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<p><font face="Arial"></font><font face="Arial" size="+1"></font><font size="+1"><strong>July 16, 2004 <em>(1:00 p.m. EDT)</em> No. 78</strong></font><font size="+1"></font><font face="Arial" size="+1"></font></p>
<p align="CENTER"><font face="Arial" size="+1"><strong>NAFTA PARTNERS RECOMMIT TO<br>
FULL IMPLEMENTATION OF NAFTA</strong></font></p>
<p><font face="Arial">International Trade Minister Jim Peterson met today with United States Trade
Representative Ambassador Robert B. Zoellick, and Mexican Secretary of the Economy
Fernando Canales at the 10th annual ministerial meeting of the North American Free
Trade Agreement (NAFTA) Commission in San Antonio, Texas.</font></p>
<p><font face="Arial">The ministers reaffirmed their commitment to build on NAFTA's achievements over the
last decade with a view to generating continued strong growth in trade and investment
in North America. </font></p>
<p><font face="Arial">While noting that more than 95 percent of NAFTA trade is dispute free, Minister
Peterson reiterated the need for political will among the parties to ensure compliance
with NAFTA dispute settlement results (Chapter 19), thereby protecting the integrity of
the agreement. He reiterated concerns about a recent softwood case where the U.S.
denied the refund of duty deposits on a retroactive basis.</font></p>
<p><font face="Arial">"My colleagues and I celebrated the benefits generated by NAFTA over the last 10
years, but we also explored ways it could be enhanced and built upon," said Minister
Peterson. "I am pleased that NAFTA partners are joining me today to reaffirm their
commitment to the effective implementation of the NAFTA dispute settlement system."</font></p>
<p><font face="Arial">Canada will continue to monitor developments closely.</font></p>
<p><font face="Arial">In order to further benefit businesses, workers and consumers, the ministers also
agreed on a series of measures, including the following:</font></p>
<p><font face="Arial">• Implementation of a package of liberalized rules of origin for a broad range of
foods and consumer and industrial products. Rules of origin determine whether a
product benefits from duty-free treatment;</font></p>
<p><font face="Arial">• Continued consideration by officials of new requests on rules of origin from their
respective industries;</font></p>
<p><font face="Arial">• The release of the Chapter 11 draft negotiating texts; and</font></p>
<p><font face="Arial">• An agreement to bring the NAFTA into full compliance with the World Trade
Organization (WTO) decision on access to medicines.</font></p>
<p><font face="Arial">In a separate meeting with U.S. Trade Representative Zoellick, Minister Peterson
discussed the status of the WTO negotiations, softwood lumber and BSE, and urged
the prompt resumption of trade in live cattle.</font></p>
<p><font face="Arial">Mexico will host next year's Commission meeting.</font></p>
<p><font face="Arial">The full text of the Joint Statement will be available at
<a href="https://bac-lac.wayback.archive-it.org/web/20071123083440/http://www.dfait-maeci.gc.ca/trade/nafta-alena/celeb2-en.asp" target="_top">http://www.dfait-maeci.gc.ca/trade/nafta-alena/celeb2-en.asp</a>.</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">Jacqueline LaRocque<br>
Director of Communications<br>
Office of the Minister of International Trade<br>
(613) 992-7332</font></p>
<p><font face="Arial">Media Relations Office<br>
Foreign Affairs Canada and International Trade Canada<br>
(613) 995-1874<br>
<a href="https://bac-lac.wayback.archive-it.org/web/20071123083440/http://www.dfait-maeci.gc.ca/">http://www.dfait-maeci.gc.ca</a></font></p>
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