Legal Aspects of International Trade: Canada v. Australia Salmon Case

This case study examines the legal dispute between Canada and Australia concerning the importation of salmon. The core issue revolves around Australia's restrictions on Canadian salmon imports, citing quarantine measures. The case was brought before the World Trade Organization (WTO), with C...Read More

LEGAL ASPECTS OF
INTERNATIONAL TRADE
AND ENTERPRISE

Executive Summary
International law refer to such laws which set the norms, rules and regulation imposed on
other country and such country is bound to follow such rules if they are dealing with them to
carry their business activities for longer terms. In this case study the issue is between the Canada
V Australia regarding the measures of affecting the importation of Salmon. It can be finds that
case is referred to the Dispute settlement Body who appointed a penal to solve the matter
regarding such trade disputes and under article 21.3 various rules and procedures are
implemented for settling the disputes regarding such matters. It is examined that the order are in
favour of Canada and the Australia country are imposed on certain rules which they violates
under article as they are not under to ban the trade activities.

Table of Contents
BACKGROUND.............................................................................................................................4
FACTS ............................................................................................................................................4
LEGAL ISSUE................................................................................................................................5
INDIVIDUAL PARTIES ARGUMENTS ......................................................................................6
TRIBUNAL DECISIONS...............................................................................................................7
IMPORTANCE OR SIGNIFICANCE IN INTERNATIONAL LAW...........................................8
REFERENCES................................................................................................................................9

BACKGROUND
As the case is between the Canada V Australia regarding the measures affecting the
importation of Salmon which is useful for the health diseases. In this case study Canada made a
complaint against the Australia for restricting the imports of fresh salmon which is also a part of
their quarantine which helps them to measures from the health diseases. Salmon is one type of
fish which is larger size and which usually solve much health problems (Lincoln and Gubbins,
2018). Canada applied for the complaint against the Australian to the WTO of whom both are the
member of the WTO. In 1990 this disputant was arises and in 1995 Canada file a complaint or
suit against the Australian to WTO.
In 1997 the decision of panel came across which minutely examines the mattes of the
trade dispute and organise various facts and decision regarding such matters. On 6th November
1998, the case is further referred to the Dispute settlement Body who appointed a penal to solve
the matter regarding such trade disputes (Sornarajah, 2017). Under article 21.3 various rules and
procedures are implemented for settling the disputes regarding such various issue which
affecting the heath of the people and to rectify such problems regarding their heath issues.
FACTS
As in this case the matter is solved by the appointing the arbitration which acted as a
neutral person between both the parties. Canada demand to the penal authority to appoint as an
arbitration which can solve the matters and also provide fair judgement which didn't affects any
country rights and also their decision give effective liability to the country. Thus, Arbitration
means the person which is appointed to settle the dispute between the parties (Subedi, 2016). It
can be appointed as the mutual consent between the parties or through the order of the courts
regarding their appointment. Thus, it is the agreement between the parties to appoint one or more
arbitrators to settle their disputes and provide fair decision which helps them to settle their
matters in a better manners (Dispute Settlement Report 1999, 2019). The major effect of the
arbitrators is that it provides opportunity of hearing to both the parties and the decision provided
by them are legally binding on both the parties. After the decision appointed by the arbitrator
they cannot reach to court of further judgement both the parties are legally bound to follow such
rules and decision given by the arbitrators. The decision is given in terms of arbitration award. It
can also be termed as out of court settlement.

The facts relating to this case is related to the final judgement made by the arbitrator
regarding to the importation of Salmon fish. This method is the time consuming method and also
provides speedy judgement. Both the countries by their mutual consent appoint the arbitrator to
settle their matters. As there are various method to solve the disputes In ADR there are various
method such as mediators, negation but they choose arbitration method, so that they can discuss
their matters which the unknown person and they get the fair decisions (Senarathna and et.al.,
2016). The best way to choose the arbitrator is that he is an unknown person and both the
countries can discuss such matters which they cannot discuss in the courts or with any of the
parties in the suit. In such a case the facts which they god is related to the matters and decision
which enhance their values and their decision in the better way.
LEGAL ISSUE
The issue which are presented in this case study is relating to the restriction in importing
the Salmon fish which helps to improve the health issue of the people and also various benefits
are provides to the people who are suffering from many diseases. In this case study Australia
restricts Canada to import the Salmon which is badly needed to Canada to improve their
condition of the people (Picciotto, 2017). Canada requested the Australian country to provide
access to the uncooked Salmon which results in raising their quarantine policies regarding
importing of the fish through ocean. Australian mentioned their issue regarding imposing
restriction is that they cannot import such fish if they are fresh, chilled and frozen this bring more
loss to the country by imposting and dead fish. At the time it takes the fishes to delivery to that
country they are dead and thus it results in not importing such bulk order of Salmon.
The issue also arises that they refer the matter to the Panel report and thus the appellate
body refer all such matters to the governing authority through which they get the judgement of
their case matters. The issue also arises that Australia never impose restriction on importing
animals products but after resulting in so much of dead animals they impose restriction just
clicking in mind the status of animals and their health issue (Whincop, 2017). Also, if the person
use such product they also get affected through such diseases which results in getting more
medical facilities instead of solving the issue by eating the Salmon.

