November 7, 2005
No. 208
International Trade Minister Jim Peterson today announced that Canada has filed a
brief opposing the last-minute request by the U.S. Department of Commerce (DOC) for
clarification of the NAFTA subsidy panel’s latest ruling regarding softwood lumber.
“The U.S. is now resorting to obvious delay tactics to avoid the inevitable,” said Minister
Peterson, adding that if the DOC had responded as instructed by the panel, it would
have found no subsidy. “Canada opposes the DOC request. We continue to insist that
the duties be returned to Canadians and that NAFTA be respected.”
Instead of following the NAFTA panel’s instructions to issue a remand subsidy
determination on October 28, 2005, the DOC requested that the panel provide
clarifications to its October 5, 2005, ruling and extend the deadline for a U.S. response.
In addition, the DOC has asked for permission to file its remand determination 10 days
after having received clarification from the panel.
On October 5, the panel provided the DOC with clear instructions on how to calculate
the subsidy level. The DOC was instructed to change only one element of the
countervailing duty calculations and issue a determination by October 28.
The filing of Canada’s brief to the NAFTA panel follows a meeting between Minister
Peterson and Canada’s legal team in Toronto on Monday, October 31.
“Since August we’ve been urging the U.S. to respect NAFTA,” added Minister Peterson.
“With all the benefits it brings to both our countries, why undermine it by ignoring the
rules?”
On August 10, 2005, a NAFTA Extraordinary Challenge Committee (ECC) decision
effectively confirmed that the U.S. had failed to prove that its domestic lumber industry
is being materially injured or threatened with injury as a result of Canadian softwood
lumber imports. As a result of that decision, the U.S. is legally obligated to revoke the
anti-dumping and countervailing duty orders, refund deposits, and terminate all ongoing
administrative reviews. Canada is challenging the U.S. failure to comply with the ECC
decision before the U.S. Court of International Trade.
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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
