ICTSD BRIDGES      In  Brief
   Volume 5    Number 12  3 April 2001   

US LUMBER GROUP CHALLENGES CANADIAN SOFTWOOD PRICING REGIME. In the latest turn in the ongoing softwood lumber affair between the US and Canada (see BRIDGES Weekly, 27 March 2001), on 2 April the US-based Coalition for Fair Lumber Imports (CFLI) petitioned the US International Trade Commission for duty relief from what it considers unfairly subsidised softwood lumber imports from Canada. CFLI maintains that Canadian "stumpage rates" -- harvesting fees levied by provincial governments -- are too low, do not reflect market value, and restrict US softwood lumber producers' market share. The petition comes immediately following the expiration of the Canada-US Softwood Lumber Agreement which, in part, prohibited US producers from taking action against the price of Canadian softwood lumber imports. The ITC will begin investigating the CFLI claim and determine whether or not countervailing duties are warranted. Three similar ITC investigations in the last 20 years have failed to find the Canadian pricing regime at fault. "US Coalition For Fair Lumber Imports Demands Relief From Canadian Subsidies, Dumping," CFLI PRESS RELEASE, 2 April 2001; "Statement By Pierre Pettigrew, Minister For International Trade, In Response to US Softwood Lumber Trade Action," 2 April 2001.

MONSANTO WINS PATENT INFRINGEMENT CASE. On 29 March, Canadian Federal Court Judge W. Andrew MacKay ruled in favour of Monsanto Co. in what has become a landmark case involving biotechnology patent holders and the international environmental community. The case involves Percy Schmeiser, a Canadian canola farmer, who was accused of knowingly cultivating canola derived from Monsanto patented canola seeds which Schmeiser claimed blew onto his farm from a neighbouring field. Having been found guilty of patent infringement, Schmeiser is now required to compensate Monsanto for damages resulting from the patent infringement. Details of the ruling can be obtained from the Federal Court of Canada website. "Farmer Liable After Biotech Pollen Blows Onto his Field," INTERNATIONAL HERALD TRIBUNE, 1 April 2001.

CODEX TASK FORCE FAILS TO AGREE ON TRACEABILITY. At its meeting on 25- 29 March in Chiba, Japan, the Codex Ad Hoc Intergovernmental Task Force on Foods Derived from Biotechnology made significant progress in setting international standards for foods derived from biotechnology, but failed to reach consensus on the issue of traceability, mainly due to disagreements between the EU and US. The inclusion of traceability requirements -- i.e., a system for tracing all foods and food components from their origin to the point of final consumption -- in the 'Draft General Principles for the Risk Analysis of Foods Derived from Modern Biotechnology' failed mainly due to opposition from the US, Canada, Australia, New Zealand, South Africa, India and Indonesia, according to Alan Randell, a senior food standards official at the UN Food and Agriculture Organisation (FAO). "Some countries think that traceability is too expensive and is not needed," he said. The EU, however, regards such a system as necessary and is currently developing its own EU-wide regulations on traceability. Randell declined to offer further comment on other progress reached by countries. The meeting documents are available at: http://www.who.int/fsf/GMfood/.  "Cost worries block accord on GM food traceability," REUTERS, 3 April 2001; ICTSD Internal Files.

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