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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">August 31, 2004 <i>(5:30 p.m. EDT)</i> No. 100</span></span></span></p>
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<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">SOFTWOOD LUMBER: MINISTER PETERSON WELCOMES THIRD
NAFTA RULING ON THREAT OF INJURY </span></span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">International Trade Minister Jim Peterson today welcomed a North American Free
Trade Agreement (NAFTA) Panel report that found, for the third time, that the U.S.
International Trade Commission (ITC) threat of injury determination was inconsistent
with U.S. law. </span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“This is the third time that this NAFTA panel has ruled that the International Trade
Commission has failed to properly demonstrate that Canadian softwood lumber exports
threaten to injure the U.S. softwood lumber industry,” said Minister Peterson. “It is clear
that duties on Canadian softwood lumber exports are unjustified.”</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">In a strongly worded decision, the NAFTA Panel instructed the ITC to issue a
determination consistent with the Panel’s ruling within 10 days. </span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">On May 22, 2002, the ITC determined that the U.S. softwood lumber industry was
threatened with material injury by alleged subsidized and dumped imports of softwood
lumber from Canada. This threat of injury determination followed U.S. Department of
Commerce subsidy and dumping determinations, and resulted in the imposition of
countervailing duties (18.79 percent) and anti-dumping duties(8.43 percent).</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Canada also challenged the ITC’s threat of injury determination at the World Trade
Organization (WTO). On April 26, 2004, the WTO Dispute Settlement Body adopted a
WTO Panel report that found the ITC’s threat of injury determination to be inconsistent
with WTO rules.</span></span></p>
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<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">- 30 -</span></span></p>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">For further information, media representatives may contact:</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Jacqueline LaRocque<br>
Director of Communications<br>
Office of the Minister of International Trade<br>
(613) 992-7332</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Media Relations Office<br>
Foreign Affairs Canada and
International Trade Canada<br>
(613) 995-1874<br>
</span></span><a href="https://bac-lac.wayback.archive-it.org/web/20071207013000/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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