Brussels/Geneva, 22/06/2000 (Agence Europe) - A World Trade Organisation (WTO) arbitration panel should confirm, mid-July, the sound basis of the French embargo against asbestos, a measure that the European Union defended against Canada. Thus this panel will give its assent to the guideline from its interim report, in which it weighs that traditional arguments brandished by the world's second largest producer and exporter, giving the priority to protection of health over the general rules of free trade and non-discrimination. A first in the body's history, guardian of international trade law, which opens the path for the generalised ban of asbestos in the EU by 2005.
It is in October 1998 that Canada - of which the Quebec province contributes close to a quarter of the world asbestos production - called for the arbitration by the WTO, with the support of the United States and Brazil as third parties. France, who was its main market, had for one year banned all use - production, sale, and importing included - of this substance for public health reasons, as did other Member States, mainly northern. Last July, the EU decided to block their path, by adopting an embargo Directive whose implementation must be completed in five years. In the mean time, the Community intervention in the Franco-Canadian dispute is due to its competence in trade policy.
The main argument put forward by the Commission - who represents the EU 15 in Geneva - raises the right of WTO member countries to take measures they feel necessary for the protection of health and the life of people, a right that stems from Article 20b of GATT in 1994. This Article was already invoked and assessed in the framework of trade disputes, but never, to this day, a measure acting as a barrier to trade flows has been justified by a panel in the light of this exception clause. In the present case, the special group called on the opinion of independent experts (3 Australians and 1 American) who jointly testified of the carcinogenic effects of crystalline asbestos and the absence of measures to ensure its safety. Canada argued that this type of asbestos, said fibrous, (generally used to make asbestos-cement products such as pipe covers and other construction materials) could be used without danger under certain conditions and attributed the 200 deaths registered each year in France in relation to asbestos, to the use of amphibole asbestos, banned today. This country, which has seen its production collapse with the confirmations of the health risks, put forward the discriminatory aspect of the French ruling, by trying to point out that this is a case of an "unjustified barrier to trade." In its interim conclusions, the panel recognised that the embargo measures are against the non-discrimination rules contained in Article 3 of GATT; nevertheless it endorsed its health justification and feels that the exception foreseen by this same agreement (the renowned Article 20b) could come into play. No doubt this verdict will be confirmed next month, despite the comments expected from Ottawa and other parties. In fact, if these comments are in principal susceptible of including a reorientation of the analysis of the expert jury, this possibility usually leads to technical amendments. Obviously, Ottawa could still appeal against this verdict, as the spokesperson for the Ministry for international trade did not fail to note.