By Boyd Champness

CANADA has dropped it trade retaliation threat against Australian farm exports after both countries came to an agreement on salmon imports last week.

According to a report in The Weekly Times, Australia has agreed to scrap its previous “consumer ready” provisions on salmon imports, which were deemed illegal under world trade rules.

The provisions had included strict processing, packaging and certification requirements.

In return, Canada has agreed to tolerate Tasmanias ongoing ban on salmon imports – despite it being illegal under world trade rules – as long as the Howard Government maintains pressure on Tasmania to drop the ban.

“The World Trade Organisation will be notified of the bilateral settlement,” Canadas international trade minister Pierre Pettigrew said.

“Canada will also withdraw its request to retaliate against Australia.”

Canada was considering imposing a 100% surtax on some Australian imports, including beef, lamb, sugar and horticultural produce unless Australia abided by a WTO ruling to modify its “consumer-ready” provision, the newspaper said.