PC PRESS RELEASE

Threat to withdraw government support unconscionable.

FOR IMMEDIATE RELEASE: May 11, 2006 Toronto, ON – It is unconscionable the Government of Canada overtly threatened the Canadian softwood industry in order to obtain acquiescence to its hurriedly thrown together Agreement with the Administration of the United States.

"The industry will be on its own in every respect -- financial, diplomatic and legal." is the threat alleged in a report which states concerning the Agreement "If the seven-year agreement is ratified, the Canadian industry will face permanent restrictions on its access to the U.S. market, as well as rates of tax that will consistently exceed any duty rates that may have survived a bid to end the dispute through a process of litigation." (Three lumber groups attack Ottawa over softwood deal )

The United States has challenged this March 17, 2006 finding: "The NAFTA panel affirmed the DOC’s finding that Canadian softwood lumber production is not subsidized." At that time the Minister Emerson is quoted in a Government of Canada Press release as stating “We will be working with the provinces and industry toward a resolution that is in Canada’s best interest."

http://w01.international.gc.ca/minpub/Publication.asp?publication_id=383767&Language=E

"The interests of consumers in the United States are negatively affected. This deal will ensure that Canadian lumber prices are kept at artificially high levels to avoid competing fairly with U.S. providers. It’s important to remember that these actions have been deemed illegal under the North American Free Trade Agreement. Canadian producers and their employees are being bullied into accepting a bad deal and a bad precedent" stated Tracy Parsons, Leader of the PC Party.

It is the position of the Progressive Canadian (PC) Party that Canada's best interests are served by proceeding with litigation before the NAFTA panel. The Agreement arrived at serves only the interests of the two governments and the Coalition for Fair Lumber Imports which has applauded "the tireless efforts of the Bush Administration officials who negotiated a means of offsetting Canadian unfair lumber practices."

http://www.fairlumbercoalition.org/origdocs/releases/press_release_4-27-06.pdf)

Jim Love, PC Party President's asks “Is this what Mr. Harper means when he says Stand up for Canada?” Once again, the U.S. refuses to honour the treaties that they have signed – as they did under the Liberals. The difference this time is that the U.S. can now depend on their man in Ottawa, Stephen Harper, to not only take a bad deal, but to put a positive spin on it for them. They announce a victory, when we get nothing of the sort. They (the U.S.) still keep a large chunk of money illegally taken from Canadian producers . In return, we get a seven year term that guarantees nothing thanks to a little noticed term that will add an “export tax” when prices fall. By not continuing to final determination by NAFTA Mr. Harper is not only refusing to “stand up for Canada” – he’s given every other special interest group the blueprint for an end run around any trade agreement we sign.

The Progressive Canadian (PC) Party is a registered Federal Political Party comprised of progressive-conservative minded Canadians rebuilding from the roots of the former Progressive Conservative Party. For more information on the PC Party, it’s policies, structure or general information, go to http://www.progressivecanadian.org/ or call 866-812-6972.

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For more information or to request an interview, please contact:Jim Love, PresidentProgressive Canadian Party(647) 403-5519jim.love@pcparty.org