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<title>CANADA DISAPPOINTED WITH WTO APPELLATE BODY'S DECISION </title>
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<p><font face="Arial"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1"><strong></strong></font><font face="Arial" size="+1"><strong>March 12, 2001 <em>(1:25 p.m. EST)</em> No. 31</strong></font></p>
<p align="CENTER"><font face="Arial" size="+1"> </font><font face="Arial"><strong></strong></font><font face="Arial" size="+1"><strong>CANADA DISAPPOINTED WITH </strong></font></p>
<p align="CENTER"><font face="Arial" size="+1"><strong> WTO APPELLATE BODY'S DECISION </strong></font><font face="Arial" size="+1"></font><font face="Arial"></font></p>
<p><font face="Arial">The Appellate Body of the World Trade Organization (WTO) today upheld the main
finding in the final report of a WTO panel, which was asked to rule on a decree banning
asbestos in France. In its report issued on September 18, 2000, the panel found that
the order in question was in compliance with the WTO agreements.</font></p>
<p><font face="Arial">Last September, a WTO panel determined that although the order prohibiting asbestos
in France was discriminatory, it was in compliance with provisions in WTO agreements
allowing member countries to adopt measures for the protection of human health. On
October 23, 2000, Canada appealed some aspects of the panel report.</font></p>
<p><font face="Arial">"We are disappointed with the Appellate Body report," said International Trade Minister
Pierre Pettigrew. "While in substance the Appellate Body upheld the findings regarding
compliance of the French prohibition measure with WTO agreements, it also clarified
some legal points and, to Canada's satisfaction, reversed an important aspect of the
report relating to jurisprudence." Specifically, the Appellate Body determined that
general prohibitions on products, like the one on chrysotile asbestos, are subject to the
rules and disciplines of the WTO Agreement on Technical Barriers to Trade. This part of
the decision establishes guidelines for possible general prohibitions of other products in
the future.</font></p>
<p><font face="Arial">France opted for a complete prohibition of asbestos in order to manage potential risks
associated with exposure to asbestos within its borders. Canada in no way disputes the
right of countries to adopt regulations in the public interest or establish appropriate
levels of protection, particularly on public health grounds. </font></p>
<p><font face="Arial">"In Canada, we achieve the same health protection objectives through our policy of
controlled use of certain specific applications of chrysotile asbestos," said Natural
Resources Minister Ralph Goodale. "Canada's policy of safe use is well founded
because it has a sound scientific basis and is a responsible approach."</font></p>
<p><font face="Arial">"I wish to thank our stakeholders, the Government of Quebec and representatives of the
asbestos industry, for their involvement and their valuable collaboration throughout the
WTO proceedings," added Mr. Pettigrew.</font></p>
<p><font face="Arial">The Appellate Body report will be adopted at a future meeting of the WTO Dispute
Settlement Body.</font></p>
<p><font face="Arial">For more information, please consult the following Web site:</font></p>
<p><a href="https://bac-lac.wayback.archive-it.org/web/20061209062204/http://www.dfait-maeci.gc.ca/tna-nac/"><font face="Arial">http://www.dfait-maeci.gc.ca/tna-nac/</a></font></p>
<p align="CENTER"><font face="Arial"></font><font face="Arial">- 30 -</font></p>
<p><font face="Arial">For further information, media representatives may contact:</font></p>
<p><font face="Arial">Sébastien Théberge</font></p>
<p><font face="Arial">Office of the Minister for International Trade</font></p>
<p><font face="Arial">(613) 992-7332</font></p>
<p><font face="Arial">Media Relations Office</font></p>
<p><font face="Arial">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Arial">(613) 995-1874</font></p>
<p><font face="Arial"></font><font face="Arial">Pat Breton</font></p>
<p><font face="Arial">Natural Resources Canada</font></p>
<p><font face="Arial">(613) 996-2007</font></p>
<p><font face="Arial">This document is also available on the Department of Foreign Affairs and International
Trade Web Site:<a href="#http://www.dfait-maeci.gc.ca"></a> <a href="https://bac-lac.wayback.archive-it.org/web/20061209062204/http://www.dfait-maeci.gc.ca/">http://www.dfait-maeci.gc.ca</a></font></p>
<p><font face="Arial">To access the backgrounder on chrysotile asbestos prepared by</font></p>
<p><font face="Arial">Natural Resources Canada, go to: <a href="https://bac-lac.wayback.archive-it.org/web/20061209062204/http://www.nrcan.gc.ca:80/mms/bulletin-e.htm">http://www.NRCan.gc.ca:80/mms/bulletin-e.htm</a></font></p>
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