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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">January 26, 2005 <i>(7:30 p.m. EST)</i><br>
No. 17</span></span></span></p>
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<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">STATEMENT BY MINISTER PETERSON<br>
FROM DAVOS, SWITZERLAND</span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">International Trade Minister Jim Peterson issued the following statement today at the
World Economic Forum in Davos, Switzerland:</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“Recent statements made in the United States are not only wrong and invalid, but they
are also extremely unhelpful in resolving the softwood lumber issue over the long term.</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“Duties exacted contrary to law must be returned.”</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">The United States has a legal obligation under U.S. law and under the North American
Free Trade Agreement (NAFTA) to refund duties.</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">In every previous Free Trade Agreement (FTA) and NAFTA case, from pork to swine to
red raspberries, the United States has refunded duties when the underlying order has
been found to be inconsistent with NAFTA.</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">The United States also refunds duties in cases before domestic courts. Canada would
have never negotiated an agreement that gave it worse treatment than it would have
received in U.S. courts.</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Other statements suggesting that U.S. actions to implement a World Trade
Organization (WTO) ruling would override an eventual NAFTA decision are incorrect.
As U.S. Trade Representative Robert Zoellick has acknowledged, the WTO and
NAFTA injury processes are separate. Moreover, we do not believe that U.S. actions
comply with the WTO ruling, and we will be challenging them at the WTO.</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">When Canada negotiated the FTA and NAFTA with the U.S., both parties recognized a </span></span></p>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">solid commitment to the rule of law as the foundation of our trading relations.</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Canada will continue to work with the United States on issues such as dispute
settlement, as agreed to between President George W. Bush and Prime Minister
Paul Martin.</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Canada has always been open to negotiations. Only a negotiated settlement that is in
Canada’s best interest would be accepted.</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">As recently as today in Davos, Minister Peterson discussed these issues with his
Quebec counterpart, Minister of Economic and Regional Development Michel Audet. In
the next few days, he will be reiterating Canada’s position with Trade Representative
Zoellick and Undersecretary of Commerce Grant Aldonas.</span></span></p>
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<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">- 30 -</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">For further information, media representatives may contact:</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Jacqueline LaRocque<br>
Director of Communications<br>
Office of the Minister of International Trade<br>
(613) 992-7332</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Media Relations Office<br>
International Trade Canada<br>
(613) 995-1874<br>
</span></span><a href="https://bac-lac.wayback.archive-it.org/web/20070221014707/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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