RESTRICTED
WORLD TRADE WT/DS12/12
WT/DS14/11
G/L/94
G/TBT/D/9
ORGANIZATION 19July1996
(96-2858)
Original: English/
French/
Spanish
EUROPEAN COMMUNITIES -TRADE DESCRIPTIONS OFSCALLOPS
Notification ofMutually Agreed Solution
Thefollowing communication, dated 5July1996, fromthePermanent Missions ofPeruand
Chile andthePermanent Delegation oftheEuropean Commission, iscirculated attherequest ofthose
delegations.
_______________
Inaccordance withArticle 3.6oftheUnderstanding onRules andProcedures Governing the
Settlement ofDisputes, Peru, Chile andtheEuropean Communities hereby notify theDispute Settlement
Body (the"DSB") that,withrespect tothedispute "EC-Trade Description ofScallops -Request by
PeruandChile (WT/DS12 andWT/DS14)", theyhavereached amutually agreed settlement, asset
forth intheattached Exchange ofLetters andAnnex thereto.WT/DS12/12
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1. Letter from Ambassador Jean-Pierre Leng, Permanent Representative oftheEuropean
Commission toAmbassador Carmen LuzGuarda, Permanent Representative ofChile 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/DS12, 14)-Request byPeru
andChile" anddesiring toreach amutually satisfactory settlement oftheirdifferences regarding
thetradedescription ofscallops inFrance inamanner thatisconsistent withtheparties 'WTO
rights andobligations particularly inrespect ofscallops imported intotheFrench market,
Peru, Chile andtheEuropean Communities (the"EC") haveagreed asfollows:
1. TheWTO dispute "EC-Trade Description ofScallops (WT/DS12, 14)-Request byPeru
andChile" willberesolved onamutually satisfactory basis bytheadoption andimplementation of
anewFrench "Arrêté relatif auxdénominations devente admises desPectinidés" (hereinafter referred
toasthe"Order") inaccordance withthisagreement anditsannex.
2. TheOrder shallbepublished intheJournal Officiel delaRépublique Françaiseandshalltake
effect nolaterthan1July1996.
3. Peru, Chile andtheECnotethattheOrder wasnotified on26April 1996totheWorld Trade
Organization inaccordance withArticle 2.9oftheAgreement onTechnical Barriers toTrade.
4. Nothing shallbeundertaken thathasthedirect orindirect purpose oreffect ofundermining
oroffsetting theobject andpurpose ofthisagreement anditsannex andtheobligations undertaken
inthisagreement anditsannex.
5. Inaccordance withArticle 12(12) oftheWTO Understanding ontheSettlement ofDisputes
(the"DSU"), PeruandChile shall request thatthePanel suspend itsproceedings in"EC-Trade
Description ofScallops (WT/DS/12, 14)-Request byPeruandChile" untilthedateofentry intoforce
oftheOrder. Immediately following thisexchange ofletters, PeruandChile shallnotify therelevant
WTO bodies thatPeruandChile haverequested thePanel tosuspend itsproceedings.
6. Upon entry intoforce oftheOrder, PeruandChile shallnotify thePanel thattheParties have
settled thematter indispute, andshallrequest thePanel toissue areport thatisconfined toabrief
description ofthecaseandtoreporting thatasolution hasbeenreached in"EC-Trade Description
ofScallops (WT/DS12, 14)-Request byPeruandChile", inaccordance withArticle 12(7) ofthe
DSU. PeruandChile shallthennotify theDispute Settlement Body andthecommittee onTechnical
Barriers toTrade thatamutually agreed solution hasbeenreached, inaccordance withArticle 3(6)
andshallinclude inthenotification thisexchange ofletters anditsannex.
7. Ifprior tothedateofentry intoforce oftheOrder, theterms ofthisagreement were not
respected, PeruorChile mayadvise thePanel toreinstate thesuspended proceedings andtoissue its
Final Report totheParties. Where PeruorChile exercises thisright, itshallnotify theECwithout
delay, andshallnotify therelevant bodies oftheWTO assoonaspracticable.WT/DS12/12
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8. Thisagreement iswithout prejudice totherights andobligations ofPeru, Chile andtheEC
under theMarrakesh Agreement Establishing theWorld Trade Organization.
9. Theannex isanintegral partofthisagreement.
Thepresent Agreement isauthentic inEnglish, French andSpanish andwillenterintoforceuponreceipt
ofyourreply accepting itsterms assetoutabove. Iamalsosupplying herewith theannex referred
toabove (consisting ofaletter dated 9May1996 from theFrench Permanent Delegate totheWTO
tothePermanent Representative oftheEuropean Commission inGeneva accompanied bythedraft
French Order withthetitle"Avant-projet d'arrêté relatif auxdénominations devente admises des
Pectinidés").WT/DS12/12
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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/DS12/12
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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/DS12/12
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Article 6
TheDirector-General forCompetition, Consumption andtheRepression ofFraud, the
Director-General forFood andtheDirector ofFisheries andSeaFood Resources shallberesponsible,
eachwithinhisownsphereofcompetence,fortheimplementationofthisOrder,whichshallbepublished
intheJournal officiel delaRépublique française.
Done atParis, on...WT/DS12/12
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2. Letter from Ambassador Carmen LuzGuarda, Permanent Representative ofChile tothe
WTO, toAmbassador Jean-Pierre Leng, Permanent Representative oftheEuropean Commission,
dated 25June 1996.
Ihavethehonour toacknowledge receipt ofyourletter oftoday'sdatewithattached Annex
consisting ofaletter dated 9May1996 from theFrench Permanent Delegate totheWTO tothe
Permanent Representative oftheEuropean Commission inGeneva andthedraftFrench Order with
thetitle"Avant-projet d'arrêté relatif auxdénominations devente admises desPectinidés". Your letter
reads asfollows:
[Text oftheletter from Ambassador Leng above except forthelastunnumbered paragraph]
Ihavethehonour toinform youthattheGovernment ofChile isinagreement withthecontents
ofyourletter andtheAnnex (attached thereto), andtoconfirm thatyourletter andthisreply, which
areauthentic inEnglish, French andSpanish, shallconstitute anagreement between theGovernment
ofChile andtheEuropean Communities toenter intoforce onthedateofthisletter.
3. Letter from Ambassador Jean-Pierre Leng, Permanent Representative oftheEuropean
Commission totheWTO, toAmbassador JoséUrrutia, Permanent Representative ofPerutothe
WTO, dated 25June 1996.
[Thetextoftheletter isidentical tothatoftheletter senttoAmbassador Guarda.]
4. Letter from Ambassador JoséUrrutia, Permanent Representative ofPeru, totheWTO,
toAmbassador Jean-Pierre Leng, Permanent Representative oftheEuropean Commission tothe
WTO, dated 25June 1996.
Ihavethehonour toacknowledge receipt ofyourletter oftoday'sdatewithattached Annex
consisting ofaletter dated 9May1996 from theFrench Permanent Delegate totheWTO tothe
Permanent Representative oftheEuropean Commission inGeneva andthedraftFrench Order with
thetitle"Avant-projet d'arrêté relatif auxdénominations devente admises desPectinidés". Your letter
reads asfollows:
[Text oftheletter from Ambassador Leng above except forthelastunnumbered paragraph]
Ihavethehonour toinform youthattheGovernment ofPeruisinagreement withthecontents
ofyourletter andtheAnnex (attached thereto), andtoconfirm thatyourletter andthisreply, which
areauthentic inEnglish, French andSpanish, shallconstitute anagreement between theGovernment
ofPeruandtheEuropean Communities toenter intoforce onthedateofthisletter.