The Canadian Food Inspection Agency has issued a ban on certain food products
imported from Belgium. The ban, which was recently expanded, includes
poultry meat and eggs, pork and pork products, beef and beef products,
dairy products and livestock feed. The ban was deemed necessary after
laboratory tests revealed that a number of poultry and hog operations
had fed their animals dioxin-contaminated feed. Examples of products affected
are cheese, milk chocolate, mayonnaise, cakes and pastries, breads, pasta,
ice cream etc.
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Baby Food Update
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Further to our article in the Spring 1998 issue,
the CITT issued a finding on April 29, 1998 that dumping of certain
prepared baby food from the United States had caused material injury
to H.H. Heinz Company of Canada Ltd. However, taking into account
the impact of its finding on low-income families, the potential effects
of a lack of competition in the Canadian market for baby food and
on the financial health of Heinz, the Tribunal recommended to the
Minister of Finance that the anti-dumping duties on prepared baby
foods be reduced by almost two thirds. |
Canada Customs and Revenue Agency
It's official! On April 29, 1999, the Canada Customs and Revenue Agency
Act (Bill C-43) received royal assent. The new agency, which is scheduled
to begin operations November 1, 1999, should allow for more flexibility
and responsiveness. |
 
Issue:
Whether thermal transfer film rolls should be classified under 9612.10.90
as other typewriter or similar ribbons, inked or otherwise prepared
for giving impressions or under 3920.62.00 as other plates, sheets,
film, foil and strip of polyethylene terephthalate, with the benefits
of code 7934 or in subheading No. 8517.90 as parts of facsimile machines.
Result: Dismissed. The tribunal found that the goods are ribbons
of heading No. 96.12 in that they are "narrow bands" that are "inked
or otherwise prepared for giving impressions," for use in a machine
which incorporates a device for printing by means of the ribbons.
Pastries
Issue: Whether food products known as "Millefoglie
D'Italia" and "Glassatine" are properly classified
under tariff time No. 1905.90.39 as pastries or should be classified
under tariff item No. 1905.30.99 as sweet biscuits.
Result: Dismissed. The tribunal determined that the goods in
question are properly classified under tariff item No. 1905.90.39
as pastries. The tribunal concluded that the sugar sprayed onto to
the dough prior to baking did not form a part of the base but is a
coating instead. In addition, the product is labelled and marketed
as puff pastry and the shelf life and water content do not preclude
them from being considered as pastries. |
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Trade Wars
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On
July 12th, the World Trade Organization (WTO) arbitration set $11.3
million as the value of trade damage suffered by Canada due to the
European Union (EU) failing to comply with the ruling allowing importation
of Canadian beef produced with growth-promoting hormones. The EU
had not lifted their ban based on the results of an interim EU scientific
report that found evidence that one of the commonly used hormones
in the North American cattle industry could cause cancer. While
waiting for the WTO's ruling, the EU has commissioned a new scientific
study on hormones that is due out at the end of the year. However,
the WTO Arbitrator's
decision is final and cannot now be appealed.
Canada had requested authority from the WTO Dispute Settlement Body
(DSB) to impose sanctions consisting of 100 per cent tariffs on
a range of EU products imported into Canada. These products included
meats, fresh, chilled and frozen; cucumbers; peppers, potato starch;
wheat gluten; sugar; chocolates; gingerbread; sweet biscuits, waffles
and wafers; prepared tomatoes (other than by vinegar or acetic acid);
jams, fruit jellies etc.; peaches,; soups, broths; mineral and aerated
waters; gin and vodka.
As a result of this ruling, Canada will have to resubmit its request
to retaliate and will be filing its request at the July 26th meeting.
The products involved will be amended to reflect the comments received
from and the value assigned by the DSB.
Not everyone is in favour of sanctions, the Canadian Importers Association
advocates a compensation program that enhances trade rather than
discouraging it. This could be achieved through the lowering of
EU tariffs and developing greater market access of hormone-free
red meat. The CIA contends that Canadian imports from the EU represent
a small market and that the potential loss of sales could be made
up by the EU exporters by encouraging sales in other markets thus
eliminating any negative impact to European exporters.
For complete details on the products initially proposed for retaliation,
please contact one of our technical departments or refer to Ms.
Marie-France Huot, International Trade Policy Division, Department
of Finance, Ottawa, Ontario K1A 0G5 (615) 996-0628. The final list
should be announced by the Government by the end of July.
Unfortunately, this is not the only trade dispute the Canadian Beef
Cattle industry is up against. Canada has also requested World Trade
organization consultations with the United States. The United States
is conducting countervailing investigations of imports of Canadian
cattle. Canada's position is that a number of complaints by US cattle
producers have been investigated previously with the same result
i.e. that the programs are consistent with international trade rules.
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