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<title>CANADA EXPRESSES CONCERN OVER U.S. SAFEGUARD ACTION ON STEEL IMPORTS</title>
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<p><font face="Arial" size="+1"></font><font face="Arial" size="+1"><strong>June 22, 2001 <em>(7:35 p.m. EDT)</em> No. 87</strong></font></p>
<p align="CENTER"><font face="Arial" size="+1"><strong>CANADA EXPRESSES CONCERN OVER U.S. SAFEGUARD ACTION ON STEEL IMPORTS</strong></font></p>
<p><font face="Arial">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.</font></p>
<p><font face="Arial">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.</font></p>
<p><font face="Arial">"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."</font></p>
<p><font face="Arial">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.</font></p>
<p><font face="Arial">"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."</font></p>
<p align="CENTER"><font face="Arial">- 30 -</font></p>
<p><font face="Arial">For further information, media representatives may contact:</font></p>
<p><font face="Arial">Sébastien Théberge</font></p>
<p><font face="Arial">Office of the Minister for International Trade</font></p>
<p><font face="Arial">(613) 992-7332</font></p>
<p><font face="Arial">Media Relations Office</font></p>
<p><font face="Arial">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Arial">(613) 995-1874</font></p>
<p><font face="Arial">Jean-Michel Catta</font></p>
<p><font face="Arial">Public Affairs and Operations Division</font></p>
<p><font face="Arial">Department of Finance </font></p>
<p><font face="Arial">(613) 996-8080</font></p>
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