In the latest twist in a decade-long trade dispute focused on Canada’s use of beef growth hormones and Europe’s refusal to import affected products, the European Union is trying to take Canada to an international trade disputes panel to argue for lifting of Canadian tariffs that block European beef and pork.
In late January, Canada used World Trade Organization rules to block the EU’s first request to establish a disputes panel.
Europe will apply again and Canada will not have veto rights. Eventually, unless a political agreement is reached, a panel will be set up and Canada will have to defend tariffs that were created to retaliate against European trade barriers.
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“Canada is disappointed that the EU has chosen to pursue this case, which we believe is not well founded,” Carrie Goodge of the federal international trade department said in response to a query about why Canada vetoed creation of a panel.
It is but one more step in a trade dispute that has meandered across the international landscape since 1989 when Europe banned use of growth promoting hormones and imports of meat from treated cattle.
Canada and the United States took the EU to a WTO trade panel in 1996, alleging the ban was not scientifically justified but rather a trade barrier dressed up as health protection.
They won in 1998 and Europe was ordered to change its rules.
It did not and in 1999, sanctions were levied Ñ in Canada’s case a prohibition on import of subsidized EU beef and a 100 percent duty on some pork products above an allowed import level of 2,970 tonnes.
Europe’s point now is that it has changed its rules and bases its continuing ban on new scientific studies that required just a few changes to the original rule. It wants a WTO panel to review the changes and to determine if continued North American retaliation is justified.
Canada, along with the U.S., insists the ban is illegal and not justified by science.
“The retaliatory duty will remain in effect until the EU restores access for Canadian beef or until the EU and Canada come to an agreement on satisfactory compensation,” Goodge said in a statement.
“The import ban has effectively shut Canada out of the EU market at a time when Canada’s capacity to export beef had been expanding.”
In its original ruling against Europe, the WTO said Canada could retaliate at an annual impact of $11.3 million.
