RESTRICTED
WORLD TRADE WT/DS14/5
15September 1995
ORGANIZATION(95-2656)
Original: Spanish
EUROPEAN COMMUNITIES -TRADE DESCRIPTION OFSCALLOPS
Request fortheEstablishment ofaPanel
Thefollowing communication, dated 13September 1995, fromthePermanent Mission ofChile
totheChairman oftheDispute Settlement Body iscirculated attherequest ofthatDelegation.
_______________
Asyouknow,on24July1995thePermanentMissionofChileaddressedanotetothePermanent
Representative oftheEuropean Union totheWTO requesting consultations under Article XXII:1 of
GATT 1994. TheEuropean Union replied favourably tothisrequest forconsultations, which were
conducted on10August last.
Thepurpose oftheconsultations wastofindasolution totheproblem arising outofthetrade
description ofChilean scallops ontheFrench market, which isnullifying andimpairing benefits accruing
toChile under theWTO, andtoassess theirconsistency withtheprovisions oftheAgreement on
Technical Barriers toTrade (Articles 2:1and2:2)andArticles IandIIIofGATT 1994.
Before requesting consultations, Chile made many representations toboththeFrench andthe
Community authorities inaneffort tosettle theissue without having toresort tothemechanisms of
themultilateral trading system. Furthermore, given itssubstantial interest intheexport ofscallops
toFrance, Chile associated itselfwiththeconsultations requested byCanada under Article XXII, which
tookplace on19June1995.
Unfortunately, sofarneither thesteps andinitiatives taken bytheGovernment ofChile nor
theconsultations heldhave produced satisfactory results thatwould enable molluscs ofthegenus
Pectinidae, towhich theChilean mollusc Agropecten Purpuratus belongs, tobemarketed inFrance
without restrictions.
TheGovernment ofChile willcontinue searching foramutually satisfactory solution tothe
matter within theterms andtime-limits provided forintheconsultation process oftheUnderstanding
onRules andProcedures Governing theSettlement ofDisputes.
Nevertheless, ifafter60dayscounting from24July,dateofreceipt ofourrequest bytheEC,
theissuearising outofthetradedescription ofChilean scallops hasnotbeenresolved, theGovernment
ofChile reserves therighttorequest, attheforthcoming meeting oftheDispute Settlement Body to
beheldon27September, theestablishment ofapanel pursuant toArticle XXIII ofGATT 1994,
Article 14oftheAgreement onTechnical Barriers toTrade andArticles 4and6oftheUnderstanding.
Should thishappen, Chile willrequest thatthepanel beestablished inaccordance withtheterms of
theattached document.WT/DS14/5
Page2
Fortheabove reasons, Iaskyoutoinclude intheagenda fortheDispute Settlement Body's
meeting scheduled for27September 1995therequest oftheGovernment ofChile fortheestablishment
ofapanel.
Lastly, theGovernment ofChile wishes tostress thatitwillpursue itsefforts toreach amutually
satisfactory solution tothisdispute before 24September next, when theconsultation period willend,
soastoobviate theneedfortherequest fortheestablishment ofapanel.WT/DS14/5
Page3
ANNEX
Ihavethehonour torefertothetrade description ofmolluscs ofthegenus Pectinidae.
On24July1995, theGovernment ofChile requested theEuropean Union toholdconsultations
concerning theFrench Government Order (NOR MERP9300051 A)of22March 1993andamendments
thereto relating totheofficial names andpermitted tradedescriptions ofmolluscs ofthegenus Pectinidae
(scallops). Inaccordance withArticle 4oftheUnderstanding onRules andProcedures Governing
theSettlement ofDisputes (DSU), thatrequest wascirculated toMembers oftheWorld Trade
Organization on31July1995 (WT/DS14/1).
TheGovernment ofChile requested consultations inorder tofindasolution tothetrade
descriptionproblemcausedbytheabove-mentionedOrder,whichimposestheuseofthetradedescription
"pétoncle" forthepectinid mollusc ofChilean origin asfrom 1January 1996. Thistermentails a
tradeinjury asontheFrench market itisassociated withaproduct oflower quality andpricecompared
withthetraditional description of"Coquilles St.Jacques" or"Noix deSt.Jacques" under which the
Chilean product wassoldinthatmarket.
Chile andtheEuropean Union heldconsultations inGeneva on10August 1995 withaview
toreaching asatisfactory resolution ofthematter. Previously, Chile hadassociated itself withthe
consultations heldbyCanada withtheEuropean Union on19June1995 onthissame matter.
Unfortunately, theconsultations failed tosettle thedispute andfurther consultations arenot
likely tobeproductive. Inaccordance withArticle XXIII ofGATT 1994, Article 14oftheAgreement
onTechnical Barriers toTrade andArticles 4and6oftheUnderstanding onRules andProcedures
Governing theSettlement ofDisputes (DSU), Chile hereby requests thatapanel beestablished atthe
nextmeeting oftheDispute Settlement Body scheduled for27September 1995.
Chile requests thatthepanel consider andfindthattheOrder andthesubsequent amendments
thereto are:
(a) inconsistent withArticles 2and12oftheAgreement onTechnical Barriers toTrade;
(b) inconsistent withArticle IIIofGATT 1994;
(c) inconsistent withArticle IofGATT 1994; and
(d) nullifying andimpairing benefits accruing toChile pursuant totheWTO.
Chile requests thatthepanel beestablished withthestandard terms ofreference assetoutin
Article 7oftheDSU. Chile further requests thatthisrequest fortheestablishment ofapanel beincluded
intheagenda ofthemeeting oftheDispute Settlement Body scheduled for27September 1995.
AcopyofthisnotewillbesenttotheWTO forinclusion oftheitemintheagenda ofthenext
meeting oftheDSBandcirculation toallmembers.
Accept, Sir,therenewed assurances ofmyhighest consideration.