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."