NEWS RELEASES
CANADA AND EUROPEAN UNION REACH AGREEMENT ON SCALLOP LABELLING
June 27, 1996 No. 119
CANADA AND EUROPEAN UNION REACH AGREEMENT ON SCALLOP
LABELLING
The Honourable Art Eggleton, Minister for International Trade and the Honourable
Fred Mifflin, Minister of Fisheries and Oceans, announced on June 25 that Canada
and the European Union have reached an agreement concerning the labelling of
Canadian scallops exported to France.
"This agreement marks the successful outcome of Canada's first case under the new
World Trade Organization (WTO) trade dispute settlement system," Mr. Eggleton
said. "It should permit Canadian scallops to compete equally with other imported
and domestic scallops in the lucrative French market."
Since March 1993, France insisted that Canadian scallops, along with most other
imported scallops be labelled as "pétoncles." Exports of Canadian scallops to
France prior to the changes in labelling exceeded $10 million per year, but
reached less than $3.5 million in 1995. The agreement reached between Canada and
the European Union, which acts on behalf of France on international trade matters,
ensures that Canadian scallops can now be labelled as "Saint-Jacques," along with
the species name.
"France has always been our second-largest export market for scallops after the
United States," Mr. Mifflin said. "This agreement on labelling will mean
additional income for fishers in Atlantic Canada."
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A backgrounder is attached.
For further information, media representatives may contact:
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
Backgrounder
CANADIAN SCALLOP LABELLING
In March 1993, the French government introduced a new labelling regulation that
permitted only certain scallops to be sold as "Noix de Coquille Saint-Jacques."
Canadian scallops could be sold only under the label "pétoncles," which has an
inferior image in France and a market price of 20-25 per cent less than that of
"Noix de Coquille Saint-Jacques." Canadian scallops have been sold in France
since approximately 1945 under the names "Noix de Coquille Saint-Jacques" and
"Noix de Saint-Jacques." Exports prior to the changes in labelling exceeded $10
million per year, but reached less than $3.5 million in 1995.
Following unsuccessful efforts to resolve the issue bilaterally, Canada requested
GATT Article XXII:1 consultations with the European Union (EU) in August 1993.
Several changes have been made to the regulation since those consultations, which
have led to substantial confusion in the French marketplace and added costs for
Canadian exporters as a result of smaller shipment and new packaging requirements.
The final version permitted only "pétoncles" to be used on the label.
In June 1995, in an effort to resolve this issue, Canada requested WTO
consultations with the European Union, which acts on behalf of France in the World
Trade Organization (WTO). Other exporting countries, i.e. the United States,
Chile, Peru, Japan and Iceland, joined Canada in the consultations. No resolution
was reached and the WTO Dispute Settlement Body approved the establishment of a
panel on July 19, 1995. The panel held meetings in October and December 1995, and
February 1996. Chile and Peru also requested a panel to hear the same dispute.
Although two distinct panels were established, the three panelists were the same
in both cases and the interim reports were issued at the same time.
Since then, Canada and the EU have continued their discussions leading to the
agreement announced today. The Canada-EU agreement recognizes the legitimacy of
the Canadian position on this issue. As a result of today's agreement, Canadian
scallops, as well as all others sold in France, can now be labelled "Saint-Jacques," along with the species name. Two Canadian scallop species are affected
by this agreement, Placopecten magellanicus and Chlamys icelandicus, both of which
orignate from Canada's east coast. This should resolve Canada's access problem
and permit Canadian scallops to compete equally with other imported and domestic
scallops in the French market.
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