Press Release: WTO Appellate Body confirms that Canada Auto Pact is contrary to WTO rules

In a ruling issued 31 May 2000, the WTO Appellate Body found that the Canadian regime for importation of automotive products (so-called 'Auto Pact') violates WTO rules. The report confirms and refines earlier findings by a WTO panel that the Auto Pact is in breach of several key provisions of the GATT and the WTO Agreement on Subsidies. The ruling will have a significant beneficial impact on the European automobile industry by creating a level playing field vis-à-vis its Canadian and US competitors in the Canadian market. The European Union expects Canada to implement the recommendations of the Appellate Body swiftly in order to bring its regime into line with the ruling.