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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">November 15, 2005 <i>(11:35 a.m. EST)</i><br>
No. 216</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 TO APPEAL WTO PANEL’S<br>
CONCLUSIONS ON SOFTWOOD LUMBER</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">International Trade Minister Jim Peterson today confirmed that Canada would appeal a
WTO panel finding that the U.S. is in compliance with its WTO obligations in the
softwood lumber injury case. Minister Peterson also emphasized that the U.S. is still
legally obliged to honour its NAFTA commitments.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“The WTO panel’s findings do not change the fact that the NAFTA process—which is
enforceable under U.S. domestic law—has already concluded that the U.S. was wrong
to impose duties on Canadian softwood lumber in the first place,” explained the
Minister. “The WTO panel’s conclusions address different legal obligations and cannot
be used as an excuse by the United States to avoid complying with NAFTA.” </span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">On August 10, 2005, a NAFTA Extraordinary Challenge Committee (ECC) decision
effectively confirmed that the U.S. had failed to prove that its domestic lumber industry
is being threatened with injury as a result of Canadian softwood lumber imports. As a
result of that decision, the U.S. is legally obligated to revoke the anti-dumping and
countervailing duty orders, to refund deposits, and to terminate all ongoing
administrative reviews. Canada is challenging the U.S. failure to comply with the ECC
decision before the U.S. Court of International Trade (CIT), which can compel the
United States to revoke the duty orders and refund all deposits. </span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“Our central litigation focus remains our case at the U.S. Court of International Trade,”
said Minister Peterson. “The CIT will examine U.S. compliance with its own domestic
law and we are confident that it will rule in Canada’s favour and compel the U.S. to
revoke the duty orders and return the deposits collected to date.” </span></span></p>
<br>
<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">- 30 -</span></span></p>
<br>
<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>
<br>
<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/20070220185017/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></span></span></p>
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