CANADA ASKS WTO TO ESTABLISH DISPUTE SETTLEMENT PANEL TO RESOLVE DISPUTE WITH FRANCE ON CHRYSOTILE ASBESTOS
October 7, 1998 No. 236
CANADA ASKS WTO TO ESTABLISH DISPUTE SETTLEMENT PANEL
TO RESOLVE DISPUTE WITH FRANCE ON CHRYSOTILE ASBESTOS
International Trade Minister Sergio Marchi and Natural Resources Minister Ralph
Goodale today announced that Canada will ask the World Trade Organization (WTO) to
establish a dispute settlement panel for the resolution of the dispute with France
on the issue of chrysotile asbestos.
Canada's request for a panel will be on the agenda at the October 21 meeting of
the WTO dispute settlement body. Canada will ask the panel to examine whether the
French ban on chrysotile asbestos is consistent with France's international
obligations. This decision was taken after a series of discussions with the
Canadian government's partners in this issue.
"Last May, we formally requested and obtained consultations, the first step in the
WTO dispute settlement process," said Mr. Marchi. "Unfortunately, this process did
not enable Canada and France to find a mutually satisfactory resolution to this
issue, and we believe that it is time to have the WTO rule on this dispute, which
we have been attempting to resolve for the past two years."
"The Canadian government's objective is to maintain market access for chrysotile
asbestos products, which can be used safely when the safe-use principle of the
government's minerals and metals policy is respected," said Mr. Goodale.
Since January 1, 1997, France has prohibited the manufacture, import and sale of
asbestos and products containing asbestos, with rare exceptions.
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Two backgrounders are attached.
For further information, media representatives may contact:
Leslie Swartman
Office of the Minister for International Trade
(613) 992-7332
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca
(7:30 p.m. EDT)
Backgrounder
CHRONOLOGY OF DEVELOPMENTS IN THE ASBESTOS ISSUE
In July 1996, the French government announced its intention to ban the
importation and manufacture of asbestos as of January 1, 1997, based on a report
by the Institut national sur la santé et la recherche médicale (INSERM).
Health Canada, via the Royal Society of Canada, began a scientific independent
review of the INSERM report, which was completed in early December 1996.
On November 15, 1996, International Trade Minister Art Eggleton and Treasury
Board President Marcel Massé met in Thetford Mines with community leaders and
asbestos industry stakeholders.
On November 18, 1996, French Prime Minister Juppé responded to Prime Minister
Chrétien's letter on exemptions to the ban.
On December 11, 1996, during a bilateral meeting in Singapore, International
Trade Minister Eggleton discussed the asbestos ban at the European Union level
with Sir Leon Brittan.
On December 12, 1996, Prime Minister Chrétien sent a follow-up letter to French
Prime Minister Alain Juppé.
On January 1, 1997, the French ban was imposed.
From January 9 to 13, 1997, International Trade Minister Eggleton raised his
concerns about Korean market access asbestos issues with his counterpart during
the Team Canada trip.
On January 15, 1997, the Royal Society of Canada released its study on the
French INSERM report. The report confirmed that France had overestimated the real
threat of asbestos to the French population.
On January 22 and 23, 1997, Prime Minister Chrétien again raised the asbestos
issue with his French counterpart, Alain Juppé.
On February 14, 1997, Canadian officials raised the French ban issue at a
meeting of the Technical Barriers to Trade Committee of the World Trade
Organization (WTO). The European Union undertook to report back to the Committee
justifying the ban.
On March 3, 1997, Natural Resources Minister McLellan and Treasury Board
President Massé held a press conference in Thetford Mines after the signing of a
memorandum of understanding between the federal government and the two Canadian
asbestos producers on the responsible use of asbestos.
March 15 to 20, 1997, three French journalists visited the Canadian asbestos
industry on a fact-finding tour at the invitation of the Department of Foreign
Affairs and International Trade (DFAIT), in co-operation with Natural Resources
Canada (NRCan).
In June 1997, Canada again raised the French ban on asbestos issue in the WTO
Technical Barriers to Trade Committee.
On June 18, 1997, the U.K. Environment Minister Angela Eagle announced her
government's intention to ban the use and importation of chrysotile asbestos
products.
On June 20, 1997, Prime Minister Chrétien met with U.K. Prime Minister
Tony Blair at the Denver Summit to raise Canadian concerns about the United
Kingdom's intentions to move toward banning the use of chrysotile asbestos.
In July 1997, International Trade Minister Marchi wrote to domestic stakeholders
to initiate consultations on WTO action on asbestos against France.
On September 11, 1997, consultations on WTO action were held with stakeholders.
September 14 to 16, 1997, NRCan sponsored a scientific workshop in Montréal on
the health risks associated with the use of chrysotile and present-day chrysotile-based products.
September 16 to 19, 1997, NRCan organized and co-sponsored an International
Conference in Montréal on the safe and responsible use of chrysotile fibres. About
300 delegates from 45 countries were present at this event.
On September 17, 1997, the Canadian government announced it would support a
$0.25-million training program to help implement the responsible-use policy for
chrysotile asbestos in developing countries.
