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<title>CANADA REGRETS NEW U.S. SOFTWOOD INJURY DETERMINATION</title>
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<p><font face="Arial"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1"><strong>December 16, 2003 <em>(2:15 p.m. EST)</em> No. 193</strong></font></p>
<p align="CENTER"><font face="Arial" size="+1"><strong>CANADA REGRETS NEW U.S. SOFTWOOD INJURY DETERMINATION</strong></font></p>
<p><font face="Arial"></font><font face="Arial">The United States International Trade Commission (ITC) has issued a new determination once again asserting
that Canadian softwood lumber exports threatened to injure the United States softwood lumber industry.</font></p>
<p><font face="Arial">"We regret that the ITC has come back with a determination that maintains its threat of injury finding," said
International Trade Minister Jim Peterson. "Canada does not agree with this determination."</font></p>
<p><font face="Arial">In September, a NAFTA dispute settlement panel ruled that the ITC's previous determination was
unsubstantiated and based on speculation. As a result, the NAFTA panel ordered the ITC to issue a new
determination on threat of injury within 100 days.</font></p>
<p><font face="Arial">Canada will be reviewing this new determination and consulting with the provinces and industry prior to deciding
on the next course of action, which could include a challenge of the new determination to the original NAFTA
panel. The panel could return the matter to the ITC for further consideration if it finds this new determination is
inconsistent with U.S. law. </font></p>
<p><font face="Arial">Canada believes that a proper determination will find that Canadian softwood lumber exports did not threaten to
cause injury to U.S. producers and therefore that there is no basis for the duties currently imposed on Canadian
exports.</font></p>
<p><font face="Arial">This is just one of many legal challenges currently under way regarding the Canada-U.S. softwood lumber
dispute.</font></p>
<p><font face="Arial">The Government of Canada will continue to work with the provinces and industry on our two-track strategy of
litigation before NAFTA and World Trade Organization panels and negotiations to find a lasting resolution to
this dispute. In this context, Canada is reviewing a recent U.S. proposal for a settlement of the dispute and
consulting with stakeholders.</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">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><a href="https://bac-lac.wayback.archive-it.org/web/20071206015025/http://www.dfait-maeci.gc.ca/"><font face="Arial">http://www.dfait-maeci.gc.ca</a></font></p>
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