P.M. BRIEFING : GATT Stalls on U.S.-Canada Tiff
The GATT Council postponed action today on a panel ruling that declared the United States the winner in a trade dispute with Canada over Canadian import restrictions on ice cream and yogurt.
Canada imposed the limits in January, 1988, on the grounds that it could incur a raw milk surplus because of imports of American ice cream and yogurt. Washington charged that the restrictions violated free trade rules of the 97-nation General Agreement on Tariffs and Trade, and won its case last month before a special dispute panel.
That panel’s decision came up for adoption at the October monthly meeting of the permanent GATT Council today and Canada promptly expressed “considerable reservations,” GATT spokesman David Woods said. Australia, New Zealand and the Nordic countries sympathized with the Canadian argument for protective tariffs and agreed that the panel ruling requires further study, Woods said.
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