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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">September 13, 2006 <i>(4:30 p.m. EDT)</i><br>
No. 101</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’S NEW GOVERNMENT DELIVERS A PLAN TO RETURN
BILLIONS TO CANADIAN SOFTWOOD PRODUCERS</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">The Honourable David L. Emerson, Minister of International Trade and Minister for the
Pacific Gateway and the Vancouver-Whistler Olympics, today announced plans to put
more than US$4.4 billion into the hands of Canadian softwood producers. The refund of
duties to Canadian companies is part of the Softwood Lumber Agreement Minister
Emerson signed with U.S. Trade Representative Susan Schwab in Ottawa on
September 12, 2006.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“Canada’s New Government is committed to the swift return of duty deposits to
individual softwood producers, and to a level playing field for all companies benefiting
from the Agreement we have signed with the United States,” said Minister Emerson.
“As a next step in the process to implement this Agreement, we have advised
companies of the refund registration process and of their individual obligations under
the unique mechanism that our government established to get billions of dollars to
Canadian companies sooner.”</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Foreign Affairs and International Trade Canada this week issued letters to some
1,500 softwood producers, explaining the registration process and industry obligations
under the deposit refund mechanism. For companies that participate in the deposit
refund mechanism, Export Development Canada (EDC) will purchase the rights to the
duties and interest owed to them—eliminating the expected waiting period for U.S.
Customs to process refunds, which may take up to two years. Under the EDC refund
mechanism, cash will flow within four to eight weeks of the Agreement’s intended
coming into force on October 1 to companies that have returned the necessary legal
and administrative documents.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">In order to ensure equity and fairness to all companies benefiting from the Agreement
and to protect Canadian taxpayers from unnecessary financial burden, the Government
of Canada will seek to introduce a special charge of approximately 19 percent, which
would apply to all refunds. This charge will be payable to the Government of Canada by
non-participants in the EDC deposit refund mechanism no later than the end of the
month following receipt of a refund from U.S. Customs. By participating in the EDC
deposit refund mechanism, companies have already agreed to advance an equivalent
share of their refunds.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“In response to industry requests, and in an effort to ensure fairness to the vast majority
of companies that support the Agreement, our government has developed a plan that
puts money quickly back into the hands of Canadians,” said Minister Emerson. “We
intend to recognize companies’ participation in the deposit mechanism as meeting their
obligations under the proposed special charge.”</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">With the support of two national governments, all of the major softwood producing
provinces and individual companies representing an overwhelming majority of duty
deposits owed from British Columbia to Quebec and Atlantic Canada, the Government
of Canada is moving forward and intends to introduce implementing legislation soon
after Parliament resumes on September 18.</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">Robert Klager<br>
Director of Communications<br>
Office of the Minister of International Trade and Minister for the Pacific Gateway and
the Vancouver-Whistler Olympics<br>
613-996-8605</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Trade Media Relations Office<br>
Foreign Affairs and International Trade Canada<br>
613-996-2000<br>
</span></span><a href="https://bac-lac.wayback.archive-it.org/web/20070221013045/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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