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                                               SOFTWOOD LUMBER


March 26, 2002

The Government of Canada, together with the provinces, worked tirelessly to get an agreement. We put forward solid, serious proposals.

We are disappointed that our fair and reasonable offer could not form the basis of a policy-based solution - a solution that would have been beneficial to all.

Our resolve remains strong. We have said all along that we would not settle for a deal at any cost. Canada is better off with no deal than with a bad deal.

We are always open to resuming good faith negotiations, but the American side will have to back down from the excessive demands that they were making when the negotiations broke off.

Notwithstanding the Department of Commerce’s unfair and punitive final determinations last week, we will continue to challenge the U.S. actions in the WTO and the NAFTA.

We will continue to argue the simple facts: that the Canadian softwood lumber industry's success in the American market reflects its competitiveness – nothing more nothing less.

We will also be talking to our provincial partners and the industry to assess how best to protect the interests of communities and workers.

Our conviction is that we can win this softwood lumber case on its merits. We have in the past and we will in the future.


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