Canada Calls for WTO Panel in Seal Dispute with EU

Canada has decided to proceed with its WTO case against the European Union’s ban on trade in seal products by filing for the creation of a panel to adjudicate the dispute.

The case dates back to November 2009, when Ottawa  requested consultations, the first step in the WTO dispute settlement process, with the EU over a regulation (EC No. 1007/2009) banning the importation of seal products from commercial sealing operations - like those in Canada - which it deems “inherently cruel” and “inhumane.” The ban took effect in August 2010 and subsequent consultations have failed to resolve the dispute.

Canadian Fisheries Minister Gail Shea said when announcing the panel request last Friday that the challenge is “a matter of principle.” Calling the seal hunt “humane” and an example of “responsible use,” she stressed the impact the ban would have on the livelihoods of the some 6000 Canadian families that depend on sealing.

Canada has long argued that scientific data in support of the EU’s perception of the seal hunt is lacking - a key requirement for such a ban under WTO rules.  The Canadian government claims the seal hunt is a legitimate economic pursuit.

The humaneness of the hunt is also contested in Canada, where some animal rights organisations side with the EU.  They criticise Ottawa’s decision to proceed with the case at the WTO saying it wastes millions of taxpayer dollars and tarnishes Canada’s image.

Also factoring into the debate surrounding the dispute is whether it could jeopardise ongoing negotiations on a free trade agreement between Canada and the EU.  Shea, however, dismissed suggestions that Canada was putting industries much larger than the tiny sealing sector at risk by pursuing the case.  “We don’t expect that this will have any effect whatsoever,” she said, telling reporters that “both sides have agreed that this issue will be resolved outside the free trade agreement process and will be resolved at the WTO.”

Ottawa’s request will be heard at the next meeting of the DSB to be held 24 February. The  EU can block the first request, but cannot do so a second time.

Canadian Inuit groups, who have pursued a parallel action against the ban through the EU’s own court system, praised Ottawa for contesting the seal ban at the WTO last Friday.  While the EU regulation contains certain exemptions for traditional Inuit hunts, the groups argue that the ban would still severely impact their livelihoods.  The EU court ruled against the Inuit last October, but the groups behind the case are planning an appeal.