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<title>MINISTERS WELCOME WTO ARBITRATOR'S REPORT ON EU BEEF IMPORT BAN</title>
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<p><font face="Univers" size="+2"></font><font face="Univers" size="+2">May 29, 1998 No. 139</font></p>
<p align="CENTER"><font face="Univers" size="+2">MINISTERS WELCOME WTO ARBITRATOR'S REPORT </font></p>
<p align="CENTER"><font face="Univers" size="+2">ON EU BEEF IMPORT BAN</font></p>
<p><font face="Courier">International Trade Minister Sergio Marchi and Agriculture and Agri-Food Minister
Lyle Vanclief welcomed today's decision by a World Trade Organization (WTO)
arbitrator giving the European Union (EU) until May 1999 to have its measures on
Canadian beef imports conform to WTO rules. </font></p>
<p><font face="Courier">In February 1998, the WTO Dispute Settlement Body adopted the report of the
Appellate Body confirming that the EU's ban on imports of Canadian beef produced
with growth-promoting hormones violated its WTO obligations. </font></p>
<p><font face="Courier">The EU requested four years to implement the report, a proposal rejected by
Canada. The matter was therefore referred to arbitration. The arbitrator
concluded that there were no special circumstances to warrant exceeding the WTO
guidelines of 15 months past the date of adoption of the report. </font></p>
<p><font face="Courier">"We are pleased with the arbitrator's decision. Prompt compliance with the WTO
ruling is essential to ensure the effectiveness of the dispute settlement
process," said Mr. Marchi. "The arbitrator's ruling is consistent with past WTO
practice."</font></p>
<p><font face="Courier">"The Government of Canada has worked closely with cattle producers to remove this
non-tariff barrier and restore access to European markets," said Mr. Vanclief. "I
will raise the issue of reopening the EU market for Canadian beef with EU
Agriculture Commissioner Fischler during his visit to Canada next week."</font></p>
<p><font face="Courier">In 1989, the EU imposed a ban on imports of Canadian beef produced with growth-promoting hormones. Canada requested a WTO dispute settlement panel in 1996 after
direct consultations with the EU failed to resolve the dispute.</font></p>
<p><font face="Courier">- 30 -</font></p>
<p><font face="Courier">For further information, media representatives may contact:</font></p>
<p><font face="Courier">Leslie Swartman</font></p>
<p><font face="Courier">Office of the Minister for International Trade</font></p>
<p><font face="Courier">(613) 992-7332</font></p>
<p><font face="Courier">Sylvie Millette LeDuc</font></p>
<p><font face="Courier">Office of the Minister of Agriculture and Agri-Food</font></p>
<p><font face="Courier">(613) 759-1761</font></p>
<p><font face="Courier">Media Relations Office</font></p>
<p><font face="Courier">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Courier">(613) 995-1874</font></p>
<p><font face="Courier">This document is also available on the Department of Foreign Affairs and
International Trade Internet site: </font></p>
<p><font face="Courier">http://www.dfait-maeci.gc.ca</font></p>
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