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WTO

Canada fights EU seal trade ban at WTO

Seal-hunters must have the same rights as fishermen, Canada's Environment Minister Leonoa Aglukkaq insists, as her country battles a Brussels' trade ban this week at the Geneva-based World Trade Organization.

Canada fights EU seal trade ban at WTO
Rhys Ifans: lobbies WTO against seal hunt. Photo: Rae Hanson

Speaking on the sidelines of a World Trade Organization appeal hearing on the European Union's ban on the import and sale of seal products, Aglukkaq blasted opponents of hunting.
   
"Everybody, every family is concerned on the territories in Newfoundland, Labrador, Quebec and Nunavut," she told reporters on Monday.
   
"Sealers have the right to make a living like fishers or farmers with the resources of the region," she said.
   
All told, 6,000 people hunt seals commercially in Canada, chiefly in Newfoundland.
   
Canada and fellow seal hunter Norway want the WTO to overturn a ruling that it issued in November, in which it said that the EU ban imposed in 2010 did not breach global trade rules.
   
The WTO ruled that while there was merit in Norway and Canada's complaints, that was outweighed by the EU goal of addressing moral concerns about seal welfare.
   
"Pandora's box has been opened," said Aglukkaq.

"Tomorrow, perhaps there'll be a ban on lamb, or pork or poultry for moral reasons."

Canada and Norway appealed in January, and Monday saw the start of a three-day WTO hearing.

"We have lost a battle," Aglukkaq said, vowing to keep up the fight until the ban was voided.
   
Brussels argues that the EU public overwhelmingly favours the ban, and that scientific evidence backs claims that slaughter methods, such as using a club with a metal spike to stun seals before killing them, are cruel.

Movie actor and musician Rhys Ifans is the latest celebrity to back the ban, joining pinup and actress Pamela Anderson, who earlier spoke out in favour of the EU's position. 

"EU nations have made it clear that they want no part in the seal slaughter, which is merely an off-season cash grab for the Canadian fishing industry and accounts for less than one per cent of Newfoundland's economy," said Ifans in a statement issued on behalf of animal rights group PETA. 

He sent a letter to the WTO to back up the group's opposition to the hunt.

Norway and Canada have deployed counter-arguments from scientists, insisting that their seal-hunting methods are humane and no worse than those used in commercial deer-hunting, widespread in the EU.
   
The countries both kill tens of thousands of seals per year, and say hunting is an age-old method.
   
"We have a highly regulated industry, based on scientific data," said Aglukkaq.
   
"A healthy population of seals is not a large population of seals," she added.
   
Canada says the population of Greenland seals, the main species hunted, has tripled since the 1970s to reach 7.3 million.
   
The number of Grey seals has meanwhile risen 80-fold to 400,000.
   
While cute seal pups are often deployed by campaigners in their anti-hunting image war, the minister insisted that "we don't kill baby seals".
   
"The hunt is very humane, and sustainable. What is morally wrong is that interest groups have propagated false news and misinformation," she said, claiming that the goal was to fill campaigners' coffers with public donations.
   
Canada and Norway also say the ban is discriminatory because seal products from EU members Sweden and Finland enjoy unimpeded market access within the 28-nation bloc.
   
Canada's indigenous Inuits, who have traditionally hunted seal for centuries, are exempt from the ban but say it has ruined the market for their seal products.

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ECONOMIC GROWTH

WTO slashes global growth forecast for 2015

Sluggish economies and global conflicts are taking their toll on world commerce, the Geneva-based World Trade Organization said on Tuesday as it slashed its trade growth outlook for 2015.

WTO slashes global growth forecast for 2015
WTO headquarters in Geneva. Photo: WTO

"For trade growth it is important that you have certain elements present in the global economy (including) stability, predictability, and those things are not there right now," WTO chief Roberto Azevedo told reporters in Geneva.
   
With economies around the world still struggling to fully recover from the 2008 financial crisis, and with conflicts flaring in places like Ukraine and the Middle East, global trade is expanding far more slowly than anticipated a year ago.
   
The Ebola outbreak in west Africa, unusually harsh winter weather in the United States and collapsing world oil prices are also taking their toll, as are strong exchange rate fluctuations, Azevedo said.
   
"All of these things have effects, sometimes destabilising effects," Azevedo said.
   
On Tuesday, WTO said preliminary estimates showed global trade had expanded just 2.8 percent last year and was expected to swell only 3.3 percent this year.
   
A year ago, the WTO was singing a different tune.
   
Last April, it had forecast that trade would expand 4.6 percent in 2014 and 5.8 percent this year.
   
But it downgraded those predictions in September, to 3.1 percent and four percent respectively, before slashing them further on Tuesday.
   
"Trade growth has been disappointing in recent years due largely to prolonged sluggish growth in GDP following the financial crisis," Azevedo said.
   
"Looking forward, we expect trade to continue its slow recovery, but with economic growth still fragile and continued geopolitical tensions, this trend could easily be undermined," he warned.
   
Last year was the third consecutive year in which trade grew less than three percent, WTO said in a statement.
   
In fact, trade growth averaged just 2.4 percent between 2012 and 2014 — the slowest rate on record for a three-year period when trade was expanding.
   
Trade growth is expected to pick up in 2016 with an expansion of four percent, it said, warning though that going forward, trade growth looks set to remain well below the annual average of 5.1 percent seen since 1990.

Slow recovery

"We are cautiously forecasting that trade will continue its slow recovery," Azevedo told reporters.
   
WTO acknowledged though that "risks to the trade forecasts are mostly on the downside."
   
Trade is a key measure of the health of the global economy, which it both stimulates and reflects.
   
But Azevedo warned Tuesday that a systemic shift might be under way and that trade expansion would no longer far outstrip overall economic growth as it has largely done for decades.
   
"The rough two-to-one relationship that prevailed for many years between world trade growth and world GDP growth appears to have broken down," WTO said.
   
The organization noted that "the 2.8 percent rise in world trade in 2014 barely exceeded the increase in world GDP for the year, and forecasts for trade growth in 2015 and 2016 only surpass expected output growth by a small margin."
   
Azevedo said that the 2015 forecast was based on an assumption that global GDP would expand by nearly three percent, while the 2016 forecast depended on economic growth reaching over three percent.
   
The International Monetary Fund announced later Tuesday that it expects to see global growth at a tepid 3.5 percent this year, and 3.8 percent next year.
   
WTO meanwhile said developing countries were expected to see exports rise 3.6 percent this year, while their imports were set to jump 3.7 percent.
   
In developed countries, exports and imports were set to rise just 3.2 percent, it said.
   
Asia was expected to have the strongest export rise at five percent, followed by North America at 4.5 percent.
   
The weakest export growth this year is predicted to come in South America with just 0.2 percent.

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