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<title>GOVERNMENT OF CANADA SUPPORTSPLAN TO ADDRESS STEEL TRADE PROBLEMS</title>
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<p><strong></strong><font size="+1"><strong>July 19, 2001 <em>(4:30 p.m. EDT)</em> No. 109</strong></font></p>
<p align="CENTER"><strong><font size="+1">GOVERNMENT OF CANADA SUPPORTS</strong></font></p>
<p align="CENTER"><font size="+1"><strong>PLAN TO ADDRESS STEEL TRADE PROBLEMS</strong></font></p>
<p>The Government of Canada today released a report outlining potential actions Canada can take to
oppose any restrictions on Canadian steel exports to the United States. </p>
<p>The report, which was prepared by a government-industry working group, has been endorsed by
International Trade Minister Pierre Pettigrew, National Revenue Minister Martin Cauchon and
Secretary of State (International Financial Institutions) James S. Peterson. </p>
<p>The report also addresses the possible diversion of offshore steel from the United States to
Canada as a result of the U.S. safeguard investigation on global steel imports.</p>
<p> </p>
<p>"The U.S. investigation responds to problems created by non-NAFTA [North American Free
Trade Agreement] steel imports, but the investigation targets imports from all countries," said
Minister Pettigrew. "The U.S. Administration has indicated that this investigation is not aimed at
Canada, and we will work with the industry to obtain an exemption under the NAFTA." </p>
<p>"The Canada Customs and Revenue Agency has always supported the steel industry and will
continue to do so where warranted," said Minister Cauchon.</p>
<p>To respond to possible trade diversion, the government and industry have agreed to meet
regularly to review steel import statistics. If trade diversion is detected and creates critical
circumstances for the domestic industry, the government could impose a provisional surtax while
the Canadian International Trade Tribunal conducts a safeguard investigation. </p>
<p>"Canadian steel producers have made major investments to maintain competitiveness, and we
will not allow the Canadian market to be side-swiped as a result of the U.S. action," said Mr.
Peterson. </p>
<p>Other actions could include an anti-dumping investigation by the Canada Customs and Revenue
Agency if there is evidence that steel being diverted from the United States is being dumped into
Canada. </p>
<p>Canada's steel exports to the United States were $3.6 billion in 2000 and represent 30 percent of
domestic steel production.</p>
<p align="CENTER">- 30 -</p>
<p>A backgrounder and summary of the Steel Working Group report are available at the Department
of Foreign Affairs and International Trade's Web site: <a href="https://bac-lac.wayback.archive-it.org/web/20070221001453/http://www.dfait-maeci.gc.ca/english/news/public.htm"></p>
<p></a><a href="https://bac-lac.wayback.archive-it.org/web/20070221001453/http://www.dfait-maeci.gc.ca/tna-nac/steelback-e.asp">http://www.dfait-maeci.gc.ca/tna-nac/steelback-e.asp</a></p>
<p><a href="https://bac-lac.wayback.archive-it.org/web/20070221001453/http://www.dfait-maeci.gc.ca/tna-nac/steelrep-e.asp">http://www.dfait-maeci.gc.ca/tna-nac/steelrep-e.asp</a></p>
<p>For further information, media representatives may contact:</p>
<p>Mora Johnson</p>
<p>Office of the Minister for International Trade</p>
<p>(613) 992-8341</p>
<p>Media Relations Office</p>
<p>Department of Foreign Affairs and International Trade</p>
<p>(613) 995-1874</p>
<p>Suzanne Thébarge </p>
<p>Press Secretary</p>
<p>Office of the Minister</p>
<p>Canada Customs and Revenue Agency</p>
<p>(613) 995-2960 </p>
<p>Jean-Michel Catta </p>
<p>Chief, Consultations & Media Relations</p>
<p>Department of Finance Canada</p>
<p>(613) 996-8080 </p>
<p> <font face="Arial"></font></p>
<p><font face="Arial">This document is also available on the Department of Foreign Affairs and International
Trade's Internet site:</font></p>
<p><a href="https://bac-lac.wayback.archive-it.org/web/20070221001453/http://www.dfait-maeci.gc.ca/"><font face="Arial">http://www.dfait-maeci.gc.ca</a></font></p>
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