EUROPEAN COMMUNITIES - TRADE DESCRIPTION OF SCALLOPS
Document: Notification of Mutually Agreed Solution
Date: 19 July 1996
Document codes: WT/DS7/12; G/L/93; G/TBT/D/8
Complainant: Canada
Respondent: EU
Third parties: Australia, Chile, Iceland, Japan, Peru, U.S.
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. 2  Technical Barriers to Trade (TBT)Art. I, III  GATT 1994

French/
Spanish
EUROPEAN COMMUNITIES - TRADE DESCRIPTION OF SCALLOPS
Notification of Mutually Agreed Solution
The following communication, dated 5 July 1996, from the Permanent Mission of Canada and
the Permanent Delegation of the European Commission, is circulated at the requestof those delegations.
In accordance with Article 3.6 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes, Canada and the European Communities hereby notify the Dispute Settlement
Body that, with respect to the dispute "EC - Trade Description of Scallops - Request by Canada
(WT/DS7)", they have reached a mutually agreed settlement, as set forth in the attached Exchange
of Letters and Annex thereto.

1. Letter from Ambassador Jean-Pierre Leng, Permanent Representative of the European
Commission to the WTO, to Ambassador John Weekes, Permanent Representative of Canada
to the WTO, dated 25 June 1996.
I would be grateful if you would confirm that your Government agrees with the following:
In the light of the interim findings and conclusions of the (the
"WTO") Panel in "EC - Trade Description of Scallops (WT/DS7) - Request by Canada" and
desiring to reach a mutually satisfactory settlement of their differences regarding the trade
description of scallops in France in a manner that is consistent with the Parties' WTO rights
and obligations particularly in respect of scallops imported into the French market,
Canada and the European Communities (the "EC") have agreed as follows:
1. The WTO dispute "EC - Trade Description of Scallops (WT/DS7) - Request by Canada
will be resolved on a mutually satisfactory basis by the adoption and implementation of a new
French "Arrêté relatif aux dénominations de vente admises des Pectinidés" (hereinafter referred
to as the "Order") in accordance with this agreement and its Annex.
2. The Order shall be published in the Journal officiel de la République française and
shall take effect no later than 1 July 1996.
3. Canada and the EC note that the Order was notified on 26 April 1996 to the World
Trade Organization in accordance with Article 2.9 of the Agreement on Technical Barriers
to Trade.
4. Nothing shall be undertaken that has the direct or indirect purpose or effect of
undermining or offsetting the object and purpose of this agreement and its Annex and the
obligations undertaken in this agreement and its Annex.
5. In accordance with Article 12(12) of the WTO Understanding on the Settlement of
Disputes (the "DSU"), Canada shall request that the Panel suspend its proceedings in "EC -
Trade Description of Scallops (WT/DS7) - Request by Canada" until the date of entry into
force of the Order. Immediately following this exchange of letters, Canada shall notify the
relevant WTO bodies that Canada has requested the Panel to suspend its proceedings.
6. Upon entry into force of the Order, Canada shall notify the Panel that the Parties have
settled the matter in dispute, and shall request the Panel to issue a report that is confined to
a brief description of the case and to reporting that a solution has been reached in "EC - Trade
Description of Scallops (WT/DS7) - Request by Canada", in accordance with Article 12(7)
of the DSU. Canada shall then notify the Dispute Settlement Body and the Committee on
Technical Barriers to Trade that a mutually agreed solution has been reached, in accordance
with Article 3(6), and shall include in the notification this exchange of letters and its annex.
7. If prior to the date of entry into force of the Order, the terms of this agreement were
not respected, Canada may advise the Panel to reinstate the suspended proceedings and to issue
its Final Report to the parties. Where Canada exercises this right, it shall notify the EC without
delay and shall notify the relevant bodies of the WTO as soon as practicable.

8. This agreement is without prejudice to the rights and obligations of Canada and the
EC under the Marrakesh Agreement Establishing the World Trade Organization.
9. The Annex is an integral part of this agreement.
The present agreement is authentic in English, French and Spanish and will enter into force
upon receipt of your reply accepting its terms as set out above. I am also supplying herewith the Annex
referred to above (consisting of a letter dated 9 May 1996 from the French Permanent Delegate to
the WTO to the Permanent Representative of the European Commission in Geneva accompanied by
the draft French Order with the title "Avant-projet d'arrêté relatif aux dénominations de vente admises
des Pectinidés").

