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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">September 12, 2006 <i>(3:35 p.m. EDT)</i><br>
No. 99</span></span></span></p>
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<p style="text-align: center"><span style="font-size: 14pt"><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">MINISTER EMERSON AND U.S. TRADE REPRESENTATIVE SCHWAB
SIGN SOFTWOOD LUMBER AGREEMENT</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 issued the following
statement upon signing the Softwood Lumber Agreement with U.S. Trade
Representative Susan Schwab:</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“Canada’s New Government today marked another important step toward fulfilling a
commitment to resolve the longstanding softwood lumber dispute, signing an
agreement with the United States that delivers real results for Canadians.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“Backed by two national governments, all major softwood-producing provinces and an
overwhelming majority of Canadian softwood lumber producers, this historic Agreement
delivers predictable access to the U.S. market; guarantees the repayment of more than
US$4.4 billion in disputed duties; provides provincial and regional flexibility in forestry
policies; and brings an end to years of uncertainty and costly litigation.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“Professionalism, mutual respect and sustained effort have delivered this deal for
Canadians. By approaching our most important diplomatic and trading relationship in a
rational, workmanlike fashion, we are getting things done for Canadians.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“Today’s signing—and the opportunity to begin constructive, new dialogue with Trade
Representative Schwab on issues that matter—represents hope that trade irritants,
however few there are, can be dealt with in a courteous and professional manner.”</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">More information is available at: </span></span></p>
<p><a href="https://bac-lac.wayback.archive-it.org/web/20070221062247/http://www.dfait-maeci.gc.ca/trade/eicb/softwood/SLA-main-en.asp"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #0000ff"><span style="text-decoration: underline">http://www.dfait-maeci.gc.ca/trade/eicb/softwood/SLA-main-en.asp</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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<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">- 30 -</span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">A backgrounder is attached.</span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">For further information, media representatives may contact:</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">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<br>
</span></span></span></p>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Trade Media Relations Office<br>
Foreign Affairs and International Trade Canada<br>
613-996-2000<br>
</span></span></span><a href="https://bac-lac.wayback.archive-it.org/web/20070221062247/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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<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="color: #000000"><span style="font-size: 14pt"><span style="font-weight: bold">Backgrounder</span></span></span></span></p>
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<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="color: #000000"><span style="font-size: 14pt"><span style="font-weight: bold">THE SOFTWOOD LUMBER AGREEMENT PROCESS</span></span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000"><span style="font-weight: bold">Background</span></span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">The Government of Canada consulted closely with the provinces, territories and
industry to develop a strong Canadian position that reflects the balancing of interests
for the Canadian softwood lumber industry. </span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Intense negotiations yielded significant results, including an agreement in principle (on
April 27, 2006), an initialled legal text (on July 1, 2006) and, now, a final agreement
(signed September 12, 2006).</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000"><span style="font-weight: bold">Signing</span></span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Signature indicates that the two Parties have agreed to a final legal text of the
Agreement.</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">As is often the case with trade agreements (for example NAFTA, WTO, Canada-Costa
Rica Free Trade Agreement), the softwood lumber agreement was signed prior to being
introduced in Parliament. </span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">This allows Parliamentarians to consider the final Agreement when they debate and
vote on legislation to implement Canada’s commitments under the Agreement.</span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000"><span style="font-weight: bold">Next Steps</span></span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Canada must now take steps to complete domestic implementation of its commitments
under the Agreement. </span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">For Canada, this means introducing the legislation required to implement Canada’s
commitments under the Softwood Lumber Agreement when Parliament
resumes—specifically, the authority to impose the necessary charges, allocate quota to
Canadian exporters and issue export permits.</span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">The United States will not require any legislative measures to implement the
Agreement. However, it must now revoke the duty orders and direct the liquidation of
the duty deposits.</span></span></span></p>
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