THE CANADIAN GOVERNMENT IS TAKING THE RECENT EUROPEAN UNION BAN on trading in seal products to the World Trade Organization, charging it is an unfair trade restriction. Canada will activate WTO's dispute settlement mechanism by requesting consultations, which could last 60 days and will appeal if an agreement is not reached. According to Trade Minister Stockwell Day, "it's very important when you're dealing with WTO matters that trade decisions are based on scientific evidence, not just on an emotional whim."

The EU ban was assailed by the Fur Institute of Canada and representatives of its seal trade as "irresponsible and counter-productive - a completely political move, but not unexpected." FIC executive director Rob Cahill described it as a reaction to a decades-long smear campaign against the seal trade by anti-fur organizations. Although it exempts products derived from traditional hunts by Canada's Inuit, as well as aboriginals in Greenland, Alaska and Russia and sold on a "not-for-profit" basis, trade members claim this is only a way for EU politicians to save face; that it will not help the Inuit who rely on the same markets as non-Inuit seal hunters.

IMPORTS OF FUR APPAREL INTO THE U.S. SHOWED ANOTHER SHARP DECLINE IN JUNE, continuing a long downtrend and reflecting lower average prices as well as retailers' conservative planning. Imports from all sources in the latest month amounted to $7.5 million, a drop of 23% from the same month last year. Although unit figures by garment type are not available, the fact that garment prices are down about 20% would indicate a slight dip in comparable units. The June total included $3.4 million in mink apparel, down 32%, and $4 million in other furs, off 13%.