized to the EU tariff rate. In some cases, this
harmonization resulted in higher tariffs for Canadian exports. Under WTO rules,
Canada is entitled to seek compensation for these additional costs. Consultations are
taking place to ensure that Canada has all options at its disposal should Canada and
the EU fail to reach agreement on compensation for these economic losses. </span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“While we are confident that current negotiations with the EU will respond to Canada’s
concerns, we have to ensure that we keep all of our options open,” said Minister.
Peterson. </span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">According to WTO rules, a decision to increase the most-favoured-nation (MFN) tariffs
must be made prior to the August 1, 2005, deadline, in the event that current
negotiations between the two parties fail. The MFN tariffs are the tariffs that Canada
charges on products that are not covered by preferential trading agreements such as
NAFTA or those for developing countries. </span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">A <i>Canada Gazette</i> notice invites Canadians to submit their views on this issue by
June 25, 2005. </span></span></p>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"> </span></span></p>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Since March 2004, Canada and the EU have been negotiating a market access
settlement to resolve the current situation.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">As of 10:15 a.m. today, the Department of Finance Canada’s public consultations Web
site may be accessed at </span></span><a href="https://bac-lac.wayback.archive-it.org/web/20070221005007/http://www.fin.gc.ca/activity/consult/MNFtar_e.html"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #0000ff"><span style="text-decoration: underline">http://www.fin.gc.ca/activity/consult/MNFtar_e.html</span></span></span></span></a><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">. </span></span></span></p>
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<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">- 30 -</span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">For further information, media representatives may contact:</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Andrea Lanthier<br>
Press Secretary<br>
Office of the Minister of International Trade<br>
(613) 992-7332</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Media Relations Office<br>
International Trade Canada<br>
(613) 995-1874<br>
</span></span></span><a href="https://bac-lac.wayback.archive-it.org/web/20070221005007/http://www.international.gc.ca/"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #0000ff"><span style="text-decoration: underline">http://www.international.gc.ca</span></span></span></span></a><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000"></span></span></span></p>
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