Australia and WTO Dispute Settlement

On 5 October 1995, Canada sought consultations with Australia.� On 10 April 1997, a panel was established at Canada�s request, with the European Communities, India, Norway and the United States participating in the Panel proceedings as third parties.� The Panel Report, which was circulated on 12 June 1998, was appealed by Australia.� The Panel and Appellate Body Reports were adopted by the Dispute Settlement Body on 6 November 1998.

The Appellate Body upheld the ruling of the Panel that Australia's ban on salmon imports was inconsistent with the Agreement on Sanitary and Phytosanitary Measures (SPS). In response to this decision, in July 1999 AQIS issued a decision lifting the import ban on salmon but increasing the quarantine requirements for several species of fish, in line with risk assessments undertaken.

On 28 July 1999 Canada challenged these new measures in the WTO and requested that the original Panel consider its complaint that Australia had failed to comply with the rulings and recommendations of the WTO. Canada also requested WTO authorisation to retaliate against Australia for its non-compliance.� The Panel�s subsequent Report was circulated on 18 February 2000.

The Panel found that, while Australia had failed to take its implementing measures before expiry of the eight months awarded to it to do so, ten of the eleven new measures were consistent with the SPS Agreement.

However, the Panel also found that Australia, by requiring that only salmon product that is "consumer-ready", as specifically defined, can be imported into Australia and released from quarantine, was maintaining sanitary measures that were inconsistent with the SPS Agreement.

Finally, the Panel found that a measure enacted by the Government of Tasmania that effectively prohibits the importation of certain Canadian salmon product into most parts of Tasmania without being based on a risk assessment and without sufficient scientific evidence is contrary to the SPS Agreement.

On 17 May 2000 Australia and Canada announced that they had reached a mutually satisfactory solution to the WTO dispute over quarantine measures on imports of salmon to Australia. The agreement entered into force on 1 June 2000.

The agreement retains 10 of the 11 measures put in place by Australia following the initial WTO ruling that Australia's ban on salmon imports was inconsistent with WTO rules. The eleventh measure has been modified to bring it into WTO compliance whilst maintaining the integrity of Australia's quarantine measures on salmon.� Canada also accepted an undertaking from Australia that the Commonwealth will continue to seek observance of WTO disciplines by Tasmania.

The settlement with Canada removed the prospect of possible retaliation by Canada in other export sectors.

Australia Negotiates Settlement with Canada on Salmon - Trade Minister Vaile Press Release, 17 May 2000