EU Launches WTO Action Against US And Canada

by Ulrika Lomas, for LawAndTax-News.com, Brussels

10 November 2004

The European Commission on Monday asked the World Trade Organisation to rule that the continued imposition of sanctions on the EU by the US and Canadian governments in relation to a dispute over the importation of beef affected by growth hormones is illegal.

Although the WTO ruled in 1998 that a ban on the importation of such beef to EU member states was invalid because it was not supported by proper scientific research, the EC rectified this by commissioning an independent research project into the matter. The results of this evaluation substantiated the case for the prohibition on the use of the hormones in question for growth promotion.

EU Trade Commissioner Pascal Lamy stated this week that:

“There is no reason why European companies should continue to be targeted by sanctions when they export to Canada and the United States. The EU ban on certain growth promoting hormones is now in full respect of our international obligations. We have put in place revised legislation based on a thorough and independent scientific risk assessment."

He added: “Our move to get the sanctions lifted shows our respect for the WTO as the proper forum to resolve trade disputes instead of the unilateral maintenance of sanctions. If Canada and the United States disagree with the EU measures, they should suspend their sanctions and refer their apparent disagreement to the WTO as the EU has done recently in the FSC case.”

The EU has requested formal consultations with Canada and the United States within the dispute settlement system of the WTO. If no progress is made within sixty days, the case will then go before a WTO panel.

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