Dispute Settlement
May 16, 2000
H.E. Dr Geoff Raby
Ambassador and Permanent Representative
Permanent Mission of Australia to the WTO
Chemin des fins 2
1211 Geneva
Dear Ambassador,
Thank you for your letter of today's date which reads:
"This letter is to confirm the agreement reached between the Governments of Australia and Canada regarding the dispute "Australia - measures Affecting Importation of Salmon (WT/DS18)".
Further to consultations regarding the implementation by Australia of the recommendations and rulings adopted by the Dispute Settlement Body in the dispute "Australia - Measures Affecting Importation of Salmon (WT/DS18)", Australia and Canada have reached the following mutually agreed solution:
The requirement(1) that fresh, chilled or frozen salmon product imported into Australia be released from quarantine only if it is in consumer-ready form as defined in AQPM 1999/69 will no longer apply. The consumer-ready specifications would be replaced with the following requirements:
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Imported salmon product must be in at least head-off, gilled and gutted form.
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Holders of import permits would be required to provide a declaration in relation to each imported consignment of salmon product that such product will only be sold for commercial processing at AQIS approved premises, for processing for retail sale or for direct retail sale. Alternatively holders of permits could enter into compliance agreements with AQIS that provide for importation under the same conditions.
The existing condition that commercial processors must have a compliance agreement with AQIS would remain in place. A compliance agreement would also be required for premises processing imported product for retail sale where such processing would lead to the generation of volumes of waste comparable with that produced in commercial processing (ie the processing of more than 300kg of imported salmon product daily in a single location).
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Commercial processing is defined as the processing undertaken at a commercial premises that produces product for sale at another premises or location.
Processing for retail sale is defined as the processing undertaken at the premises (eg fish mongers, restaurant, hotel or institution) where the resulting product will be directly sold to or used by consumers.
Direct retail sale is defined as the sale to or use by consumers at a premises (eg supermarket, delicatessen, hotel, restaurant or institution) where the product is marketed or used in the same form (ie without processing) in which it was imported into Australia.
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AQIS approval for commercial processing would be granted for premises that dispose of wastes via municipal and commercial systems for the disposal of sewage and solid wastes provided that such disposal does not present an unacceptable risk to significant salmonid populations(2) or create significant new exposure pathways(3).
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AQIS approval, under the same provisions as in paragraph 4 above, will also be required for processing for retail sale, where such processing would lead to the generation of volumes of waste comparable with that produced in commercial processing (ie the processing of more than 300kg of imported salmon product daily in a single location).
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Imported salmon product should be packaged in a manner that is appropriate to its intended end use. Other equivalent arrangements would be considered on a case by case basis taking into account end user requirements.
For processing for retail sale and direct retail sale:-
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Head-off, gilled and gutted fish (trunks) may be individually packaged in plastic sleeves. Alternatively multiple trunks for retail sale may be packaged in a plastic bag within a plastic tote, cardboard or polystyrene container with maximum weight 60lb (27.3kg).
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Pieces such as fillets and cutlets that are fresh may be individually packaged in plastic sleeves. Alternatively, they may be loose packed within a plastic bag in a plastic tote, cardboard or polystyrene container with maximum weight 60lb (27.3kg).
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If frozen, portions and pieces may be individually packaged in plastic sleeves. Alternatively, they may be individually quick frozen (IQF) or vacuum packed in plastic or coated with frozen brine (glaze) and packed within a plastic bag in a plastic tote, cardboard or polystyrene container with maximum weight 60lb (27.3kg).
For commercial processing:-
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Product of head-off, gilled and gutted form or further processed may be packed in plastic totes, cardboard or polystyrene containers with no weight restrictions.
Australia will adhere to its obligations under Article 13 of the SPS Agreement, including formulating and implementing positive measures and mechanisms in support of the observance of the provisions of the SPS Agreement by other than central government bodies, including Tasmania.
Australia will implement the amendments to the quarantine policies on fresh, chilled or frozen salmon product, as specified above, by 1 June 2000. In this regard, upon request of Canada, Australia will provide copies of the relevant regulations and other materials pertaining to the new quarantine policies.
Canada and Australia will notify the relevant bodies of the WTO that they have reached a mutually satisfactory solution upon fulfilment of the undertakings set out in this understanding with regard to fresh, chilled or frozen salmon product.
Although the scope of this bilateral agreement is limited to fresh, chilled or frozen salmon product covered by Canada's WTO complaint, the same arrangements will apply to imports of other fresh, chilled or frozen salmonids.
In accordance with the approach identified in AQIS 1999 report on non-viable salmonids, i.e. equivalent approaches to managing risk may be agreed generally or on a case-by-case basis, Australia and Canada are continuing discussion regarding existing certification requirements in relation to the disease ISA.
This letter and your letter of confirmation in reply shall constitute an understanding between our two Governments.
Please accept, your Excellency, the assurances of our highest consideration."
I have the honour to confirm this understanding between our two Governments.
I further confirm that this agreement cannot be interpreted as in any way prejudicing Canada's position in the WTO with regard to Australia's certification requirement for ISA
Yours sincerely,
Hon. Sergio Marchi
Ambassador
Permanent Representative
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1. These provisions apply to salmon product other than from New Zealand.
2. As provided in the IRA, approval will not be given to processing plants within the Delatite and Murrindindi Shires in Victoria, the Snowy Mountains region of New South Wales and all of Tasmania.
3. Practices that present an unacceptable risk are the sale of fresh, chilled or frozen scraps of imported salmon to fishing bait stores and commercial ventures based on feeding wild birds/fish on scraps of imported salmon.
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