June 22, 2001 (7:35 p.m. EDT) No. 87

CANADA EXPRESSES CONCERN OVER U.S. SAFEGUARD ACTION ON STEEL IMPORTS

The Government of Canada expressed concern with today's request by the U.S. Trade Representative for an investigation that could result in trade restrictions on steel imports into the United States from all countries.

The safeguard investigation, to be conducted by the U.S. International Trade Commission, will consider whether increasing imports of steel to the United States are seriously injuring or threatening to seriously injure the U.S. steel industry.

"We do not believe that steel imports from Canada are causing injury to the U.S. industry. We have informed U.S. authorities of this view on several occasions," said Minister for International Trade Pierre Pettigrew. "We will work closely with Canadian industry to ensure that Canadian imports are exempted from any trade restrictions under article 802 of the North American Free Trade Agreement."

Following recent consultations with the steel sector, Minister Pettigrew and Secretary of State (International Financial Institutions) James S. Peterson noted that should the U.S. action divert steel bound for the United States to Canada, Canada's import monitoring system for steel will provide timely information on any increase in imports.

"Canada has safeguard provisions that allow the Canadian International Trade Tribunal to investigate whether increased imports resulting from trade diversion are causing serious injury to domestic steel producers," said Mr. Peterson. "Such a process could be initiated upon a complaint from domestic industry or on request from the government."

- 30 -

For further information, media representatives may contact:

Sébastien Théberge

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

Jean-Michel Catta

Public Affairs and Operations Division

Department of Finance

(613) 996-8080