SOFTWOOD LUMBER: CANADA STEPS UP PRESSURE ON U.S.

News Release

January 13, 2005 No. 6 International Trade Minister Jim Peterson announced today that the Government of Canada will initiate a North American Free Trade Agreement (NAFTA) challenge of the final results of the first administrative review of countervailing duties imposed by the United States on softwood lumber imports from Canada. “Canadians are justifiably shocked at recent U.S. actions in the softwood lumber dispute,” said Minister Peterson. “Canada will continue to challenge these actions and ensure that the United States abides by its international trade obligations. The international rules-based trading system is founded on predictable and transparent rules that must be adhered to. The Government of Canada will continue to work with the provinces and territories and with industry to see an end brought to this dispute.” The countervailing duty administrative review issued on December 14, 2004, by the U.S. Department of Commerce determined a new duty rate of 17.18 percent, down slightly from the original rate of 18.79 percent. Separately, the Government of Canada has filed a notice of intent to appeal the U.S. International Trade Commission (ITC) threat of injury determination, issued on November 24, 2004, before the U.S. Court of International Trade (CIT). Canada has also filed a notice of intent to challenge the countervailing and anti-dumping duty orders amended to reflect the new ITC determination. In addition, on December 30, 2004, Canada challenged the measure taken by the U.S. to comply with a World Trade Organization (WTO) ruling in the subsidy case. To protect its retaliatory rights, Canada also sought authority to retaliate on a maximum of C$200 million of U.S. imports. This figure represents the trade impact on Canadian exporters resulting from the improper U.S. implementation in the WTO subsidy case. Retaliation will only be considered in the event that Canada wins in these proceedings. In the NAFTA injury case, the U.S. requested an Extraordinary Challenge Committee in response to the ITC determination that Canadian softwood lumber imports do not threaten to injure the U.S. industry. Canada has selected its Committee members and calls on the U.S. to do the same to avoid further delay in this case. Minister Peterson will continue to consult regularly with provincial and territorial counterparts and industry representatives to encourage the development of a pan-Canadian position on the elements necessary for a durable resolution of the dispute. The Government of Canada will continue to pursue other avenues to advocate Canadian interests in the U.S. These include considering retaliation in response to the Byrd Amendment and initiating trade advocacy days to build on other awareness activities already underway. - 30 - For further information, media representatives may contact: Jacqueline LaRocque Director of Communications Office of the Minister of International Trade (613) 992-7332 Media Relations Office International Trade Canada (613) 995-1874 http://www.international.gc.ca

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2016-12-15

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SOFTWOOD LUMBER: CANADA STEPS UP PRESSURE ON U.S.

News Release

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