NEWS RELEASES

January 2, 2001 (5:00 p.m. EST) No. 1

CANADA REQUESTS NAFTA CONSULTATIONS ON U.S.

RESTRICTIONS ON PRINCE EDWARD ISLAND POTATOES

Canada has requested NAFTA consultations with the United States with respect to U.S. restrictions on imports of potatoes from Prince Edward Island, International Trade Minister Pierre Pettigrew and Agriculture and Agri-Food Minister Lyle Vanclief announced today.

"The Canadian government has been making high-level representations to the U.S. administration to remove the restrictions," said Minister Pettigrew. "Canada believes that the restrictions have no scientific justification, constitute an unjustified barrier to trade, and violate the United States international trade obligations."

"Canada has science on its side," said Minister Vanclief. "The continuing U.S. insistence on unreasonable conditions for reopening the border to PEI potatoes is completely unacceptable. We have stressed this to U.S. officials, and will continue consulting closely with industry and government in PEI on ways to ensure that this issue is resolved as quickly as possible."

On October 31, the United States Department of Agriculture (USDA) closed the border to imports of potatoes from PEI. This action followed confirmation by the Canadian Food Inspection Agency (CFIA) of the presence of potato wart disease in one field in Prince Edward Island. The CFIA responded quickly by putting controls in place to prevent the spread of the disease and to protect the disease-free status of potatoes in the rest of the province and in other provinces.

The CFIA has been involved in extensive discussions with the USDA in an effort to remove the ban. On December 13, the USDA wrote to the CFIA, providing assurances that the border would be open to imports from PEI. Unfortunately, the United States did not implement the terms of this letter. Following further discussions, USDA officials wrote again to the CFIA on December 29, establishing more restrictive conditions than those described in the December 13 letter.

Canada's request for NAFTA consultations was submitted today. As the matter involves perishable products, Canada has requested that the consultations be held within 15 days. Canada will continue bilateral efforts to resolve the issue pending the consultations.

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This document is also available on the Department of Foreign Affairs and International Trade's Internet site:

http://www.dfait-maeci.gc.ca