INDIVIDUAL PARTIES ARGUMENTS
In the case of Canada V Australia regarding the restriction on importing Salmon, the
major issue or argument is regarding the delivery of salmon through ocean. Through which
Australian country agree that due to transporting the salmon it results in dead of fishes or
sometimes more storage provide bad smell in the fishes which affects the heath of the people
(Tarique, Briscoe and Schuler, 2015). As Salmon fish is used by the people to improve their
heath condition. It contains polyunsaturated acids which improve the cholesterol of the people.
By adapting these fish in the diet chart it helps in losing the weight or also helps in development
of brain to the faster process.
Canada argued with the Australian country that it bring longer life to the people if they
supply it with uncooked fish. As cooked fish results in lack of protein and also the usefulness is
occurs if they prepared with their own strategy. Many hospitals and their patients are specially
dieted or order using this dish in their bunch so that they can stay fit and recover from their
diseases in smoother way (Rothwell and Stephens, 2016). There is no side effects to implement
or use in their diet chart as it helps to control the working of the body parts and also provides
more protein if any person is suffering anxiety or at the position of depression.
Both the side argument continue in various aspect, they both discuss the factors which
results or happens at the time of importing the Salmon. After having a deep discussion regarding
the importing of the Salmon they decided to approach to the court so that they appoint an
arbitrator to settle their matters and provide a valid judgement which didn't affect both the rights.
The decision through arbitrator approaches in a manner that the penal is taking so much time to
provide the judgement which affecting the Canada to improve the condition in such matters that
files suit regarding the appointment of arbitrator so that they can get the judgement in on a
speedy base (Perera and Chand, 2015). Thus, penal decide the arbitrator to act between both of
them. They individually listen to both the parties and also reflect various condition and
circumstance which affecting their rights regarding the importing of fishes.
Australian tells that they cannot deliver the fishes as they are chilled, frozen and fresh
which represent the uncooked salmon and there are more chances of dead. As per the survey it
cam across that Australia is the fastest growing country in terms of sea food productions and as
per its terms Salmon is the main part of their progress which they import in different countries to

grow their business at large scale. Canada demands this fish species to improve the health
condition of the people (Lester, Mercurio and Davies, 2018).
TRIBUNAL DECISIONS
According to the decision given by the WTO regarding the dispute between the Canada V
Australia regarding the importing of the Salmon the judgement is in favour of Canada and also
they impose restriction and violation against the Australia for imposing such restriction towards
the Canada for importing the Fish which helps in improving their health conditions. After the
matter referred to the DSU panel they examined various facts personally and with the helps of
the scientific experts they came to the factors and decision is made against the Australia country
that they violate various acts which are clearly mentioned under the article that the action which
the Australian is taking are inconsistent (Jenner, 2016). Firstly in relation to tribunal decision,
they violate the rules which are mentioned in Article 5.1 of the SPS agreement that there is no
such matter of risk which is so associated regarding the banned on importation. They use
different strategies to deliver the goods if they find that it results in dead animals at the time of
importing and exporting.
The second tribunal decision is related to transportation of uncooked Salmon. They also
impose various question to Australia that they use various strategies to trade the fish but they use
the simple method to deliver the fishes to different country which results in dead of fishes. They
also have to maintain the sanitary protection which give longer to the life till they reach to their
original destination. The judgement also to be imposed on discrimination which results in
violation of rules imposed by the government for not discriminating them according to the need
which is demanded by other countries (Mason and Doherty, 2016). If the decisions are made in
respect of Appellate body than the decision can be modified, amended or changes according to
the need and decision of the other party. In this case the decision cannot be changes as it violates
the provision of the rules regarding the trading business and the matters related to import and
export of goods and services. Thus, it was concluded that Australian impose ban on taking the
consideration of the heath aspects of the Salmon while the Canadian imposed that there is no
scientific evidence found regarding the importing of the salmon. In such cases both the parties
settle their dispute related matters in 2000 (Hughes, 2018).

