Media release 

Australian Minister for Trade, Mark Vaile

Wednesday 17 May, 2000
MVT47/2000

Australia Negotiates Settlement with Canada on Salmon

Minister for Trade, Mark Vaile, today announced that Australia and Canada had reached a mutually satisfactory settlement of Canada's WTO complaint on salmon. The agreement is scheduled to enter into force on 1 June.

"The settlement with Canada puts an end to this long-running dispute and has been achieved without any trade off of our conservative approach to quarantine", Mr Vaile said. "There are no changes to ten of the eleven measures above the international standard adopted by Australia last year.

In the case of the consumer ready provisions where the WTO found inconsistencies, we have found an alternative method to deliver the same high level of quarantine protection. For instance the requirement for product weighing more than 450 grams to be in skinless form has been replaced by other stringent controls on processing including detailed packaging and certification requirements and legally enforceable compliance conditions for processors", Mr Vaile said.

"Canada has also accepted an undertaking from Australia that the Commonwealth will continue to seek observance on the part of Tasmania. Discussions will continue with the Tasmanian Government and I call on them to act responsibly in terms of their commitment under the Commonwealth/State MOU on quarantine to take corrective action when quarantine measures have been found to be WTO-inconsistent."

"If the Tasmanian Government needs any reminding that the WTO system benefits Australia, it should note that this week Tasmania will send its second consignment of red fuji apples to Japan, a market opened up by the Commonwealth through the WTO system".

Mr Vaile said that the settlement with Canada would remove the prospect of possible retaliation by Canada in other export sectors.

"I am delighted that the threat of retaliatory action has been removed. It was vital in reaching this settlement that innocent Australian exporters did not get caught in the crossfire. Canada is an important export market for Australia valued at $1.2 billion in 1999 and it would have done no-one any good to get caught up in an unnecessary trade war.

I am confident that the settlement provides an excellent outcome for all stakeholders in Australia thereby putting an end to this long-running dispute."

Contact: Bruce Mills 0418 273 475