The CCA co-chairs called the meeting to order and adopted the agenda (Annex 1). A list of attendees is attached (Annex 2).

The U.S. delegation reported that the May 24, 2000 consultations included discussions of policy developments, and the exchange of updated trade projections. The latter are posted on the Agriculture and Agri-Food Canada and USDA Foreign Agricultural Service websites. It was noted that the first projections for the 2000-2001 Canadian and U.S. crop years would be developed at the end of August and would be discussed at the next quarterly consultations scheduled for August 29.

The U.S. delegation noted that it was concerned with the complaint filed by the Manitoba Corn Growers Association regarding imports of U.S. corn into Western Canada. The U.S. delegation noted that it would take up the possibility of consulting with the Canadian Customs and Revenue Agency (CCRA) on this matter.

The Canadian delegation noted that it had received extensive comments on its proposed animal health regionalisation regulation, that these comments are being considered and that CFIA is on track to complete the regulations by the first quarter of 2001, as set out in the December 4, 1998 Canada-United States Record of Understanding on Agricultural Trade (ROU).

The Canadian delegation noted that some shipments of U.S. live swine had entered Canada for slaughter under new import regulations. Canada reported that it had requested Australia to modify its animal health requirements so as to remove the restrictions on Canadian establishments handling U.S. swine. It was noted that, as a result, Australia removed certain restrictions on Canadian establishments.

The Canadian delegation reiterated its concerns about North Dakota House Bill 1276 and the proposed North Dakota implementation rules. Canadian officials noted that they would observe the oral hearing scheduled for Bismarck on August 17 and would submit written comments prior to the September 19 deadline. The Canadian delegation stated that it expects that North Dakota would enact rules that would be consistent with U.S. NAFTA and WTO obligations. If such is not the case Canada would pursue its trade agreement rights.

The Canadian delegation referred to the country of origin labeling legislation adopted by the state of Wyoming, and distributed copies of the proposed implementation rules. The Canadian delegation expressed deep concern with this development which it believes, moves in the opposite direction compared with other ROU initiatives in this sector. The Canadian delegation noted it would review the proposed rules with a view to its trade agreement rights.

The Canadian delegation asked when the new rules on equine semen would be enacted. The U.S. delegation indicated that it expected the final rules would be issued by early fall.

The Canadian and U.S. delegations were pleased to note the progress of the New World Wine Producers (NWWP) group and the extent of cooperation between the two countries on international wine recognition issues. On bilateral issues, the U.S. delegation asked about certain Canadian package size requirements. The Canadian delegation undertook to examine the issue.

Both delegations noted the positive meeting between Health and Human Services Secretary Shalala and Agriculture and Agri-Food Minister Vanclief in Washington in mid-July. The delegations were encouraged by the work previously undertaken in the Canadian Food Inspection Agency and the U.S. Food and Drug Administration to resolve unwanted trade-inhibiting effects of certain food safety inspections. The delegations expressed their confidence that significant progress would be made on this issue by November 1, 2000 based on the scientific work currently under way in both agencies.

The U.S. delegation had no new developments to report on the issue of import licencing for Canadian sugar-containing products.

The two delegations noted that the second meeting of the North American Market for Pesticides had been held in Ottawa on April 14, and that a third meeting is being planned for the spring of 2001 in the United States. It was noted that good progress is being made on the harmonization of pesticide regulatory approaches (e.g., joint registration processes) but that additional work remains to be done.

The United States reported that the side-by-side veterinary drug comparison has been completed by the U.S. Food and Drug Administration and Health Canada, and noted that there appears to be a high degree of harmonization. Both delegations agreed that the side-by-side comparison will be made available to the public once Health Canada completes its regulatory process, which will formalize existing administrative policies.

The U.S. noted its concern with proposed provincial dairy export regimes which the U.S. believes mirror those struck down by the World Trade Organization (WTO). In response, the Canadian delegation reported that they believe that Canada is bringing its dairy export practices fully in line with its WTO obligations, in the time frames that had previously been agreed to by the U.S. and New Zealand.

The Canadian delegation noted that, during the recent bilateral, Minister Vanclief and Secretary Glickman agreed that a technical meeting between Canadian and U.S. officials be held to review and compare domestic support calculations. It was also noted that the meeting could develop a response to the PSAG request with respect to information about support to the cattle and sheep sectors. It was suggested that OECD Producer Subsidy Equivalent (PSE) data would form the basis for the response to the PSAG request. The two delegations agreed that such a meeting should be organized in the coming weeks.

The U.S. delegation noted the importance of harmonizing activities related to nutritional labeling and both sides agreed to make the activities of the NAFTA Technical Working Group on Food Packaging, Labelling and Food Standards a priority.

The Canadian delegation expressed its concern about what it considered to be inadequate U.S. food aid notifications and consultations in the CSSD, most recently with respect to transactions in Morocco. The Canadian delegation noted that Canadian producers are increasing pressures on the government on this matter to ensure that U.S. food aid not be directed to commercial markets where it has the potential to distort trade. The U.S. noted that the food aid program had been properly notified to all partners, however agreed to provide additional information to Canada on the situation in Morocco.

The Canadian delegation requested clarification and information from the U.S. with respect to the U.S. Market Access Program support for the promotion of branded products in Canada.

The U.S. delegation asked about the possibility of some kind of transitional arrangement for the recognition of U.S. seed certification laboratories, as had been suggested by Idaho at the PSAG meeting. The Canadian delegation indicated it would consider the request.

The two delegations discussed current and prospective developments related to international biotechnology issues.

The CCA decided to create a working group on communications: USDA/FAS/International Trade Policy will lead on the U.S. side and DFAIT/Market Access Division will lead on the Canadian side.

The CCA noted it will prepare an end-of-year progress report of activities under the ROU.

The CCA noted that NASDA had expressed an interest in a CCA/PSAG meeting at the time of the next semi-annual meeting of the NASDA scheduled to be held in Washington in March 2001.

The CCA agreed that the next meeting would occur in the U.S., the date to be established by the four co-chairs. The CCA also noted there was a suggestion that the CCA meeting be held in the northwestern U.S., and that a meeting outside of capitals seemed desirable.