TAYLOR DISAPPOINTED IN LATEST SOFTWOOD LUMBER RULING

Released on December 17, 2003

Government Relations Minister Len Taylor is disappointed in Tuesday's remand decision by the United States (U.S.) International Trade Commission (ITC) that continues to claim that Canadian softwood lumber exports represent a threat to the U.S. industry.

The ITC's original decision alleging threat of injury had been appealed under the North American Free Trade Agreement (NAFTA). The NAFTA panel ruled on September 5th, 2003, that the ITC had no basis on the evidence before it to conclude that softwood lumber exports from Canada injured or threatened to injure U.S. lumber producers. The panel therefore asked the ITC to review its original threat of injury determination.

"Although the decision is disappointing, it was not entirely unexpected," Taylor said. "The U.S. continues to employ every means possible to keep Canadian firms under the crushing burden of these unfair duties."

A revised ITC injury determination, consistent with the NAFTA panel's direction, would have found no threat of injury. Such a ruling would have forced the U.S. to remove the 27 per cent duties that are now placed on Canadian softwood lumber shipments.

"I am hopeful that the Canadian softwood lumber industry, which leads in the defence of Canadian interests on injury investigations, will seek to have the NAFTA panel again remand the decision back to the ITC for a ruling that is consistent with the panel's findings."

Saskatchewan remains committed to the Canadian efforts to challenge U.S. actions against softwood lumber through both the NAFTA and World Trade Organization dispute settlement mechanisms. However, as yesterday's developments illustrate, the progress is slow and future U.S. trade action remains an ongoing reality. As such, Saskatchewan continues to work with other affected provinces and the federal government to find a mutually acceptable long-term negotiated solution to this dispute.

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For More Information, Contact:

Anna Arneson Government Relations and Aboriginal Affairs Regina Phone: (306)787-8008