THE NORTH AMERICAN FUR AND FASHION EXPOSITION IN MONTREAL not only exceeded trade expectations but also appeared to fare relatively better than the larger events overseas. Although economic conditions have persuaded retailers to proceed conservatively - and most vendors geared their operations accordingly - bookings at the abbreviated fair proved to be more lively than at last year's event, which was not the case elsewhere.

Although the sour economy had put a general damper on the recent fall-winter season, the late-December and January cold spell provided many retailers with an opportunity to move merchandise. With a double incentive - cold weather and sharp price discounts - they were able to sell not only current-season goods, but also could unload older stock they had acquired at lower cost, enabling them to get close to a normal markup on those garments. For many, it may not have been the most profitable of seasons, but they wound up with cleaner inventories than in recent years and in a good open-to-buy position.

At the same time, there was growing concern among wholesale suppliers who had come through a difficult season and were facing uncertain payment prospects. With just over 80 exhibitors taking booths, it was the smallest fair since its inception nearly three decades ago.

THE EUROPEAN PARLIAMENT LAST WEEK VOTED TO ENDORSE an EU-wide ban on seal products, sparking a threat from Canada to take action in the World Trade Organization. The move, supported by much of the European public and animal rights groups, was approved by 550 votes to 49, with 41 abstentions. It will be in effect for next year's seal hunt.

"If the EU imposes a trade ban on seal products," said Canadian Trade Minister Stockwell Day, "it must contain an exemption for any country, like Canada, that has strict guidelines in place for humane and sustainable sealing practices."