RESTRICTED
WORLD TRADE WT/DS7/12
G/L/93
ORGANIZATION G/TBT/D/8
19July1996
(96-2768)
Original: English/
French/
Spanish
EUROPEAN COMMUNITIES -TRADE DESCRIPTION OFSCALLOPS
Notification ofMutually Agreed Solution
Thefollowing communication, dated 5July1996, fromthePermanent Mission ofCanada and
thePermanent Delegation oftheEuropean Commission, iscirculated attherequest ofthose delegations.
_______________
Inaccordance withArticle 3.6oftheUnderstanding onRules andProcedures Governing the
Settlement ofDisputes, Canada andtheEuropean Communities hereby notify theDispute Settlement
Body that,withrespect tothedispute "EC-Trade Description ofScallops -Request byCanada
(WT/DS7)", theyhavereached amutually agreed settlement, assetforth intheattached Exchange
ofLetters andAnnex thereto.WT/DS7/12
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1. Letter from Ambassador Jean-Pierre Leng, Permanent Representative oftheEuropean
Commission totheWTO, toAmbassador John Weekes, Permanent Representative ofCanada
totheWTO, dated 25June 1996.
Iwould begrateful ifyouwould confirm thatyourGovernment agrees withthefollowing:
Inthelightoftheinterim findings andconclusions oftheWorld Trade Organization (the
"WTO") Panel in"EC-Trade Description ofScallops (WT/DS7) -Request byCanada" and
desiring toreach amutually satisfactory settlement oftheirdifferences regarding thetrade
description ofscallops inFrance inamanner thatisconsistent withtheParties 'WTO rights
andobligations particularly inrespect ofscallops imported intotheFrench market,
Canada andtheEuropean Communities (the"EC") haveagreed asfollows:
1. TheWTO dispute "EC-Trade Description ofScallops (WT/DS7) -Request byCanada
willberesolved onamutually satisfactory basisbytheadoption andimplementation ofanew
French "Arrêté relatif auxdénominations devente admises desPectinidés" (hereinafter referred
toasthe"Order") inaccordance withthisagreement anditsAnnex.
2. TheOrder shallbepublished intheJournal officiel delaRépublique françaiseand
shalltakeeffect nolaterthan1July1996.
3. Canada andtheECnotethattheOrder wasnotified on26April 1996 totheWorld
Trade Organization inaccordance withArticle 2.9oftheAgreement onTechnical Barriers
toTrade.
4. Nothing shall beundertaken thathasthedirect orindirect purpose oreffect of
undermining oroffsetting theobject andpurpose ofthisagreement anditsAnnex andthe
obligations undertaken inthisagreement anditsAnnex.
5. Inaccordance withArticle 12(12) oftheWTO Understanding ontheSettlement of
Disputes (the"DSU"), Canada shallrequest thatthePanel suspend itsproceedings in"EC-
Trade Description ofScallops (WT/DS7) -Request byCanada" untilthedateofentry into
force oftheOrder. Immediately following thisexchange ofletters, Canada shallnotify the
relevant WTO bodies thatCanada hasrequested thePanel tosuspend itsproceedings.
6. Upon entry intoforce oftheOrder, Canada shallnotify thePanel thattheParties have
settled thematter indispute, andshallrequest thePanel toissue areport thatisconfined to
abriefdescription ofthecaseandtoreporting thatasolution hasbeenreached in"EC-Trade
Description ofScallops (WT/DS7) -Request byCanada", inaccordance withArticle 12(7)
oftheDSU. Canada shallthennotify theDispute Settlement Body andtheCommittee on
Technical Barriers toTrade thatamutually agreed solution hasbeenreached, inaccordance
withArticle 3(6), andshallinclude inthenotification thisexchange ofletters anditsannex.
7. Ifprior tothedateofentry intoforce oftheOrder, theterms ofthisagreement were
notrespected, Canada mayadvise thePanel toreinstate thesuspended proceedings andtoissue
itsFinal Report totheparties. Where Canada exercises thisright, itshallnotify theECwithout
delay andshallnotify therelevant bodies oftheWTO assoonaspracticable.WT/DS7/12
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8. Thisagreement iswithout prejudice totherights andobligations ofCanada andthe
ECunder theMarrakesh Agreement Establishing theWorld Trade Organization.
9. TheAnnex isanintegral partofthisagreement.
Thepresent agreement isauthentic inEnglish, French andSpanish andwillenter intoforce
uponreceipt ofyourreply accepting itsterms assetoutabove. Iamalsosupplying herewith theAnnex
referred toabove (consisting ofaletter dated 9May1996 from theFrench Permanent Delegate to
theWTO tothePermanent Representative oftheEuropean Commission inGeneva accompanied by
thedraftFrench Order withthetitle"Avant-projet d'arrêté relatif auxdénominations devente admises
desPectinidés").WT/DS7/12
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ANNEX
Letter from theFrench Permanent Delegate totheWTO tothePermanent Representative ofthe
European Commission inGeneva, dated 9May1996.
