14 October 1999
Canada loses WTO dairy appeal

CANADA has lost an appeal against a World Trade Organisation (WTO) ruling that a dairy export subsidy system broke free trading rules.

The USA and New Zealand brought the case which had argued that Ottawa was distorting world markets for dairy products with its subsidy programme.

The WTO has sent a “mixed message” on another issue regarding US access to the Canadian market.

It is allowing cross-border consumer milk purchases to count as fulfilment of Canadas import quota.

Meanwhile, Australia and New Zealand are to formally ask the WTO to set up a panel to adjudicate over US-imposed quotas on lamb imports.

The two countries have had their exports to the USA damaged by the quotas.

They expect to have their complaint heard later this month.