WORLD TRADE
ORGANIZATIONWT/DS231/18
29 July 2003
(03-4025)
Original:  English
EUROPEAN COMMUNITIES – TRADE DESCRIPTION OF SARDINES
Notification of Mutually Agreed Solution
The following communication, dated 25 July 2003, from the Permanent Delegation of the
European Commission and the Permanent Mission of Peru to the Chairman of the Dispute Settlement
Body, is circulated pursuant to Article 3.6 of the DSU.
__________
In accordance with Article 3.6 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes, Peru and the European Communities hereby notify the Dispute Settlement
Body that they have reached a mutually  agreed solution to the dispute WT/DS231, EC – Trade
Description of Sardines , as set out in the enclosed Understanding and its annex.
(signed) (signed)
For the European Communities For Peru
C. Trojan J. Voto BernalesWT/DS231/18
Page 2
Understanding
In the light of the recommendations and rulings of the Dispute Settlement Body of the World
Trade Organisation (the "WTO") in dispute WT/DS231, EC – Trade Description of Sardines , Peru
and the European Communities have reached the following understanding:
1. The WTO dispute WT/DS231, EC – Trade Description of Sardines , is resolved on a mutually
satisfactory basis following correspondence between DG Trade of the European Commission
and the Permanent Mission of Peru to the European Communities by the adoption and
implementation of the Commission Regulati on amending Council Regulation (EEC) 2136/89
that is annexed to this understanding (Commission Regulation (EC) 1181/2003 of2 July 2003).
2. Nothing shall be undertaken that has the direct or indirect purpose or effect of undermining or
offsetting the object and purpose of this understanding.
3. This understanding is without prejudice to the rights and obligations of Peru and the European
Communities under the Marrakesh Agreement Establishing the World Trade Organization.WT/DS231/18
Page 3
COMMISSION REGULATION  (EC) No 1181/2003
of 2 July 2003
amending Council Regulation (EEC)No 2136/89 laying down
common marketing standards for preserved sardines
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,Having regard to Council Regulation (EC)No 104/2000 of 17 December 1999 on the common
organisation of the markets in fishery and aquaculture products
1,and in particular Article 2(3)thereof,
Whereas:(1) Regulation (EC)No 104/2000 provides for the possibility of adopting common
marketing standards for fishery products in  the Community, particularly in order to
facilitate commerce based on fair competition.  These standards may, in particular,
cover labelling.
(2) Council Regulation (EEC)No 2136/89
2 lays down common marketing standards for
preserved sardines in the Community.
(3) The widening variety of supply of pres erved products marketed and presented in the
same way as preserved sardines in the Community makes it necessary to provide
consumers with sufficient information on the identity and the main characteristics of
the product.  It is therefore necessary to lay down common rules on trade descriptionsfor preserved products marketed and presented in the same way as preserved sardines
in the Community.
(4) The Codex Alimentarius  standard Codex STAN94 as well as the particular conditions
prevailing on the Community market should be taken into account to that purpose.
(5) In the interest of market transparency, fair competition and variety of choice, it is
necessary to specify that preserved sardine-type products should be prepared
exclusively from well defined species.
(6) It is necessary to take account of changes in the Combined Nomenclature codes for
preserved sardines.
(7) The term 'sardine' can only be part of the trade description of sardine-type products if
it is adequately qualified.  Trade descriptions based on geographic names alone are
not sufficiently distinctive.  In order to enable a proper identification of each sardine-
type product, thus avoiding confusion between different fish species, the scientificname of the species should be used as a qualifier term.
(8) The combination of the word 'sardines' with the common name of a sardine-type fish
species can only generate confusion as to the true nature of the product.  On the other
hand, common names not including the word 'sardines' may continue to be used forthe marketing of sardine-type products, in accordance with the law of the Member
State on marketing and in a manner not to mislead the consumers.
                                                     
1 OJ L 17, 21.1.2000, p. 22.
2 OJ L 212, 22.7.1989 p. 79.WT/DS231/18
Page 4
(9) The requirements laid down in this Regulation should be applied without prejudice to
Directive 2000/13/EC of the European Parliament and of the Council of 20 March
2000 on the approximation of the laws of the Member States relating to the labelling,
presentation and advertising of foodstuffs3.
(10) Regulation (EEC) No 2136/89 should therefore be amended accordingly.(11) The measures provided for in this Regulation are in accordance with the opinion of
the Management Committee for Fishery Products,
HAS ADOPTED THIS REGULATION:
Article 1
Regulation (EEC) No 2136/89 is amended as follows:
1. In the title the words 'laying down common marketing standards for preserved
sardines' are replaced by the following:  'laying down common marketing standards
for preserved sardines and trade descriptions for preserved sardines and sardine-type
products'.
2. Article 1 is replaced by the following:
'Article 1
This Regulation defines the standards governing the marketing of preserved sardines
and the trade descriptions for preserved sardines and preserved sardine-type products
marketed in the Community.'
3. The following Article 1a is inserted:
'Article 1a
For the purposes of this Regulation:
1. "preserved sardines" means products prepared from fish of the species
Sardina pilchardus ;
2. "preserved sardine-type products" means products marketed and presented in
the same way as preserved sardines and prepared from fish of the following
species:
(a) Sardinops melanosticus, S. neopilchardus, S. ocellatus, S. sagax,
S. caeryleus ;
(b) Sardinella aurita, S. brasiliensis, S. maderensis, S. longiceps,
S. gibbosa ;
(c) Clupea harengus ;
(d) Sprattus sprattus ;
                                                     
3 OJ L 109, 6.5.2000, p. 29.WT/DS231/18
Page 5
(e) Hyperlophus vittatus ;
(f) Nematalosa vlaminghi ;
(g) Etrumeus teres ;
(h) Ethmidium maculatum ;
(i) Engraulis anchoita, E. mordax, E. ringens ;
(j) Opisthonema oglinum .'
4. The first indent of Article 2 is replaced by the following:
'– they must be covered by CN codes 1604 13 11, 1604 13 19 and
ex 1604 20 50;'
5. The following Article 7a is inserted:
'Article 7a
1. Without prejudice to Directive 2000/13/EC of the European Parliament and
of the Council (*), preserved sardine-type products may be marketed in the
Community under a trade description consisting of the word 'sardines' joined together
with the scientific name of the species.
2. Wherever the trade description provided for in paragraph 1 is marked on the
container of a preserved sardine-type product, it shall be displayed in a clear and
distinct manner.
3. The scientific name shall include in all cases the generic and the specific
Latin names.
4. Only one species shall be marketed under a single trade description.
_______________
(*)OJ L 109,6.5.2000,p.29.'
Article 2
This Regulation shall enter into force on the day following its publication in the Official
Journal of the European Union .
It shall apply from 1 July 2003.WT/DS231/18
Page 6
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 2 July 2003.
For the Commission
Franz FISCHLER
Member of the Commission
__________