CANADA BANS BULK WATER EXPORTS FROM BOUNDARY WATERS

As one of its final moves of 2001, the Canadian government on 20 December enacted legislation amending the International Boundary Waters Treaty Act (IBWTA) that prohibits the bulk removal of water from Canadian boundary waters. The legislation also sets in place a licensing regime for water projects on these boundary bodies. The amendments were the last step in a three-part strategy to prohibit bulk water removal from Canadian water basins, announced in February 1999, which according to Canadian Environment Minister David Anderson, "protects the ecosystems and communities that depend on a sustainable supply of water."

"Canada Enacts Legislation Banning Bulk Water Exports From The Great Lakes" CANADIAN DEPARTMENT OF FOREIGN AFFAIRS AND INTERNATIONAL TRADE, 20 December 2001.

US APPLIES PRESSURE TO REMOVE EU GMO BAN

On 8 January 2002, officials from the both the US and the European Commission indicated that they hoped a March meeting of European Union leaders would result in expediting the removal of the EU's 1998 de facto ban on approving new genetically-modified products. Many EU member states insist that rules for traceability and labeling of GMOs be in place prior to resuming the approval process. A recent EC 'Eurobarometer' poll suggests major support for this precondition, with 94.6 percent of EU citizens wanting the right to choose over GM foods. The US cites one impediment to moving the agenda forward as the fact that "individual Member States will continue to be able to hold the approval process hostage to political concerns". Furthermore, one US official said he would like to see the EC take the members to the European Court of Justice over the biotech issue. Officials say the framing of the debate at the March meeting is focused around the concern that keeping the ban puts European companies at a competitive disadvantage.

"US, EU Officials Target March Meet For GMO Progress" REUTERS, 9 January 2002; "EU Leaders' Summit in March May Decide On Lifting of GMO Moratorium, Officials Say" INTERNATIONAL TRADE REPORTER, 10 January 2002.; "US Steps Up Pressure on EU GMO Legislation" FOEI, 16 January 2002.

NEW DANISH GOVERNMENT MOVES TO ALLOW CANNED DRINKS AGAIN

The recently elected centre-right Danish government indicated on 11 January 2002 that is was ready to lift its ban on beer and soft drinks sold in cans. In a court case initiated by the EC, Denmark is facing charges for breach of the EU's packaging directives. Currently, Denmark allows beer and soft drinks in recyclable bottles. Some speculate that the removal of the ban will make it easier for foreign brewers to enter the Danish beer market, where the Carlsberg brewery currently holds a 70 percent market share.

"Denmark Lifts Ban on Canned Beer and Soft Drinks" REUTERS, 11 January 2002.

'HEMP IS NOT POT' SAYS CANADIAN FIRM AS LATEST NAFTA CH. 11 SUIT LAUNCHED

In a flare-up of a 1999 US-Canada trade dispute, Canadian agricultural firm Kenex Ltd. filed a notice of intent to bring an investor-state (North American Free Trade Agreement - NAFTA Chapter 11) suit against the US government. On 9 October 2001, the US Drug Enforcement Agency (DEA) issued an interpretive rule immediately making hemp foods having any trace of THC (the psychoactive ingredient in marijuana) illegal under the 1971 Controlled Substances Act. In response to the DEA's new rule, the Canadian government stated last month that, "there is no evidence that the effective ban...is based on any risk assessment." The US (and Canada) are currently using the risk assessment argument against the EC over Europe's refusal to import genetically modified agricultural products from North America. Sterilised hemp seed are recognised as an exceptional source of protein, essential fatty acids, and vitamin E. The US is the only major industrialised country to prohibit the growing and processing of hemp.

"Canadian Company Will Sue to Prove Hemp is Not Pot" ENVIRONMENTAL NEWS SERVICE, 14 January 2002.