The co-chairs acknowledged progress made to-date under the CCA regarding the resolution of issues and the benefits of an open dialog that serves as an effective early-warning system for issues arising in bilateral trade.

The United States delegation proposed some changes to the draft of the revised CCA Action Plan (Annex 3). The Canadian delegation agreed to these changes. Once the revised Action Plan has been endorsed by Minister Vanclief and Secretary Veneman, and Canada has it translated, both countries will post the revised CCA Action Plan on their respective websites.

Wheat-

Potato Trade: Ministerial Exemptions/Bulk Easements-

The Canadian delegation presented a letter in response to a U.S. request for increased transparency of the application process for ministerial waivers. Canada noted that the Canadian Food Inspection Agency (CFIA) was updating with intent to clarify the ministerial exemption application guidelines which are to be issued in the near future.

Dispute Settlement Mechanisms-

The Canadian delegation reported on the status of the paper on various settlement mechanisms available for sanitary and phytosanitary (SPS) disputes. This paper had been requested by the Provincial - State Advisory Group (PSAG) at their last meeting. The Canadian delegation presented an outline for the paper and agreed to forward the first draft to the United States in the near future. The CCA agreed that the paper is to be a factual accounting of the various mechanisms that are available to resolve SPS disputes, including both technical discussions and formal processes, to increase understanding.

Tomato Trade-

U.S. and Canadian officials reported on the Canada - U.S. tomato industry meeting that took place on March 19, 2002 at which discussion covered SPS and data transparency issues. The Canadian and U.S. tomato industries agreed to future meetings to have a regular cross-border dialogue and develop joint views on issues of shared interest. The industry committee is considering aligning its future meetings with CCA meetings, and is expected to write to the CCA requesting that the Tomato Working Group be formally established. It was agreed that the CCA would respond favorably to this.

Seed Certification Laboratory Accreditation-

Use of Seed Tag for Wheat/Barley Seed Exports to Canada-

The U.S. delegation asked that Canada recognize the use of seed tags in place of phytosanitary certificates for seed exported to Canada. The Canadian delegation noted that Canada is still waiting for a reply to its letter sent last July asking about 4 cases of Karnal Bunt reported in Texas and that progress on this matter is contingent on resolving Karnal Bunt-related issues. Both sides agreed that the topic will be further discussed during the upcoming Animal and Plant Health Inspection Service (APHIS) - CFIA bilateral meeting to be held later this year (2002), where a time frame to move forward on this issue would be identified.

U.S .- Canada Cooperation on Phytosanitary Measures-

The APHIS and the CFIA informed the CCA that significant progress was made on phytosanitary measures at a recent meeting between CFIA and APHIS.

Industrial Hemp-

The Canadian delegation asked for an update on the status of proposed U.S. regulations relating to industrial hemp. The U.S. delegation reported that the U.S. Customs Service's new interpretation of rules with regard to industrial hemp is subject to review by the U.S. Court of Appeals and that oral arguments in a case before the 9th circuit court of appeals are scheduled to take place on April 8, 2002. In the interim, trade for products with naturally occurring tetrahydrocannabinols (THC) is continuing.

Movement of Horses into the U.S.-

The Canadian delegation asked for an update and indication of when the U.S. would amend its regulations on the movement of horses from Canada into the United States pursuant to the commitment in the 1998 Record of Understanding. The U.S. delegation indicated that the matter is complicated due to the impact of third country requirements and disease status, and agreed to continue examining specific disease control issues. Canada undertook to provide any outstanding information on its regime as quickly as possible.

Restricted Feeder Cattle Program-

Reclassification of Bluetongue-

Vancise Compensation Claim-

Veterinary Drugs Comparison-

The U.S. delegation provided a revised draft of the veterinary drug comparison list and reiterated its long-standing interest in publishing a comprehensive side-by-side comparison of veterinary drug tolerances of the U.S. and Canada. The Canadian delegation indicated they would review the U.S. list as soon as possible. The CCA noted the importance of revitalizing the Technical Working Group (TWG) on Veterinary Drugs and Feeds to expedite the work on veterinary drug comparison and to work toward future harmonization of tolerances where appropriate.

Meat Grading Provision in the Proposed U.S. Farm Bill-

The Canadian delegation stated that the new meat grading provisions in the proposed U.S. Farm Bill would have a negative impact on the highly integrated North American meat markets and would, in its view, violate the national treatment provisions of the NAFTA and WTO. The U.S. delegation noted the Canadian delegation's comments, stating that the U.S. Farm Bill was still in conference.

