NEWS RELEASES
APPEAL OF WTO PANEL RULING
March 25, 1999 (5:00 p.m. EST) No. 64
APPEAL OF WTO PANEL RULING
International Trade Minister Sergio Marchi and Agriculture and Agri-Food Minister Lyle Vanclief today announced that Canada intends to appeal
the World Trade Organization (WTO) report that suggests Canada's dairy pricing system could be considered an export subsidy and
recommends changes to how Canada administers the Tariff Rate Quota (TRQ) for fluid milk.
"Governments and industry have worked closely together in a Team Canada approach to defend the Canadian dairy industry's interests in this
challenge by the United States and New Zealand," said Mr. Marchi.
"The Government of Canada shares the industry's serious concerns about the panel report," said Mr. Vanclief. "The sector adopted its classified
pricing system in 1996 to comply with the new WTO rules, and we do not think it should be considered an export subsidy. We stand with our
industry on this."
Under WTO rules, it will probably be late May before Canada can officially announce any formal appeal.
Canadian dairy farmers price their milk according to its end use through a classified pricing system. The U.S. and New Zealand argued that parts
of the classified pricing system constitute an export subsidy. Canada argues that they are not an export subsidy.
The panel report also recommends changes in the administration of Canada's TRQ for fluid milk. The report did not challenge Canada's right to
limit fluid milk imports through a TRQ. However, the panel found that the TRQ should be open to both commercial imports and to cross-border
shoppers.
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For further information, media representatives may contact:
Leslie Swartman
Office of the Minister for International Trade
(613) 992-7332
Sylvie Millette LeDuc, Press Secretary
Office of the Minister of Agriculture and Agri-Food
(613) 759-1761
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
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