On September 30, 1997, a Canadian delegation of asbestos experts met with
officials from the U.K. Health and Safety Executive to exchange scientific
information about the health risks associated with the use of chrysotile asbestos
and to outline concerns regarding the use of substitutes.
In late September 1997, the asbestos issue was raised by the French government
with the Premier of Quebec in Paris.
In October 1997, discussions were held between French and Canadian officials on
possible steps to alleviate Canadian concerns over asbestos, including the
initiation of the "Kouchner process."
On October 22, 1997, Prime Minister Chrétien met U.K. Prime Minister Blair at
the Commonwealth Heads of Government meeting in London, and suggested that further
scientific discussions be held between the United Kingdom and Canada.
On November 26, 1997, the Deputy Minister for International Trade met with
stakeholders in Montréal to discuss WTO action on asbestos.
December 18, 1997, a joint Canada/Quebec meeting was organized with government
and industry representatives from six chrysotile-producing countries (Brazil,
Canada, Russia, South Africa, Swaziland and Zimbabwe) to discuss joint actions in
defence of chrysotile asbestos.
On January 21, 1998, Prime Minister Chrétien wrote to Prime Minister Blair to
assure him of Canada's intention to participate in the consultation process.
In February 1998, the United Kingdom announced it would be pursuing
consultations on workers' safety with respect to chrysotile as opposed to
announcing its intentions to ban the use of asbestos.
In January/February 1998, there were further consultations with stakeholders on
WTO asbestos action.
In February 1998, the European Union issued a directive which, for all intents
and purposes, bans asbestos in brakes.
On February 27, 1998, a diplomatic note was sent to Belgian authorities asking
for justification of the February 3, 1998, decision to ban asbestos. This was
followed by a meeting between Ambassador Jean-Paul Hubert and the Belgian Minister
of State to raise concerns about the Belgian ban decision.
In March 1998, Canada along with other chrysotile-producing countries signed an
aide-mémoire on the responsible use of asbestos. This aide-mémoire was submitted
by the participating Ambassadors to the European Union.
In March, April and May 1998, DFAIT with the co-operation of NRCan organized
visits of the Canadian asbestos industry by Belgian, U.K. and Moroccan
journalists. The purpose of these visits was to brief foreign journalists on the
government's position on the safe use of chrysotile asbestos and to demonstrate
the modern chrysotile asbestos industry.
In April 1998, International Trade Minister Marchi met with his French
counterpart, Minister Dondoux, and raised the asbestos issue.
On April 21, 1998, Deputy Minister for International Trade, Rob Wright, met with
U.K. Environment Minister Angela Eagle to discuss the asbestos file.
On April 22, 1998, the Council of Europe adopted a report that called for a
European ban of asbestos.
In April 1998, French Professor Claude Got visited Canada, followed by France's
Secretary of State Bernard Kouchner.
In May 1998, Canadian concerns over asbestos were raised on various occasions at
the political level in Europe.
On May 14, 1998, Prime Minister Chrétien raised the issue of asbestos with his
counterparts during the Canada/European Union Summit.
On May 28, 1998, International Trade Minister Marchi instructed the Canadian
mission in Geneva to formally request consultations, under the dispute settlement
procedures of the WTO, on the measures taken by France to ban chrysotile asbestos.
On July 8, 1998, Canada and France held formal consultations under the WTO
dispute settlement process, but no resolution of the dispute was achieved.
On July 29, 1998, France released Professor Claude Got's report, whose findings
did not change the French government's decision to impose its ban on chrysotile
asbestos.
On August 18, 1998, International Trade Minister Marchi and Natural Resources
Minister Goodale urged British authorities to weigh objectively the evidence
favouring safe use of chrysotile asbestos in industrial products. The British
government initiated public consultations following a health department report
comparing the health risks of asbestos with substitute materials.
Backgrounder
FLOW CHART OF WTO TRADE DISPUTE
The purpose of this indicative flow chart is twofold. First, to highlight the
main steps in the evolution of a trade dispute based on standard proceedings under
the WTO Dispute Settlement Understanding and, secondly, to provide a synoptical
view of DSU time frames.
-----------------------
Request for Consultations
If responding party does not reply within 10 days, or if it does
not enter into consultations within 30 days, or at period
mutually agreed, the complaining party can request the
establishment of a panel (other WTO Members with substantial
trade interest have 10 days to join the consultations)
Consultations
60 days
Complaining State may request panel
The complaining State may request a panel at any
time after 60 days from the date the request is received by the
other State, provided consultations have not resolved
the issue
Dispute Settlement Body (DSB) establishes panel
(usually within 10-30 days)
Panel's terms of reference
Composition of the panel
(within 20 days of the establishment of the panel)
Panel Examination
As a general rule, should not exceed 6 months from composition
of the panel
(includes circulation of interim report within 13 to 22 weeks)
Final panel report circulated to Members and DSB
(report circulated to disputing parties a few weeks in advance)
DSB adopts panel report
(not before 20 days of
circulation)
Appeal to Appellate Body
(within 60 days of panel
report)
Appellate review
(60 or 90 days)
DSB adopts Appellate report
(within 30 days of report)
DSB monitors implementation of adopted
panel/Appellate Body recommendations
within 30 days of adoption the responding party must inform the
DSB of its intentions regarding the implementation of the
recommendations