Agriculture organisations request dispute settlement with USA

20/04/2005

The Canadian Cattlemen's Association (CCA) and 23 other organisations have requested the Government of Canada to initiate dispute settlement mechanisms with the United States under either the World Trade Organisation (WTO) or North American Free Trade Agreement (NAFTA). The groups believe that dispute settlement is an essential element that the government must use to achieve the re-opening of the US market to live cattle, other affected ruminants, all beef and other affected meat products. A letter signed by the 24 organisations has been delivered to the office of the Minister for International Trade.

 

"It's unfortunate that it has come to this," stated Stan Eby, president of the CCA. "We hope that we will not have to wait for the whole panel process to complete itself, but we firmly believe that it is necessary to commence the process."

 

The US Administration had intended to implement a rule on March 7, 2005 that would have re-opened the US market to some live animals and expand the list of eligible beef and meat products, but that rule left many restrictions in place pending further rulemaking. However, even that modest progress was derailed by the Judiciary Branch of the US government when a single judge in Montana enjoined the rule in an opinion that adopts wholesale the allegations of litigants motivated by their own economic interests.

 

According to the CCA, the US District Court's decision to keep the border closed is forcing fundamental structural changes in the North American beef industry to ensure the survival and long-term strength of the Canadian industry. These changes include significant rapid expansion of slaughter capacity in Canada coupled with cutbacks in the US processing sector, and measures to market Canadian beef aggressively in the global marketplace.