FOR IMMEDIATE RELEASE
August 10, 2001

Contact: Trevor Francis
202-482-4883
Greg Jenkins
202-482-3809

U.S. SECRETARY OF COMMERCE DON EVANS ANNOUNCES
AFFIRMATIVE PRELIMINARY DETERMINATION IN
SUBSIDY INVESTIGATION ON SOFTWOOD LUMBER FROM CANADA

U.S. Commerce Secretary Don Evans today announced that the Department of Commerce has made an affirmative preliminary determination in its countervailing duty (subsidy) investigation on imports of softwood lumber from Canada.

"This decision was one that the Department reached after careful consideration of the law and the facts on the record. I'm pleased that this process has been open and transparent and that all parties have had full opportunity to have their views heard. I look forward to continuing to work with all parties, including our friends in Canada, as this case proceeds to a final determination," said Evans.

As a result of the Department's finding, Canadian softwood lumber imports will become subject to import duties based on a net countervailable subsidy rate of 19.31 percent. These duties will be applied as of the date of publication of the preliminary determination, expected by August 20, 2001.

As part of its preliminary determination, the Department has also made an affirmative preliminary finding of critical circumstances. Critical circumstances refers to a provision in trade laws that is designed to prevent import surges before dumping or countervailing duties are imposed, and allows the potential retroactive imposition of duties on imports. If the Department and the International Trade Commission make final affirmative determinations that critical circumstances exist, duties will be imposed retroactively, 90 days prior to the publication of the preliminary determination.

The Department initiated the investigation based on a petition filed by the U.S. lumber industry after the expiration of the Softwood Lumber Agreement on March 31, 2001.

More information on the determination is available www.trade.gov/media under All Recent News

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