EUROPEAN COMMUNITIES – MEASURES CONCERNING MEAT AND MEAT PRODUCTS (HORMONES)
Document: Joint Communication from the European Union and Canada
Date: 22 March 2011
Document codes: WT/DS48/26
Complainant: Canada
Respondent: EU
Third parties: Australia, New Zealand, Norway, U.S.
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. 4  AgricultureArt. 2, 3, 5  Sanitary and Phytosanitary Measures (SPS)Art. 2  Technical Barriers to Trade (TBT)Art. III, XI  GATT 1994Art. 5  Technical Barriers to Trade (TBT)

French

EUROPEAN COMMUNITIES – MEASURES CONCERNING
MEAT AND MEAT PRODUCTS (HORMONES)

Joint Communication from the European Union and Canada

 The following communication, dated 17 March 2011, from the delegations of the European
Union1 and Canada to the Chairperson of the Dispute Se ttlement Body, is circulated at the request of
those delegations.

 Please find attached a Memorandum of Unders tanding between the Government of Canada
and the European Commission regarding the importation of beef from animals not treated with certain
growth-promoting hormones and increased duties app lied by Canada to certain products of the
European Union, in relation to the dispute (DS48).
 We would be grateful if this Memorandum of Understanding could be circulated to the
Dispute Settlement Body.

For the European Union: For the Government of Canada:

_________________________ _________________________

H.E. Mr. Angelos Pangratis
Ambassador
Permanent Representative of the European Union
to the
H.E. Mr. John Gero
Ambassador
Permanent Representative of Canada to the

Geneva, Switzerland on this 17
th day of March 2011

1 On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on Europe an Union and the Treaty
establishing the European Community (done at Lisbon , 13 December 2007) entere d into force. On 29
November 2009, the WTO received a Verbal Note (WT/L/779) from the Council of the European Union and the
Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 1 December
2009, the European Union replaces and succeeds the European Community.

M
EMORANDUM OF UNDERSTANDING BETWEEN
THE GOVERNMENT OF CANADA AND THE EUROPEAN COMMISSION
REGARDING THE IMPORTATION OF BEEF FROM ANIMALS NOT TREATED WITH CERTAIN
 GROWTH-PROMOTING HORMONES AND INCREASED DUTIES APPLIED BY CANADA TO CERTAIN
PRODUCTS OF THE EUROPEAN UNION

 The Government of Canada ("Canada") and the European Commission ("the Commission"),
jointly referred to as "both sides", have reach ed an understanding, as documented in this
Memorandum of Understanding ("MOU"), regardin g a roadmap concerning intended steps involving
the importation of High Quality Beef into the Eur opean Union ("EU") and the level of increased
duties imposed by Canada on certain EU products in connection with the dispute ("DS48").

 Canada and the Commission envisage the initiati on of the necessary internal procedures for
taking the steps envisaged in this MOU. Following completion of those steps, Canada and the EU
envisage notifying this MOU as a mutually agreed solution to the Dispute Settlement Body ("DSB").

 This MOU is not an international agreement between Canada and the Commission, nor does it
otherwise create any legal obligations between Canada and the EU or between the signatories.

 Signed in duplicate at Geneva, Switzerland on this 17
th day of March 2011, in the English and
French languages.

FOR THE GOVERNMENT OF CANADA FOR THE EUROPEAN COMMISSION

ANNEX

1. In order for Canada and the Commission to gain additional experience from expanded trade in
High Quality Beef and to facilitate a transition to lo ng-term conditions for such trade, Canada and the
Commission envisage the following:
(a) During the first phase ("Phase 1"):
(i) Expansion of the market access of High Quality Beef to the EU; and
(ii) Suspension of all increased duties imposed by Canada on certain EU products
pursuant to the authorization of the World Trade Organization ("WTO") of
1999 (the "increased duties");
(b) The opportunity to move to a second phase ("Phase 2") for further expansion of
market access of High Quality Beef to the EU; and
(c) The further opportunity for entering into a third phase ("Phase 3") with regard to
DS48.
(d) For the purposes of this MOU, "High Quality Beef" is defined as follows:
(i) Beef cuts are obtained from carcasses of heifers and steers less than 30
months of age which have only been fed a diet, for at least the last 100 days
before slaughter, containing not less than 62 % of concentrates, and/or feed
grain co- products on a dietary dry matter basis, that meets or exceeds a
metabolisable energy content great er than 12.26 mega joules per one
kilogram of dry matter.
(ii) The heifers and steers that are fed the di et described in point (i) are fed, on
average, no less than 1.4 % of live body weight per day on a dry matter basis.
(iii) The carcass from which beef cuts are derived is evaluated by an evaluator
employed by the national government who bases the evaluation, and a
resulting classification of the carcass, on a method approved by the national
government. The national government evaluation method, and its
classifications, evaluates expected carcass quality using a combination of
carcass maturity and palatability traits of the beef cuts. Such an evaluation
method of the carcass includes, but is not limited to, an evaluation of the
maturity characteristics of colour and texture of the longissimus dorsi muscle
and bone and cartilage ossification, as well as an evaluation of expected
palatability traits, including a combination of the discrete specifications of
intramuscular fat and firmness of the longissimus dorsi muscle.
(iv) The cuts are labelled in accordance with Article 13 of Regulation (EC)
No. 1760/2000 of the European Parliament and of the Council.
(v) The indication "High Quality Beef" may be added to the information on the
label.
2. (a) At the beginning of Phase 1, an increase of an annual quantity of 1500 Metric Tonnes
of High Quality Beef to the autonomous tariff rate quota for High Quality Beef, with

an in-quota tariff rate of zero (0%), established by the EU in Council Regulation (EC)
No. 617/2009, of 13 July 2009, is envisaged.

