Meat Industry INSIGHTS Newsletter

970860 WTO Rejects European Ban on Canadian Beef

August 25, 1997

OTTAWA - A World Trade Organization panel has rejected the European Union's ban on imports of Canadian beef, the Canadian government said on Monday.

"The WTO panel report supports Canada's long-standing position that the import ban imposed by the EU was not consistent with its obligations under the WTO," Canadian Trade Minister Sergio Marchi said in a statement.

In 1989, the European Union imposed a ban on imports of Canadian beef produced with growth-promoting hormones. The EU argued that the ban was a health protection measure, the Canadian government.

But international studies have shown that use of the growth hormones in question do not hurt beef consumers, the Canadian government said.

"This ruling is an important step toward re-opening access to European markets for Canada's high-quality beef and beef byproducts," Agriculture Minister Lyle Vanclief said.

Canada requested a WTO settlement dispute panel in 1996 after direct talks with the EU failed to find a solution. The EU has a right to appeal the finding, the government said.

A WTO panel had already backed the United States in a similar complaint. The European Commission has said it would likely appeal the decision.

If the EU loses an appeal, but still declines to act, the WTO's dispute settlement body could ask the EU to pay compensation for the amount of trade lost.

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