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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">January 13, 2005 <i>(10:15 a.m. EST)</i><br>
No. 6</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">SOFTWOOD LUMBER: CANADA STEPS UP PRESSURE ON U.S.</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">International Trade Minister Jim Peterson announced today that the Government of
Canada will initiate a North American Free Trade Agreement (NAFTA) challenge of the
final results of the first administrative review of countervailing duties imposed by the
United States on softwood lumber imports from Canada.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“Canadians are justifiably shocked at recent U.S. actions in the softwood lumber
dispute,” said Minister Peterson. “Canada will continue to challenge these actions and
ensure that the United States abides by its international trade obligations. The
international rules-based trading system is founded on predictable and transparent
rules that must be adhered to. The Government of Canada will continue to work with
the provinces and territories and with industry to see an end brought to this dispute.”</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">The countervailing duty administrative review issued on December 14, 2004, by the
U.S. Department of Commerce determined a new duty rate of 17.18 percent, down
slightly from the original rate of 18.79 percent.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Separately, the Government of Canada has filed a notice of intent to appeal the U.S.
International Trade Commission (ITC) threat of injury determination, issued on
November 24, 2004, before the U.S. Court of International Trade (CIT). Canada has
also filed a notice of intent to challenge the countervailing and anti-dumping duty orders
amended to reflect the new ITC determination.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">In addition, on December 30, 2004, Canada challenged the measure taken by the U.S.
to comply with a World Trade Organization (WTO) ruling in the subsidy case. To protect
its retaliatory rights, Canada also sought authority to retaliate on a maximum of
C$200 million of U.S. imports. This figure represents the trade impact on Canadian
exporters resulting from the improper U.S. implementation in the WTO subsidy case.
Retaliation will only be considered in the event that Canada wins in these proceedings.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">In the NAFTA injury case, the U.S. requested an Extraordinary Challenge Committee in
response to the ITC determination that Canadian softwood lumber imports do not
threaten to injure the U.S. industry. Canada has selected its Committee members and
calls on the U.S. to do the same to avoid further delay in this case.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Minister Peterson will continue to consult regularly with provincial and territorial
counterparts and industry representatives to encourage the development of a
pan-Canadian position on the elements necessary for a durable resolution of the
dispute.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">The Government of Canada will continue to pursue other avenues to advocate
Canadian interests in the U.S. These include considering retaliation in response to the
Byrd Amendment and initiating trade advocacy days to build on other awareness
activities already underway.</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>
<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/20070220184302/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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