OTTAWA – The federal government late last week announced it will try to use world trade rules to win access to European markets for Canadian beef.
It is taking the European Union to a World Trade Organization trade disputes panel to challenge the seven-year-old ban on imports of beef from countries which allow use of cattle growth hormones.
“If we win this, I believe there is a tremendous opportunity for North American beef in Europe,” said Canadian Cattlemen’s Association president Dave Andrews from his Brooks, Alta. ranch.
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“I do not think the European hormone ban can be justified on scientific grounds, which it would have to be under trade rules.”
Last week, international trade minister Art Eggleton said Canada will ask for a trade disputes panel at a Sept. 27 WTO meeting. He said the action is being taken because negotiations with the Europeans have failed.
One chance only
An international trade department official said the European Union has one chance to block the request for a panel.
“I expect they will do that,” he said. “We will then ask again Oct. #18 and they will not be able to block it.”
Eggleton said a final ruling could come by next June.
Since 1989, North American beef has been banned from European Union countries because the EU decided it would not accept product from countries which allow use of cattle growth hormones.
The United States has already challenged the ban before the WTO, with the result pending.
Dennis Laycraft, general manager of the CCA, said from Calgary that a victory at a WTO trade panel would not automatically open the European market.
He noted the EU also has a rule that only meat from packing plants which meet a very high standard can send product to Europe.
“It is something of a Fortress Europe,” he said. “There are layers of protection. But if we win on the hormone issue, I believe we can begin to tackle the other barriers as well.”
Andrews said there is a significant market in Europe for high quality Canadian beef, if Canadian exporters can have a crack at it.
Canada’s decision to challenge the EU ban is partly defensive.
If the Americans win their challenge and the Europeans refuse to lift the ban, the U.S. could retaliate.
By launching its own appeal, Canada would gain the right to take its own action against Europe if the EU loses the case.
