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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">September 10, 2004 <i>(7:20 p.m. EDT)</i> No. 103</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">CANADA PLEASED WITH U.S. SOFTWOOD LUMBER NEGATIVE
INJURY DETERMINATION</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 issued the following statement
concerning the United States International Trade Commission (ITC) determination that
there is no threat of injury to the U.S. domestic industry from Canadian softwood lumber
imports:</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“We are pleased that the ITC has reached the conclusion that Canadian softwood
lumber exports do not threaten to injure the U.S. industry.</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“This ITC determination supports what we have been saying all along. Canadian
exports of softwood lumber products do not threaten the U.S. domestic industry with
material injury, and there is no basis for either the countervailing or anti-dumping duties.</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“This determination eliminates the basis for the U.S. to impose anti-dumping and
countervailing duties. It is now time for the U.S. to revoke the duties imposed on
Canadian softwood lumber exports and to bring an end to this dispute, a move that is
long overdue. We look to the U.S. to refund the duties paid by Canadian softwood
lumber exporters as soon as possible.”</span></span></p>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">For more information regarding Canada’s legal challenges against the U.S. at the World
Trade Organization and under NAFTA, please visit
</span></span><a href="https://bac-lac.wayback.archive-it.org/web/20071125235820/http://www.dfait-maeci.gc.ca/eicb/softwood/legal_action-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/eicb/softwood/legal_action-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><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">More information on softwood lumber issues in general is available at
</span></span></span><a href="https://bac-lac.wayback.archive-it.org/web/20071125235820/http://www.softwoodlumber.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.softwoodlumber.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="font-size: 12pt"><span style="color: #000000">- 30 -</span></span></span></p>
<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>
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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Jacqueline LaRocque<br>
Director of Communications<br>
Office of the Minister of International Trade<br>
(613) 992-7332<br>
Cell: (613) 240-4167</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">Media Relations Office<br>
Foreign Affairs Canada and International Trade Canada<br>
(613) 995-1874<br>
</span></span></span><a href="https://bac-lac.wayback.archive-it.org/web/20071125235820/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">CHRONOLOGY OF KEY EVENTS</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">May 16, 2001:</span> The United States International Trade Commission (ITC) issued a
preliminary determination that Canadian softwood lumber exports to the U.S. had not
injured the U.S. industry, but only posed a threat of injury.</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">May 2, 2002: </span>The ITC voted 4 to 0 that the U.S. softwood lumber industry was
threatened with material injury by reason of imports of softwood lumber from Canada
that were found by the U.S. Department of Commerce to be subsidized and dumped in
the U.S.</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">May 22, 2002:</span> A binational panel was established under NAFTA Chapter 19 to review
whether the ITC’s threat of injury determination was contrary to U.S. law.</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">September 5, 2003:</span> The Panel issued its first report and found the ITC’s threat of injury
determination to be inconsistent with U.S. law.</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">December 15, 2003:</span> The ITC issued a threat of injury remand determination that
reaffirmed its original finding that the U.S. domestic industry was threatened with injury.</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">April 29, 2004:</span> The Panel issued its second report and found the ITC’s threat of injury
remand determination inconsistent with U.S. law.</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">June 10, 2004: </span>The ITC issued a second threat of injury remand determination that,
once again, found that the U.S. domestic industry was threatened with injury by reason
of allegedly dumped and subsidized softwood lumber exports from Canada.</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">August 31, 2004:</span> The Panel issued its third report and found the ITC’s second threat of
injury remand determination inconsistent with U.S. law.</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">September 10, 2004:</span> The ITC issued its third remand determination and concluded
that Canadian softwood lumber exports do not threaten to injure the U.S. domestic
industry.</span></span></span></p>
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