WTO to look again at Canadian export policy

INTERNATIONAL – The World Trade Organisation (WTO) has agreed to look again at the USA and New Zealand’s long-running dispute with Canada over the country’s dairy export policy.

The WTO’s Dispute Settlement Body (DSB) has agreed to refer the case to the original panel for a second time, after the DSB apparently gave the go ahead for Canada’s policy in early December. New Zealand and the US claim that the original decision was unclear and incomplete, and so have asked the body to reconsider the case.

Canada is unhappy about the second DSB enquiry, insisting that the fist DSB findings should stand, and not be a case of “better luck next time”.

The USA has requested that the WTO establish a second panel to examine Canada’s implementation of dairy export measures.

New Zealand continues to claim that Canada’s new measures for the export of dairy products involve the provision of export subsidies.

Canada introduced its dairy export policy in 1995, and New Zealand and the USA claim that it subsidises Canadian dairy exports, which is inconsistent with WTO rules.

In 1999, the Canadian government changed the way it marketed milk destined for exported dairy products. The WTO then ruled that Canada’s export milk approach still constituted an export subsidy. It is the result of Canada’s appeal to this decision that the USA and New Zealand are now contesting.