CANADA REQUESTS NAFTA CONSULTATIONS ON NORTH DAKOTA TRADE BARRIER

April 1, 1999 (2:45 p.m. EST) No. 72

CANADA REQUESTS NAFTA CONSULTATIONS

ON NORTH DAKOTA TRADE BARRIER

Canada has requested NAFTA consultations with the United States over a proposed law in North Dakota that would restrict the entry of Canadian products under the guise of technical requirements.

The proposed law would require all agricultural products and livestock entering the state from other countries to be certified regarding possible traces of various chemicals, a restriction that would not be imposed on products entering North Dakota from other U.S. states.

"It is clear that this new law violates NAFTA, particularly the national treatment provisions," said International Trade Minister Sergio Marchi. "The U.S. administration is responsible for ensuring that the actions of its states conform to NAFTA. We are asking them to help ensure that this legislation is not signed into law."

"The proposed new law would prohibit a wide range of Canadian agricultural products from entering North Dakota without the necessary scientific justification required by NAFTA and by domestic U.S. regulations," said Agriculture and Agri-Food Minister Lyle Vanclief. "There is no scientific basis for this, and we will vigorously defend the rights of Canadian exporters of agricultural goods."

"Canada and the U.S. are each others' best customers," said the Minister responsible for the Canadian Wheat Board Ralph Goodale. "We expect the U.S. to rigorously respect its international trade obligations, especially toward Canada."

- 30 -

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

John Embury, Press Secretary

Office of the Minister responsible for the Canadian Wheat Board

(613) 996-2007

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

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

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