Country of Origin Labeling in the Proposed U.S. Farm Bill-

The Canadian delegation expressed its concerns about meat and fish country of origin labelling proposals in the proposed U.S. Farm Bill and the potential negative impact on the integration of North American meat markets. The U.S. delegation noted the Canadian delegation's comments stating that the U.S. Farm Bill was still in conference. The U.S. delegation also noted that the Administration has opposed mandatory country of origin labelling.

Food Safety Inspection Service (FSIS)'s Advance Notice of Proposed Rulemaking (ANPR) on Country-of-Origin-

The U.S. delegation noted that the comment period closed in October 2001 and that FSIS is in the process of evaluating the comments. If FSIS decides that a change is needed, then it would issue a proposed rule. Canada recalled that it had submitted written comments and said that it hoped that they would be taken into account.

Nutrition Labelling-

The U.S. delegation expressed concern that Canada's proposed mandatory nutrition labelling regulation, due to be published in final in the next year, would create a dual and costly labelling system. The CCA recommended that the NAFTA Technical Working Group (TWG) on Food Packaging, Labelling and Food Standards, which is meeting April 2 - 5, 2002, be encouraged to work on an interim solution, as well as long-term harmonization.

Metric Increments of Institutional Food Package Sizes-

The U.S. delegation requested that Canada deregulate package sizes. The Canadian delegation noted that while products are treated differently in Canada, the rules are not inconsistent and that comments from the United States are welcome as the regulations will be developed over the coming months.

Breaded Snack Food-

The U.S. delegation presented a letter from U.S. Trade Representative Zoellick to Canada's Trade Minister Pettigrew on breaded snack foods requesting a resumption in trade by returning tariffs to pre-December 1999 levels. The Canadian delegation noted that Canada's position had not changed since the previous CCA meeting, and agreed to deliver Ambassador Zoellick's letter to Minister Pettigrew.

Update on Pesticide Harmonization-

The U.S. Environmental Protection Agency (EPA) provided the CCA with an update on the work of the NAFTA Technical Working Group (TWG) on Pesticides. EPA presented a report outlining the proposed NAFTA workplan for the next five years. The U.S. delegation asked if there were any developments in Canada related to Lindane that would have implications for the U.S. - Canada Record of Understanding. Uses of Lindane on canola were gone as of July 1, 2001. In addition, PMRA has completed the special review of lindane and found the risks to be unacceptable. As a result, all registered uses of lindane will be phased out by 2004. There has been a challenge under NAFTA Chapter 11 with respect to the decision particularly related to the removal of canola. The next meeting of the NAFTA TWG on Pesticide Harmonization is scheduled for May 2002 in Mexico.

Biotech-

The U.S. and Canadian delegations exchanged information on current and prospective developments that have the potential to affect exports to third country markets. The Canadian delegation indicated its support for the U.S. position on EU traceability and labelling regulations. China's new biotech regulation was also discussed. The CCA agreed on the importance of continuing to share information and coordinate on biotech issues that affect exports to third country markets.

Sugar Syrups-Retroactive Duty Assessment-

Breaux-Thomas Amendment-

The Canadian delegation stated that the proposed amendment would be inconsistent with U.S. trade obligations and that the Canadian government (GOC) would be under pressure to initiate trade agreement consultations on this issue. The U.S. delegation noted the Canadian delegation's comments.

Beet Sugar Waivers-

The Canadian delegation raised concerns regarding USDA's recently issued waiver of the refined sugar re-export program which changed the definition of refined sugar and allowed beet sugar to qualify for the U.S. program. The U.S. delegation responded that the change was requested by the U.S. industry and was consistent with the definition of raw sugar under subheading Note 1 of Chapter 17 of the Harmonized Tariff Schedule.

Bioterrorism Bill in Conference (S1765/HR3448) and Canada-U.S. Cooperation to Prevent Bioterrorism-

The Canadian delegation requested for CY 2000 that the U.S. reallocate to Canada the unfilled MFN TRQs from other countries in order to rectify a situation where a Canadian quota holder has been charged over-quota duties. Canada also suggested that a long-term solution could involve the U.S. recognition of Canadian export certificates. The U.S. delegation indicated that this did not appear to be a one-time issue since Canada has made a similar request in the past arising from a similar incident.

Canada's Agricultural Policy Framework-

The Canadian delegation updated the CCA on the development of the new Agricultural Policy Framework and outlined the five principal topics: food safety and quality, environment, science, sector renewal and risk management. The U.S. delegation noted that these areas are also of interest to the U.S. and are addressed in the U.S. Farm Bill.

