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<p><span style="font-size: 14pt"><span style="font-weight: bold">November 16, 2005 <i>(8:00 a.m. EST)</i><br>
No. 218</span></span></p>
<br>
<p style="text-align: center"><span style="font-weight: bold"><span style="font-size: 14pt">STATEMENT BY MINISTER PETERSON ON CANADA’S LITIGATION
TRACK ON SOFTWOOD LUMBER</span></span><span style="font-size: 14pt"></span></p>
<br>
<p>International Trade Minister Jim Peterson provided the following statement at a press
conference on November 15 regarding Canada’s legal track on softwood lumber as well
as Canadian efforts to see the United States respect its NAFTA obligations:</p>
<br>
<p>“It is easy to get lost in the flurry of decisions, reports and opinions about softwood
lumber. Even Canada’s fourth estate—all of you, perhaps the most informed
observers—may have trouble navigating between injury, subsidy and anti-dumping
panel orders, or between decisions and appeals.</p>
<br>
<p>“Earlier today, a WTO panel concluded that the U.S. has brought itself into compliance
with the WTO. Canada strongly disagrees with the panel’s conclusion. We are
appealing this decision. We expect a final decision on that appeal in late winter or early
spring 2006.</p>
<br>
<p>“However, let’s be clear on one thing: the NAFTA is what we need to keep our attention
focused on. Will we stop advocating this position to our American neighbours? No, we
won’t.</p>
<br>
<p>“Many of you have asked how this WTO ruling affects the final outcome of the NAFTA
softwood lumber injury case, which went decisively in Canada’s favour last August 10. I
want to make it perfectly clear that, in reality, the WTO report provides no justification,
legal or otherwise, for the U.S.’s failure to comply with its NAFTA obligations.</p>
<br>
<p>“WTO panels consider whether the U.S. is in compliance with its WTO obligations.
NAFTA panels, on the other hand, determine whether U.S. actions are in compliance
with its own domestic laws.</p>
<br>
<p>“It is illegal to continue to collect Canadians’ money the way the Americans are doing
right now. The matter is clear and simple: the NAFTA must be respected. The U.S. was
wrong to collect the duties in the first place and is obliged under the NAFTA to return
them. Canada isn’t making this up—this is enshrined in U.S. law.</p>
<br>
<p>“In looking at our trading relationship with the U.S., it is important to remember that fully
95 percent of all trade crosses our borders without dispute or difficulty.</p>
<br>
<p>“As the economic update of November 14 and the Prime Minister have made clear, ‘it’s
not good enough for countries to honour just 95 per cent of their obligations under
international trade agreements. Those who preach the rules of free trade must practise
the rules of free trade—not just when it is convenient, but 100 per cent of the time.’ To
do otherwise is to undermine a rules-based trading system, encourage protectionism
and put the cause of freer and fairer trade in jeopardy.</p>
<br>
<p>“Canadians want to compete on a level playing field with rules that are clear, rulings
that are respected and commitments that are kept. We expect nothing less from
ourselves. We expect nothing more from our trading partners.”</p>
<br>
<p style="text-align: center">- 30 -</p>
<br>
<p>For further information, media representatives may contact:</p>
<br>
<p>Jacqueline LaRocque<br>
Director of Communications<br>
Office of the Minister of International Trade<br>
(613) 992-7332</p>
<br>
<p>Media Relations Office<br>
International Trade Canada<br>
(613) 995-1874<br>
<a href="https://bac-lac.wayback.archive-it.org/web/20070220184135/http://www.international.gc.ca/"><span style="color: #0000ff"><span style="text-decoration: underline">http://www.international.gc.ca</span></span></a><span style="color: #000000"></span></p>
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