2003/502/EC: Commission Decision of 23 June 2003 suspending the examination procedure concerning an obstacle to trade consisting of trade practices maintained by Canada in relation to certain geographical indications for wines
Date: 2003-06-23
Institutions: European Commission
Subjects: Canada, designation of origin, import, product designation, restriction on competition, trade restriction, wine

9.7.2003

EN

Official Journal of the European Union

L 170/29

COMMISSION DECISION

of 23 June 2003

suspending the examination procedure concerning an obstacle to trade consisting of trade prac-
tices maintained by Canada in relation to certain geographical indications for wines

(2003/502/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 3286/94 of 22
December 1994 laying down Community procedures in the
field of the common commercial policy in order to ensure the
exercise of the Community's rights under international trade
rules, in particular those established under the auspices of the
World Trade Organisation (1), as amended by Regulation (EC)
No 356/95 (2), and in particular Articles 11 and 14 thereof,

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

On 6 December 2001 CIVB (Conseil Interprofessionel
lodged a complaint pursuant to
du Vin de Bordeaux)
Article 4 of Council Regulation (EC) No 3286/94 (here-
inafter the Regulation).

CIVB claimed that Community sales of Bordeaux and
Médoc in Canada are hindered by a number of obstacles
to trade within the meaning of Article 2(1) of the Regu-
lation, i.e. ‘a practice adopted or maintained by a third
country and in respect of which international trade rules
establish a right of action’.

The alleged obstacle results from the C-57 Amendment
to the Canadian Trademarks act, which deprives the
geographical indications Bordeaux and Médoc of a stan-
dard protection in compliance with the protection
requirements laid down by the WTO Agreement on
Trade Related Aspects of
Intellectual Property Rights
(TRIPS) for geographical indications for wines.

The Commission decided that the complaint contained
sufficient evidence to justify the initiation of an examina-
tion procedure. A corresponding notice was published in
the Official Journal of the European Communities (3).

The investigation confirmed the complainant's
legal
claim that the C-57 Amendment to the Canadian Trade-
Marks Act violates Articles 23.1 and 2 as well as Article
24.3 (the so-called standstill clause) of TRIPS and that
such infringements cannot be justified on the basis of
the exception under Article 24.6 of TRIPS.

procedure

examination

that
The
Bordeaux wines have a considerable market share in
Canada, which is strictly connected with the Bordeaux/
Médoc product's name.
If such an asset is not duly
protected, holders of the ‘Bordeaux’ and ‘Médoc’ geogra-

confirmed

also

indications could see their market position in
phical
Canada seriously curtailed. This prejudice could even-
tually result in adverse trade effects for the producers of
‘Bordeaux’ and ‘Médoc’ wine.
It can therefore be
concluded that the C-57 Amendment threatens to cause
adverse trade effects to the complainant, within the
meaning of Article 2(4) and 10(4) of the Regulation.

On 12 February 2003, the Advisory Committee estab-
lished by the Regulation considered the final report on
the examination procedure.

On 24 April 2003, the Commission initialled a bilateral
agreement with Canada on trade in wine and spirits,
which once it has entered into force, would contribute
to the protection of Community interests in this field. In
particular, this agreement would provide for the defini-
tive elimination of
in
Canada, including ‘Bordeaux’, ‘Médoc’ and ‘Medoc’ by the
entry into force of the agreement.

the names listed as ‘generic’

However, the procedure cannot be terminated until the
denominations ‘Bordeaux’, ‘Médoc’ and ‘Medoc’ are effec-
tively eliminated from the list of generics of the C-57
Amendment.

The Commission considers therefore that it is appro-
priate to suspend the procedure.

The measures provided for in this decision are in accor-
dance with the opinion of the Advisory Committee,

(7)

(8)

(9)

(10)

(11)

HAS DECIDED AS FOLLOWS:

Sole Article

The examination procedure concerning obstacles to trade,
consisting of trade practices maintained by Canada in relation
to certain geographical
is hereby
indications
suspended.

for wines,

Done at Brussels, 23 June 2003.

For the Commission

Pascal LAMY

Member of the Commission

(1) OJ L 349, 31.12.1994, p. 71.
(2) OJ L 41, 23.2.1995, p. 3.
(3) OJ C 124, 25.5.2002, p. 6.