INTRODUCTION

On 5 October 1995, Canada requested consultations with Australia in accordance with Article 4.4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”), pursuant to Article XXIII:1 of the General Agreement on Tariffs and Trade 1994 (“GATT 1994”) and Article 11.1 of the Agreement on the Application of Sanitary and Phytosanitary Measures (“SPS Agreement”), regarding the Government of Australia's prohibition on the importation of untreated fresh, chilled or frozen salmon from Canada under Quarantine Proclamation No. 86A, dated 19 February 1975. In the request for consultations, the Government of Canada expressed the view that the application of the import prohibition in question was inconsistent with the obligations of the Government of Australia under GATT 1994 and the SPS Agreement. The provisions of these Agreements with which the import prohibition was inconsistent included, but were not limited to: (i) Articles XI and XIII of GATT 1994; and (ii) Articles 2 and 5 of the SPS Agreement. The import prohibition nullified or im paired benefits accruing to Canada under the Marrakesh Agreement Establishing the World Trade Organization (“WTO Agreement”).

November 1995, in Geneva, with a view to reaching a satisfactory resolution of the matter. These consultations failed to settle the dispute. Following the conclusion of the “Australian Salmon Import Risk Analysis”, on 20 December 1996 the Government of Australia announced that it would maintain the measure in force. Canada did not request further consultations.

On 7 March 1997, pursuant to Article XXIII of GATT 1994, Article 11 of the SPS Agreement, and Articles 4 and 6 of the DSU, Canada requested that the Dispute Settlement Body (“DSB”) establish a panel with standard terms of reference. Canada requested that the panel consider and find that the Australian measure was inconsistent with (i) the SPS Agreement, and in particular Articles 2, 3 and 5 thereof; (ii) GATT 1994, and in particular Articles XI and XIII thereof; and (iii) that the application of the Australian measures nullified or impaired benefits accruing to Canada pursuant to the WTO Agreement.

On 10 April 1997, the DSB established a panel pursuant to the request of Canada, in accordance with Article 6 of the DSU.