ANNEX
Letter from the French Permanent Delegate to the WTO to the Permanent Representative of the
European Commission in Geneva, dated 9 May 1996.
With reference to the proposed exchange of letters between the parties to the dispute concerning
the trade description of scallops, I have the honour, on the instructions of my Government, to confirm
the following:
- Article 1 of the Order, the draft text of which is enclosed, means that:
(a) Scallops must be marketed in France under the name "Saint Jacques" or "noix
de coquillesSaint Jacques" or "noixde Saint Jacques" orany othercombination
of the term Saint Jacques consistent with the nature of the product, followed
by the scientific name of the species.
(b) The country of origin must be indicated in clearly visible lettering on the same
side of the label as the name, but not necessarily immediately adjacent thereto.
- Article 5 means that the Order of 22 March 1993 relating to the official French names
and permitted trade descriptions of scallops (NOR : MER P9 3000 51 A), as amended
by the Order of 29 December 1993 (NOR: ECO C9 3001 90 A) and by the Order of
3 October 1994 (NOR: ECO C9 4000 66 A), will be rescinded as soon as the new
Order is published.
- The Order will be published in the Journal officiel de la République française and will
take effect no later than 1 July 1996.

Preliminary Draft Order Relating to the Official Names and Permitted
Trade Descriptions of Scallops
The Ministry of the Economy and the Ministry of Agriculture, Fisheries and Food,
Considering the Consumer Code;
Considering Law No. 75-1439of 31December 1975 concerningthe use of the French language;
Considering Decree 55-241 of 10 February 1955 implementing the Law of 1 August 1905 with
respect to trade in preserved and semi-preserved goods, and in particular its Article 8;
Considering Decree No. 64-949 of 9 September 1964 implementing the Law of 1 August 1905
with respect to deep-frozen products, and in particular its Article 7;
Considering Decree No. 84-1147 of 7 December 1984 implementing the Law of 1 August 1905
on fraud and falsification relating to products and services with respect to the labelling and presentation
of foodstuffs;
Order
Article 1
Shellfish of the family Pectinidae, when presented in the preserved, semi-preserved or deep-frozen
state, must be marketed under the description "Saint-Jacques" followed by the scientific name of the
species and the countryof origin,orunderthe description"Saint-Jacques" followedonlybythe scientific
name of the species when the country of origin is already indicated in clearly visible lettering on the
same side of the label as the description.
Article 2
The terms mentioned in Article 1 may be replaced by the description "pétoncle" in the case
of Pectinidae belonging to the species Chlamys varia or Chlamys opercularis or by the term "vanneau"
in the case of the species Chlamys opercularis.
Article 3
This Order shall enter into effect from its date of publication.
Article 4
However, packaging and labels that comply with the provisions of the previous regulations
may continue to be used during a period of three months from the date of publication of this Order.
Article 5
The amended Order of 22 March 1993 relating to the official names and permitted trade
descriptions of scallops is rescinded.

Article 6
TheDirector-Generalfor Competition,Consumptionand theRepressionof Fraud,theDirector-
General for Food and the Director of Fisheries and Sea Food Resources shall be responsible, each
within his own sphere of competence, for the implementation of this Order, which shall be published
in the Journal officiel de la Republique française.
Done at Paris, on ...
2. Letter from Ambassador John Weekes, Permanent Representative of Canada to the WTO,
to Ambassador Jean-Pierre Leng, Permanent Representative of the European Commission to the
WTO, dated 25 June 1996.
I have the honour to acknowledge receipt of your letter of today's date and the accompanying
Annex consisting of a letter dated 9 May 1996 from the French Permanent Delegate to the WTO to
the Permanent Representative of the European Commission in Geneva and of the draft French Order
with the title "Avant-projet d'arrêté relatif aux dénominations de vente admises des Pectinidés". The
text of your letter reads as follows:

[Text of letter from Ambassador Leng to Ambassador Weekes except for the last unnumbered
paragraph]
I have the honour to inform you that the contents of your letter and of the accompanying Annex
are acceptable to the Government of Canada and to confirm that your letter and this reply, which are
authentic in French, English and Spanish, will constitute an agreement between the European
Communities and the Government of Canada which will enter into effect as of today.