ANOTHER VICTORY FOR SOFTWOOD LUMBER PRODUCERS

Canadian softwood lumber producers are moving one step closer to winning their trade dispute with the United States today.

Another of the trade panels considering Canada's legal challenges against the U.S. duties placed on Canadian softwood lumber shipments has ruled in Canada's favour. This ruling is particularly important because it deals with the threat of injury determination, without which the U.S. cannot maintain either the dumping or the countervailing duty order.

"The panel carefully examined the latest U.S. threat of injury determination and once again found it to be completely lacking in the evidence required to support these duties," Government Relations Minister Len Taylor said. "This is the second time that this panel has directed the U.S. International Trade Commission (USITC) to re-consider its findings that Canadian exports threaten to injure U.S. producers. The commission now has 21 days to respond."

"The Canadian and Saskatchewan forestry sectors have faced considerable uncertainty, and endured significant financial hardship, since these unfair duties were imposed by the U.S. in May 2002," Environment Minister David Forbes said. "The province supports continued legal action to fight these duties as long as the duties remain in place. But we are also committed to trying to find a mutually – acceptable settlement that can deliver sustainable development of our forestry sector."

"It is hoped that the U.S. will readily comply with the ruling and abandon their trade action," Taylor added. "Past actions would suggest further delays as the U.S. exhausts all procedural avenues."

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For More Information, Contact:

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