(b) As soon as possible in the weeks following th e signing of this MOU, the suspension
of all increased duties on certain EU products under the European Union Surtax
Order of Canada is envisaged. Canada will initiate the domestic process for such
suspension upon the signing of this MOU.
(c) Should Phase 2 begin, as described in paragraphs 1(b) and 5(a)(iii), an increase is
envisaged in the quantity of the autonomous tariff rate quota referred to in
paragraph 2(a) to 3,200 Metric Tonnes product weight, at a zero duty rate.
(d) Should Phase 3 begin, as described in paragraphs 1(c) and 5(d):
(i) The maintenance of the quantity of the autonomous tariff rate quota referred
to in paragraph 2(a), at the level specifi ed in paragraph 2(c), is envisaged; as
well as
(ii) The termination of all the increased duties imposed in connection with DS48.
3. If the event envisaged in paragraph 2(a) has not occurred by July 31, 2012, Canada may
reinstate the increased duties imposed by Canada on the EU products that are listed in the European
Union Surtax Order of Canada, pursuant to the authorization of the WTO of 1999.
4. (a) It is envisaged that the autonomous tari ff rate quota referred to in paragraph 2 will be
administered by the Commission in accord ance with the rules applied for similar
import tariff rate quotas for agricultural pr oducts managed by a system of import
licenses.

(b) It is envisaged that the Commission will implement and administer the autonomous
tariff rate quota referred to in this M OU in accordance with Article XIII of the
General Agreement on Tariffs and Trade (GATT) 1994, including its interpretative
notes, and the Agreement on Import Licensing Procedures.
(c) It is envisaged that the Commission will make every effort to administer the
autonomous tariff rate quota referred to in paragraph 2 in a manner that allows
importers to make full use of it.
5. (a) Both sides envisage:

(i) Monitoring and periodically reviewing the operation of this MOU;
(ii) Upon the request of either side, additio nal bilateral consultations regarding
the operation of this MOU, including issues of quota management, no later
than thirty (30) days following the rece ipt of a request for consultations in
writing; and
(iii) Meeting no later than three (3) mont hs from the commencement of Phase 1,
to review the operation of Phase 1, with a view to entering into Phase 2.
(b) Should Phase 2 begin, both sides envisage, beginning no later than six (6) months
from the date on which the increase in the autonomous tariff rate quota described in

paragraph 2(c) occurs, meeting to review the operation of Phase 2, with a view to
entering into Phase 3.
(c) Such a review will cover, inter alia, the following issues:
(i) The duration of Phase 3;
(ii) The status and effect of this MOU under the Understanding on Rules and
Procedures Governing the Settlement of Disputes (DSU);
(iii) The consequences of non-occurrence of an envisaged event foreseen under
this MOU; and
(iv) The status and disposition of any dispute settlement proceeding in DS48.
(d) After concluding the review referred to in paragraph 5(c), if both sides reach an
understanding on conditions for entering into Phase 3, they may amend this MOU in
writing in order to reflect the conclusions of the review. Such an amendment will
not alter the core steps referred to in paragraph 2(d).
6. (a) Phase 1 is envisaged to last until 1 August, 2012.

(b) Should Phase 2 begin, Phase 2 is envisaged to have a duration of one (1) year.
(c) If no understanding as referred to in paragraph 5(d) is reached by the end of Phase 2,
it is envisaged that this MOU will be c onsidered no longer applicable, unless both
sides state otherwise in writing. During a period of six (6) months following such an
event, it is envisaged that the event as described in paragraph 2(c) would be
maintained.
(d) Either side may inform the other that it no longer envisages the events described in
this MOU by providing written notice to the other side. Should either side provide
such written notice, it is envisaged that this MOU would no longer be considered
applicable six (6) months from the date su ch notice was provided. Should both sides
provide such written notice, it is envisaged that this MOU would no longer be
considered applicable six (6) months from the earliest of the dates on which such
notice was provided. During this six (6) month period, it is envisaged that the
provisions in paragraph 2, applicable at the time of the provision of the written notice,
would be maintained.
7. (a) It is envisaged that neither Canada nor the EU will request the establishment of a
panel under Article 21.5 of the DSU in DS48 before 1 February 2011.
(b) If a panel is established under Article 21.5 of the DSU in DS48 , it is envisaged that
both sides will work together to ensure that:
(i) The interim report is not issued; and
(ii) The authority of the panel does not lapse due to the expiry of the period
referred to in Article 12.12 of the DSU before the end of Phase 1, if neither
side withdraws from Phase 1 before its conclusion, or Phase 2, if both sides
should enter into Phase 2 and neither side withdraws from Phase 2 before its
conclusion. It is envisaged that Cana da and the EU will take the steps that

may be necessary to achieve those objectives. Without limiting the foregoing,
it is envisaged that Canada and the EU would jointly request the panel to
include in its Working Procedures that the panel will provide notice to the
parties five (5) weeks before issuing the interim report; if the date of issuance
of the interim report is during Phase 1 or Phase 2, Canada and the EU will
request the panel to suspend its proceeding.
(c) This MOU or Canada's or the EU's taking of any of the steps contemplated by this
MOU is without prejudice to the disagreem ent between them regarding whether the
DSB recommendations and rulings in DS48 have been implemented.
(d) This MOU does not affect the rights and oblig ations of Canada and the EU under the
Agreement Establishing the World Trade Organization.