WTO Upholds French Ban on Asbestos

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WTO Upholds French Ban on Asbestos

GENEVA, Switzerland, March 13, 2001 (ENS) - The World Trade Organization has

ruled that France did not violate international trade rules when it banned

asbestos.

Anxious to protect a C$200 million (US$129 million) a year business, Canada

had appealed an earlier WTO decision on the basis that the international

trade organization acted outside of its mandate by upholding a French ban on

chrysotile asbestos.

Workers in the ship building and construction industries who installed

friable asbestos insulation materials were severely affected by dust levels

100 to 200 times higher than those permitted by current standards. (Photos

courtesy Canadian Asbestos Institute)

Canada's appeal tested the authority of WTO rules, which allow countries to

restrict trade where necessary to protect human health or the environment.

Despite the carcinogenic character of asbestos, Canada had claimed that

France was not entitled to prohibit the import and marketing of certain

asbestos products - in particular, chrysotile cement - because health risks

could be substantially reduced if adequate precautions were taken.

In November 1998, a WTO panel was asked to decide whether France's ban was

in accordance with the provisions of multilateral trade agreements and fell

within the scope of the Agreement on Technical Barriers to Trade.

Last September, four WTO arbitrators found that while the French decree was

discriminatory and contrary to its obligations under international trade

principles, it was not a technical regulation and so could not fall foul of

rules on technical barriers to trade.

Ninety percent of the world production of chrysotile is used in the

manufacture of chrysotile cement, in the form of pipes, sheets and shingles.

The panel decided that the ban was legitimate because WTO rules allow

countries to restrict trade where necessary to protect human health or the

environment. A month later, Canada appealed this decision on the grounds

that the panel had ruled outside of its mandate.

Today's ruling issued in a report by the WTO's Appellate Body in Geneva

upholds the panel's decision that the dangers posed by the professional or

accidental manipulation of asbestos justify strict measures, including a

ban.

In a landmark finding, the Appellate Body said that health considerations

must be taken into account when interpreting anti-discrimination rules, and

products entailing health risks cannot be compared with safer substitutes.

Governments can therefore treat dangerous substances differently, said the

Appellate Body.

Asbestos is a fibrous mineral found naturally in nearly two thirds of the

Earth's crust. It was long used in construction and manufacturing because it

is incombustible, durable, versatile and resistant to chemicals.

But when asbestos fibers are inhaled, they cause cancer, which is why potent

classes of the mineral, called amphiboles, are no longer used.

Canada's Natural Resources Minister, Ralph Goodale. (Photo courtesy Ministry

of Natural Resources)

They can cause asbestosis (serious scarring of the lung), lung cancer and

mesothelioma, a cancer of the lung's lining. Asbestos induced diseases can

take as long as 20 years to develop.

Canada contends that chrysotile, sometimes called white asbestos, can be

used safely in products such as building materials, brake linings, and water

and sewer pipes. Integral to safe use is a cement or resin matrix which

encases chrysotile asbestos fibers stopping them from dispersing into the

environment.

Canada calls itself a global leader in the sustainable development of

natural resources, and claims its safe use principle has solid scientific

backing.

It is the world's leading exporter and second largest producer of chrysotile

after Russia. Canada produced some 320,000 tonnes in 1998, accounting for

18.2 percent of global output and 2,500 jobs in Quebec where asbestos is

mined.

In December 1996, France decided that the health hazards posed by the

professional or accidental manipulation of asbestos and asbestos products

warranted a ban on all forms of the substance.

The ban covers the production, transformation, sale, importation and

marketing of asbestos and asbestos products, with certain exceptions for

applications where safer substitutes do no exist.

European Union Trade Commissioner, Pascal Lamy. (Photo courtesy European

Commission)

Prior to the ban, France was Europe's biggest importer of chrysotile from

Canada.

Responding to today's decision by the WTO's Appellate Body, Canada's Natural

Resources Minister, Ralph Goodale repeated that Canada does not dispute a

country's right to protect public health.

" In Canada, we achieve the same health protection objectives through our

policy of controlled use of certain specific applications of chrysotile

asbestos, " said Goodale.

" Canada's policy of safe use is well founded because it has a sound

scientific basis and is a responsible approach. "

Canada's International Trade Minister, Pierre Pettigrew said he was

disappointed by the ruling, but pleased that it clarified certain legal

principles. The country's interest in the case extends well beyond

chrysotile asbestos. It is one of the world's leading producers of minerals

and metals, such as aluminum, copper, nickel and zinc.

The European Union, which took up the French cause when Canada began dispute

settlement proceedings at the WTO in May 1998, welcomed the ruling.

Canada's International Trade Minister, Pierre Pettigrew. (Photo courtesy

Canadian Ministry of Foreign Affairs)

" This ruling shows that the WTO is responsive to our citizens concerns, "

said European Union Trade Commissioner, Pascal Lamy.

" Legitimate health issues can be put above pure trade concerns. The ruling

confirms that regulators can set the desired level of protection of health. "

The 15 member European Union banned five out of six types of asbestos in

1991, and the use of the remaining type - chrysotile - was allowed only in

specific cases.

In July 1999, the European Commission imposed a complete ban on chrysotile,

which must be implemented across Europe by January 2005. The only exception

to the ban is the use of chrysotile in diaphragms, which are used for

electrolysis in certain chlorine plants.

They are the only current use of chrysotile asbestos for which it is not

technically possible to substitute without creating a safety problem.