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<p><span style="font-weight: bold"><span style="font-size: 14pt">May 23, 2005 <i>(6:40 p.m. EDT)</i><br>
No. 94</span></span><span style="font-size: 14pt"><span style="font-family: 'Arial', sans-serif"></span></span></p>
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<p style="text-align: center"><span style="font-size: 14pt"><span style="font-family: 'Arial', sans-serif"><span style="font-weight: bold">NAFTA PANEL ONCE AGAIN DECLARES </span></span></span></p>
<p style="text-align: center"><span style="font-size: 14pt"><span style="font-family: 'Arial', sans-serif"><span style="font-weight: bold">U.S. SOFTWOOD LUMBER COUNTERVAILING DUTIES ILLEGAL</span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif">International Trade Minister Jim Peterson today welcomed a NAFTA Dispute
Settlement Panel ruling that the United States Department of Commerce (DOC)
countervailing duties on Canadian softwood lumber are contrary to U.S. law. The
NAFTA Panel has directed the DOC to correct its determination.</span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif">“We are pleased with the NAFTA Panel’s decision, which found that the U.S. subsidy
duties contravene U.S. law,” said Minister Peterson.</span></p>
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<p><span style="font-family: 'Arial', sans-serif">As a result of the three earlier NAFTA Panel decisions in this case, the DOC has
reduced the original subsidy finding from 18.79 percent to 1.88 percent. However,
Canadian exporters continue to pay an</span><span style="font-family: 'Arial', sans-serif"> unjustified</span><span style="font-family: 'Arial', sans-serif"> 16.37 </span>percent <span style="font-family: 'Arial', sans-serif">subsidy rate imposed
by the DOC following its </span><span style="font-family: 'Arial', sans-serif">December 2004</span><span style="font-family: 'Arial', sans-serif"> </span><span style="font-family: 'Arial', sans-serif">countervailing duty administrative review</span>.
Canada continues to argue that Canadian lumber production is not subsidized.</p>
<p> </p>
<p>For more information regarding Canada’s legal challenges against the United States at
the WTO and under NAFTA, please visit
<a href="https://bac-lac.wayback.archive-it.org/web/20070220185511/http://www.dfait-maeci.gc.ca/eicb/softwood/legal_action-en.asp"><span style="color: #0000ff"><span style="text-decoration: underline">http://www.dfait-maeci.gc.ca/eicb/softwood/legal_action-en.asp</span></span></a><span style="color: #000000">.</span></p>
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<p><span style="color: #000000">For more information regarding softwood lumber issues in general, please visit
</span><a href="https://bac-lac.wayback.archive-it.org/web/20070220185511/http://www.softwoodlumber.gc.ca/"><span style="color: #0000ff"><span style="text-decoration: underline">http://www.softwoodlumber.gc.ca</span></span></a><span style="color: #000000">.</span></p>
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<p><span style="color: #000000">The NAFTA panel decision is available at </span><a href="https://bac-lac.wayback.archive-it.org/web/20070220185511/http://www.nafta-sec-alena.org/"><span style="color: #0000ff"><span style="text-decoration: underline">http://www.nafta-sec-alena.org</span></span></a><span style="color: #000000">.</span></p>
<p><span style="color: #000000"><span> </span></span></p>
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<p style="text-align: center"><span style="color: #000000">- 30 -</span></p>
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<p><span style="color: #000000">For further information, media representatives may contact:</span></p>
<br>
<p><span style="color: #000000">Andrea Lanthier</span></p>
<p><span style="color: #000000">Press Secretary<br>
Office of the Minister of International Trade<br>
(613) 992-7332</span></p>
<br>
<p><span style="color: #000000">Media Relations Office<br>
Foreign Affairs Canada and International Trade Canada<br>
(613) 995-1874<br>
</span><a href="https://bac-lac.wayback.archive-it.org/web/20070220185511/http://www.dfait-maeci.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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