LAUTERMILCH LAUDS FAVOURABLE SOFTWOOD RULING

Intergovernmental and Aboriginal Affairs Minister Eldon Lautermilch is pleased that the North American Free Trade Agreement (NAFTA) panel ruled in favour of Canada again today.

The NAFTA panel ruled today that the United States (U.S.) International Trade Commission erred in finding that softwood lumber exports from Canada injured or threatened to injure U.S. lumber producers.

"This ruling sends a clear message to the U.S. government that it acted inappropriately in all facets of the countervailing duty investigation launched against Canadian lumber exports," Lautermilch said. He noted that in August NAFTA ruled that the U.S. used flawed methodology in calculating the level of the countervailing duty on Canadian softwood lumber exports.

"I am hopeful that the U.S. authorities will take the necessary measures to correct its determinations of subsidy and injury, determinations that didn't even comply with their own trade laws, and act expeditiously to remove the offending duties."

While Canadian efforts to challenge U.S. actions against softwood lumber through both the NAFTA and World Trade Organization dispute settlement mechanisms are working, progress is slow and persistent uncertainty about future U.S trade actions continues to hurt the Canadian industry.

Saskatchewan continues to work with other affected provinces and the federal government to find a mutually acceptable long term solution to this ongoing dispute.

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For More Information, Contact:

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