NEWS RELEASESMay 28, 1998 No. 135 THE CANADIAN GOVERNMENT TO REFER THE ISSUE OF CHRYSOTILE ASBESTOS TO THE WTO International Trade Minister Sergio Marchi, Natural Resources Minister Ralph Goodale, and Secretary of State responsible for Economic Development Canada Martin Cauchon announced today the Canadian government's decision to initiate consultations at the World Trade Organization (WTO) for the settlement of the dispute with France on the issue of chrysotile asbestos. This decision was taken after a series of discussions with the Canadian government's partners in this issue and was made public this morning at the end of a meeting with the Ministers and a group of stakeholders from Thetford Mines, Asbestos and Black Lake. "I have instructed our mission in Geneva to formally request consultations, the first step in the WTO dispute settlement process," said Mr. Marchi. "I am hopeful that this process will enable Canada and France to pursue a dialogue and to find a mutually satisfactory resolution to this issue." "The Government's objective is to maintain market access for chrysotile asbestos products, which are safe when used properly, according to the safe-use principle of the Government's Minerals and Metals Policy," said Mr. Goodale. "Natural resources are playing a major role in Canadian economic growth and asbestos has always generated considerable economic activity in the producing regions," said Mr. Cauchon. "Canada wants to counter the impact of the French measures on the development of this industry and on the survival of the related jobs." The Ministers have as well expressed their concern over the negative impact on exports of chrysotile fibre resulting from measures recently adopted by Belgium and the European Commission. Ministers Marchi, Goodale and Cauchon added that Canada is also evaluating the possibility of recourse to the WTO regarding these two cases. Since January 1, 1997, France has prohibited the manufacture, import and sale of asbestos and products containing asbestos, with rare exception. - 30 - Backgrounders are attached. For further information, media representatives may contact: Leslie Swartman Office of the Minister for International Trade (613) 992-7332 John Embury Office of the Minister of Natural Resources (613) 996-2007 Pascal Harvey Office of the Secretary of State responsible for Economic Development Canada (613) 995-7691 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 Internet site: http://www.dfait-maeci.gc.ca 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 15-20, 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 towards 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 14-16, 1997, NRCan sponsored a scientific workshop in Montreal on the health risks associated with the use of chrysotile and present-day chrysotile-based products. September 16-19, 1997, NRCan organized and co-sponsored an International Conference in Montreal 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 quarter million dollar 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 U.K. and Canada. On November 26, 1997, the Deputy Minister for International Trade met with stakeholders in Montreal 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 defense 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-Memoire on the responsible use of asbestos. This Aide-Memoire was submitted by the participating Ambassadors to the European Union. In March, April and May 1998, the 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 an European ban of asbestos. In April 1998, French Professor Claude Got visited Canada followed by French 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.
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 |