RESTRICTED
WORLD TRADE WT/DS/7/1
24May1995
ORGANIZATION(95-1377)
Original: French
EUROPEAN COMMUNITIES -TRADE DESCRIPTION OFSCALLOPS
Request forConsultations byCanada
Thefollowing communication dated 19May1995 fromthePermanent Mission ofCanada in
Geneva tothePermanent Delegation oftheEuropean Commission wasreceived bytheWTO Secretariat
on19May1995 andiscirculated inaccordance withArticle 4.4oftheDSU.
_______________
TheGovernment ofCanada requests consultations withtheEuropean Union concerning the
FrenchGovernmentOrderNORMERP9300051Aof22March1993andsubsequentamendmentslaying
down theofficial names andthetradedescription ofpectinidae (scallops). Thisrequest ismade pursuant
toArticle XXII oftheGeneral Agreement onTariffs andTrade 1994 (GATT 1994), Article 14.1of
theAgreement onTechnical Barriers toTrade, andArticle 4oftheUnderstanding onRules and
Procedures Governing theSettlement ofDisputes oftheWorld Trade Organization. TheGovernment
ofCanada hopes thattheseconsultations willleadtothefullrestoration ofitslong-standing competitive
position ontheFrench market forthepectinidae (scallops) called "noix decoquille Saint-Jacques" or
"noix deSaint-Jacques" inFrance.
Asalready mentioned, thisissue concerns theoriginal Order andtheamendments
NOR ECOC9300190A of29December 1993 andNOR ECOC9400066A of3October 1994, whose
effect istorestrict thetrade description thatmaybeusedinFrance forthemarketing oftheCanadian
scallops whose scientific name isPlacopecten magellanicus. Themostrecent amendment imposes use
oftheterm"pétoncle (Saint-Jacques)" (small scallop) until31December 1995; afterthatdate, only
theword "pétoncle" willbeauthorized. Therequirement thatCanadian scallops should bedescribed
as"pétoncles" hasalready greatly weakened thecompetitive position oftheCanadian product onthe
French market andhasdecreased thevolume andvalue ofCanadian exports. Theeventual prohibition
onusing thedescription "Saint-Jacques" willonlyworsen thesituation.
Thismeasure bytheFrench Government isunjustified because itiscontrary totraditional trade
practice andtheconsumer doesnotmake anydistinction between Placopecten magellanicus andother
scallops which canbecalled "noix deSaint-Jacques"; there isinfactnodifference between these
products interms ofcolour, size,texture, appearance anduse.
ContrarytotheEuropeanUnion'sobligationsunderArticleIIIofGATT1994,Canadianscallops
aregiven lessfavourable treatment thanthatgiven tothelikenational product. Moreover, contrary
toArticle IofGATT 1994, scallops from other member countries maybedescribed as"noix de
Saint-Jacques", whereas theCanadian product, which isalikeproduct, cannot besodescribed.
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Inaddition, themeasure isnotconsistent withArticle 2oftheAgreement onTechnical Barriers
toTrade.
Since 1993, Canada hasmade several sincere efforts tosettle theissue withtheFrench
Government. Subsequently, consultations withtheEUunder Article XXII.1 oftheGeneral Agreement
onTariffs andTrade 1947enabled atemporary solution tobeidentified, although Canada clearly stated
thatapermanent solution wasnecessary. Notonly hasnopermanent solution arisen but,in
October1994,theFrenchGovernmentintroducedanamendmentwhichannulledthetemporarysolution.
Theoriginal Order, aswellasthesubsequent amendments, cannot bejustified under the
Agreement Establishing theWorld Trade Organization (WTO Agreement); theynullify andimpair
therightsCanadaenjoysundertheWTOAgreement.Furthermore,thematerialeconomicinjurysuffered
byCanada asaresult oftheOrder, incomparison withitsreasonable expectations, alsoconstitutes
nullification andimpairment.
Inconclusion, theGovernment ofCanada requests consultations withaview toarrive ata
mutually satisfactory agreement.