Proposed U.S. Farm Bill-

The Canadian delegation expressed concern regarding the level of domestic support being discussed in the proposed U.S. Farm Bill. The Canadian delegation also noted that the proposed U.S. Farm Bill might cause the U.S. to breach its WTO commitments, and jeopardize the U.S. leadership role in the WTO. The Canadian delegation also expressed concern that the proposed provisions for marketing loans for pulse crops and country of origin labeling for meat and livestock could have immediate and harsh impacts for Canadian producers. The concerns by the Canadian delegation were noted. The U.S. delegation mentioned that the Administration is actively engaged with Congress on these issues and does not intend to breach its WTO commitments.

PSAG MEETING/TRINATIONAL AGRICULTURAL ACCORD MAY 15, 2002

It was tentatively agreed that the next U.S. - Canada CCA meeting would be in early October 2002.

ANNEX 1

AGENDA

U.S. - Canada Consultative Committee on Agriculture

CCA Action Plan:

Review and approval of updated Action Plan

Plant Issues:

Wheat

Potato Trade: Minsterial Exemptions/Bulk Easements

Dispute Settlement Mechanisms

Tomato Trade

Seed Certification Laboratory Accreditation

Use of Seed Tag for Wheat/Barley Seed Exports to Canada

U.S.-Canada Cooperation on Phytosanitary Measures

Industrial Hemp

Movement of Horses into the U.S.

Restricted Feeder Cattle Program

Reclassification of Bluetongue

Vancise Tort Case

Veterinary Drugs Comparison

Meat Grading Provision in the Proposed U.S. Farm Bill

Country of Origin Labeling in the Proposed U.S. Farm Bill

Food Safety and Inspection Service (FSIS) Advance Notice of Public Rulemaking (ANPR) on Country-of-Origin

Nutritional Labeling

Metric Increments of Institutional Food Package Sizes

Breaded Snack Food/Cheese Sticks

Update on Pesticide Harmonization

Biotech

Sugar Syrups-Retroactive Duty Assessment

Breaux-Thomas Amendment

Beet Sugar Waivers

Bioterrorism Bill in Conference (S1765/HR 3448) and Canada - U.S. Cooperation to Prevent Bioterrorism

Peanut Butter Tariff-Rate Quota (TRQ)

Canada's Agricultural Policy Framework

Proposed U.S. Farm Bill

James M. Murphy, Assistant U.S. Trade Representative for Agricultural Affairs

Sharon Bomer Lauritsen, Director for Agricultural Affairs

Amy Abbel, Intern

Christopher Armao, Intern

Patricia R. Sheikh, Deputy Administrator, International Trade Policy (ITP), Foreign Agricultural Services (FAS)

Curt Mann, Special Assistant to the Secretary, U.S. Department of Agriculture

Gary Groves, Assistant Deputy Administrator, Commodity and Marketing Programs (C&MP), FAS

Frank Tarrant, Director, Horticultural & Tropical Products Division, C&MP, FAS

Richard Blabey, Director, Import Policies & Program Division, ITP, FAS

Cathy McKinnell, Deputy Director, Multi-Lateral Trade Negotiations Division, ITP, FAS

Debbie Seidband, Economist, Grain & Feed Division, C&MP, FAS

Audrey Talley, Senior Marketing Specialist, Food Safety and Technical Services, ITP, FAS

Renee Schwartz, Senior Economist, Asia & the Americas Division, ITP, FAS

Fred Thomas, Director, Plant Protection and Quarantine, Animal and Plant Health Inspection Service (APHIS)

Dr. Bob Bokma, Regional Coordinator for the Americas, APHIS

Eric Nichols, Trade Support Team, APHIS

Bill Sessions, Associate Deputy Administrator, Livestock and Seed Programs, Agricultural Marketing Service (AMS)

Norval Francis, Minister Counselor, FAS, Ottawa, Canada

Thomas Billak, Preclearance Coordinator & Acting Attaché, APHIS

Merton Smith, Ph.D., Special Assistant for International Activities, Center for Veterinary Medicine, Food & Drug Administration (FDA)

Tracy Perry, U.S. Secretariat for NAFTA TWG on Pesticides, Environmental Protection Agency (EPA)

Rory McAlpine, Director General, International Trade Policy Directorate

Phillip Douglas, Deputy Director, Trade Policy, Canada -U.S. Trade Policy

Ron Krystynak, Deputy Director, Trade Issues, Canada-U.S. Trade Issues

Fred Gorrel, Senior Officer, International Affairs

Andrea Lyon, Director, Tariffs and Market Access Division

Catherine Tokarz, Senior Trade Policy Officer, Tariffs and Market Access Division

Claudio Valle, Director, Technical Barriers and Regulations Division

W.R. (Bill) Crosbie, Minister Counsellor

John Masswohl, Agriculture Counsellor

Alan Minz, Trade Policy Counsellor

 

Last modified: Friday, November 07, 2003