CANADA VOWS TO FIGHT U.S. POTASH ACTION

  External Affairs Minister Joe Clark
  today vowed to do everything possible to fight the U.S. action
  against Canadian potash exports, but also warned against
  raising the alarm too early in the dispute.
      In the latest flashpoint in Canadian-U.S. trade relations,
  the U.S. International Trade Commission ruled unanimously
  Monday that Canadian potash shipments valued at 270 million
  U.S. dlrs last year were injuring the U.S. industry.
      "We certainly intend to do everything we can to insure that
  Canadian interests are well protected," Clark told the House of
  Commons in the daily question period.
      But he said the opposition parties should be careful "not
  to raise false alarms too early."
      The case now goes before the U.S. Commerce Department's
  trade division to determine if a duty should be imposed. Potash
  producers from New Mexico, claiming unfair government
  subsidies, are seeking a 43 pct tariff on Canada's shipments.
      Canada, the world's largest potash producer, exported 9.8
  mln metric tonnes of potash last year, with nearly a third
  going to the U.S.
      Most of the potash, used in the production of fertilizer,
  comes from provincially owned mines in Saskatchewan.
      In the Commons, Liberal member Lloyd Axworthy branded the
  ruling as just another "trade harrassment" from the U.S. and
  criticized Clark's assurances the country's interests would be
  protected.
      "We received exactly the same kind of assurances in the
  softwood lumber case that was totally fumbled and bumbled,"
  Axworthy said.
      Canada's Progressive Conservative government agreed to
  impose a 15 pct duty on its softwood lumber exports earlier
  this year to end a long and bitter bilateral trade dispute with
  the U.S.
      Axworthy urged the government to present Canada's case to
  world trade authorities under the General Agreement on Tariffs 
  and Trade.
      But Clark maintained the potash dispute was another example
  of why Canada needs to find a new way to settle bilateral
  irritants in the free trade negotiations under way with the
  U.S.
      "What we are seeking to do is put in place a better
  system," Clark said.
      Meanwhile, Saskatchewan Trade Minister Bob Andrew expressed
  confidence Canada would win its case, claiming the problem
  stems from low international commodity prices and not
  government subsidies.
      "The reality of the problem and the injury is caused
  worldwide," he said. "It's caused by a downturn in the
  commodity price for fertilizer, whether it's potash fertilizer,
  nitrogen fertilizer or whatever."
  

