Sardines from Peru
Q. When is a sardine not a sardine?
A. When the European Community says it's not.
Funding legal support can have dramatic results. Peru was able to overturn an EU ruling which had denied its sardine exporters the right to label their goods as sardines.
Now you can buy their sardines from EU supermarket shelves - helping to develop the Peruvian economy and provide a livelihood for some of Latin America's poorest citizens.
Working with the lawyers from the Geneva-based Advisory Centre on WTO Law (ACWL) - charging just $100 an hour for legal advice - Peru successfully challenged the European Community ruling that 'sardines' only swam in European waters.
By ruling in favour of Peru and its sardines, the WTO signalled that, with the right technical assistance, smaller developing countries can meaningfully participate in its dispute settlement system.
Why does trade matter?
How Peru made its claim
When the European Union (EU) decided in 2001 that only Sardina pilchardus walbaum could be marketed as sardines – the species that swims in European waters, it meant that Sardinops sagax – its Pacific Ocean relative – could not be sold as 'sardines' in European shops.
This came as a shock to Peruvian sardine exporters and Peru was forced to discover, in 2001, whether the World Trade Organisation would over-rule powerful global trading blocs like the European Community in favour of a poorer and less influential country.
They sought legal advice at ACWL, an organisation created by a group of developing and developed countries including the UK, which provides free legal advice on WTO law. It also provides low-cost legal support to developing and transition countries when they take cases to dispute settlement in the WTO.
How did it challenge the EU? ACWL pointed out that 'sardines' from the Pacific Ocean are marketed as 'sardines' in most world markets. It showed from international law that the non-European species – such as Sardinops sagax – can be called 'sardines' if a modifying phrase designating a geographic area of origin is also used.
It made a strong case that Peru should be able to sell its produce in European Community markets as 'Pacific sardines'. It even produced evidence that this had been happening in Germany…until the dispute arose. More details about Peru's case (ACWL website)
It's no secret that developing countries can be at a disadvantage to richer countries when seeking to assert their rights through the WTO.
But the ACWL is dramatically challenging that unfair advantage and demonstrates the kind of partnership between developing and developed countries which can make the global trade architecture work fairly for all.
Key facts
- Since 2001 the ACWL has provided 120 legal opinions, free of charge, mainly to smaller, lower income countries and represented its members in 20 WTO dispute settlement proceedings each year since 2001
- The project is intended to contribute to International Trade Department's objective of promoting enhanced capacity of developing countries to exploit trade opportunities for poverty reduction
- The existing 5 year Memorandum of Understanding with ACWL was signed in September 2001 with a budget of £1,339,000
- DFID has have made 5 multi year payments (the last and final payment of £271,209 for calendar year 2005 was made in March 2005)
- In principle, DFID fully supports the draft decision in 2005 which includes agreement to extend the transitional 5 year period and the establishment of a task force on the future financing of the ACWL. We have also indicated our agreement to making an additional payment for the 2006 calendar year.