Withreference totheproposed exchange ofletters between theparties tothedispute concerning
thetradedescription ofscallops, Ihavethehonour, ontheinstructions ofmyGovernment, toconfirm
thefollowing:
- Article 1oftheOrder, thedrafttextofwhich isenclosed, means that:
(a) Scallops mustbemarketed inFrance under thename "Saint Jacques" or"noix
decoquilles SaintJacques" or"noix deSaintJacques" oranyothercombination
ofthetermSaint Jacques consistent withthenature oftheproduct, followed
bythescientific name ofthespecies.
(b) Thecountry oforigin mustbeindicated inclearly visible lettering onthesame
sideofthelabelasthename, butnotnecessarily immediately adjacent thereto.
- Article 5means thattheOrder of22March 1993relating totheofficial French names
andpermitted tradedescriptions ofscallops (NOR :MER P9300051A),asamended
bytheOrder of29December 1993 (NOR: ECO C93001 90A)andbytheOrder of
3October 1994 (NOR: ECO C94000 66A),willberescinded assoonasthenew
Order ispublished.
- TheOrder willbepublished intheJournal officiel delaRépublique françaiseandwill
takeeffect nolaterthan1July1996.WT/DS7/12
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Preliminary Draft Order Relating totheOfficial Names andPermitted
Trade Descriptions ofScallops
TheMinistry oftheEconomy andtheMinistry ofAgriculture, Fisheries andFood,
Considering theConsumer Code;
Considering LawNo.75-1439 of31December 1975concerning theuseoftheFrench language;
Considering Decree 55-241 of10February 1955implementing theLawof1August 1905with
respect totrade inpreserved andsemi-preserved goods, andinparticular itsArticle 8;
Considering Decree No.64-949 of9September 1964implementing theLawof1August 1905
withrespect todeep-frozen products, andinparticular itsArticle 7;
Considering Decree No.84-1147 of7December 1984implementing theLawof1August 1905
onfraud andfalsification relating toproducts andservices withrespect tothelabelling andpresentation
offoodstuffs;
Order
Article 1
ShellfishofthefamilyPectinidae,whenpresentedinthepreserved,semi-preservedordeep-frozen
state, mustbemarketed under thedescription "Saint-Jacques" followed bythescientific name ofthe
species andthecountry oforigin, orunder thedescription "Saint-Jacques" followed onlybythescientific
name ofthespecies when thecountry oforigin isalready indicated inclearly visible lettering onthe
same sideofthelabelasthedescription.
Article 2
Theterms mentioned inArticle 1maybereplaced bythedescription "pétoncle" inthecase
ofPectinidae belonging tothespecies Chlamys varia orChlamys opercularis orbytheterm"vanneau"
inthecaseofthespecies Chlamys opercularis .
Article 3
ThisOrder shallenter intoeffect from itsdateofpublication.
Article 4
However, packaging andlabels thatcomply withtheprovisions oftheprevious regulations
maycontinue tobeusedduring aperiod ofthree months from thedateofpublication ofthisOrder.
Article 5
Theamended Order of22March 1993 relating totheofficial names andpermitted trade
descriptions ofscallops isrescinded.WT/DS7/12
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Article 6
TheDirector-General forCompetition, Consumption andtheRepression ofFraud, theDirector-
General forFood andtheDirector ofFisheries andSeaFood Resources shallberesponsible, each
within hisownsphere ofcompetence, fortheimplementation ofthisOrder, which shallbepublished
intheJournal officiel delaRepublique française.
Done atParis, on...
2. Letter from Ambassador JohnWeekes, Permanent Representative ofCanada totheWTO,
toAmbassador Jean-Pierre Leng, Permanent Representative oftheEuropean Commission tothe
WTO, dated 25June 1996.
Ihavethehonour toacknowledge receipt ofyourletter oftoday'sdateandtheaccompanying
Annex consisting ofaletter dated 9May1996 from theFrench Permanent Delegate totheWTO to
thePermanent Representative oftheEuropean Commission inGeneva andofthedraftFrench Order
withthetitle"Avant-projet d'arrêté relatif auxdénominations devente admises desPectinidés". The
textofyourletter reads asfollows:
...
[Text ofletter fromAmbassador Leng toAmbassador Weekes except forthelastunnumbered
paragraph]
Ihavethehonour toinform youthatthecontents ofyourletter andoftheaccompanying Annex
areacceptable totheGovernment ofCanada andtoconfirm thatyourletter andthisreply, which are
authentic inFrench, English andSpanish, willconstitute anagreement between theEuropean
Communities andtheGovernment ofCanada which willenter intoeffect asoftoday.