IMPORTANCE OR SIGNIFICANCE IN INTERNATIONAL LAW
According to it, the international law can be summarized as the rules, regulation and
standard norms which is imposed to maintain the close and fair relationship with the countries
and if they deal with other parties they can fairly make decision and judgement as they are under
the government norms. Every state had their own rules which means that international law differ
from state to state and their norms and condition also vary from different places (Koul, 2018).
Through such laws they protect the rights, interests and status of the person and there rights to do
any business if they are according to the government norms. These laws run from the ancient
times and they are amended according to the changes in time and need of the case which results
in affecting the right of the person.
In the cases of Canada V Australia, Australian country had ignored various rules which
imposed trade barriers to different countries regarding the importation of Salmon. But Canadian
accepts the salmon in every condition as they help in improve the health diseases of the people
and also it's contain lot of protein which engages the person health for longer period. Law are
implemented in the better way so that both the countries provide chances to get the fair decision
and they can enhance their stability and business for longer terms (Schebesta and Sinopoli,
2018). Usually to maintaining the close relationship with both the countries and if they both
work under the certain norms this helps to grow their business and also bring more opportunities
in the market. This case reflects the fair decision which is presented by WTO in which both the
countries are the member represents the effective decision and they both are liable to make the
trade business in terms of Salmon which is needed for both the countries to improve the
condition of the society In a better way.

REFERENCES
Books and journals
Hughes, V., 2018. Canada: A Key Player in WTO Dispute Settlement.
Jenner, P., 2016. Social enterprise sustainability revisited: an international perspective. Social
Enterprise Journal. 12(1). pp.42-60.
Koul, A. K., 2018. WTO Agreement on Sanitary and Phytosanitary Measures (SPS). In Guide to
the WTO and GATT. (pp. 451-468). Springer, Singapore.
Lester, S., Mercurio, B. and Davies, A., 2018. World trade law: text, materials and commentary.
Bloomsbury Publishing.
Lincoln, R. and Gubbins, L., 2018. When Criminal Laws affects Business Enterprises: A Case
Study of the Tattoo Parlours Act in Queensland, Australia. International Journal of
Business and Social Science. 9(7). pp.35-41.
Mason, C. and Doherty, B., 2016. A fair trade-off? Paradoxes in the governance of fair-trade
social enterprises. Journal of Business Ethics. 136(3). pp.451-469.
Perera, D. and Chand, P., 2015. Issues in the adoption of international financial reporting
standards (IFRS) for small and medium-sized enterprises (SMES). Advances in
accounting. 31(1). pp.165-178.
Picciotto, S., 2017. Rights, responsibilities and regulation of international business.
In Globalization and International Investment. (pp. 177-198). Routledge.
Rothwell, D. R. and Stephens, T., 2016. The international law of the sea. Bloomsbury
Publishing.
Schebesta, H. and Sinopoli, D., 2018. The Potency of the SPS Agreement’s Excessivity Test:
The Impact of Article 5.6 on Trade Liberalization and the Regulatory Power of WTO
Members to take Sanitary and Phytosanitary Measures. Journal of International Economic
Law. 21(1). pp.123-149.
Senarathna, I. and et.al., 2016. Security and privacy concerns for Australian SMEs cloud
adoption: Empirical study of metropolitan vs regional SMEs. Australasian Journal of
Information Systems. 20.
Sornarajah, M., 2017. The international law on foreign investment. Cambridge University Press.
Subedi, S. P., 2016. International investment law: reconciling policy and principle. Bloomsbury
Publishing.
Tarique, I., Briscoe, D. R. and Schuler, R. S., 2015. International human resource management:
Policies and practices for multinational enterprises. Routledge.
Whincop, M. J., 2017. From bureaucracy to business enterprise: Legal and policy issues in the
transformation of government services. Routledge.
Online

Dispute Settlement Report 1999. 2019. [Online]. Available through:
<https://www.cambridge.org/core/books/dispute-settlement-reports-1999/australia-
measures-affecting-importation-of-salmon-wtds189-award-of-the-arbitrator-under-art-icle-
213c-dsu-australia-salmon/BA80074B2D2C9F85849E52E4FC82358C>.