WTO PANEL ISSUES MIXED RULING IN GEOGRAPHICAL INDICATIONS CASE
A WTO panel has upheld US and Australian claims that certain provisions of a 1992 EU framework regulation governing geographically-linked names of certain agricultural products violated WTO non-discrimination rules. According to the panel’s ruling, released to the public 15 March, the regulation erred by requiring other WTO members to offer levels of protection for geographical indications (GIs) similar to those required by the EU in order to receive protection for their trademarks in Europe (for a story on the panel’s interim report, see BRIDGES Weekly, 1 December 2004).
The ruling faulted EU rules that only allow foods produced in their region of origin to bear certain well-known names — for example, under the rules, only ham produced using traditional methods near the Italian city of Parma can be called Parma ham — for discriminating against non-EU trademark holders. The panel, however, rejected US and Australian claims that the 1992 regulation violated the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) by permitting the co-existence of GIs with pre-existing trademarks with similar-sounding names.
Acting US Trade Representative Peter Allgeier welcomed the panel’s ruling, referring to it as a "clear win" for US farmers and food processors. However, a US trade official is reported to have pointed out that the WTO panel had not supported the US on all its claims; for instance, the panel did not issue a clear ruling on the US claim that the EU regulation does not allow US firms the right to object to GIs protected by the EU. EU agriculture spokesman Michael Mann noted that the ruling would have an insignificant commercial impact on the US and Australia, as neither of them had ever submitted an application for GI protection under the 1992 regulation.
In its request for the establishment of a dispute settlement panel in August 2003, the US had claimed that the EU’s legislation on GIs — which protects the names of origin of more than 600 foodstuffs and agricultural products including fruits, cheeses, meats and fish — discriminated against non-EU products and among WTO Members by not according all trading partners the same advantages enjoyed by EU members.
ICTSD reporting; "Australia Applauds WTO Ruling On Regional Food Names," Associated Press/Sydney, 16 March 2005; "U.S., EU, Australia All Claim Victory In WTO Geographical Indications Dispute," WTO Reporter, 16 March 2005.
US SHIFTS POLICY ON IRAN ACCESSION
The US has announced that it would drop its longstanding opposition to Iran’s membership in the WTO if Iran renounced its nuclear ambitions. In an 11 March statement, the Bush administration announced that the US would join the EU in offering the Islamic Republic economic incentives including WTO membership if it agreed to permanently stop its production of enriched uranium, the fuel for nuclear power plants that could also be used to make nuclear weapons. The US has been blocking Iran’s requests for accession since 1996, in the face of increasing opposition from other WTO Members (see BRIDGES Weekly, 16 February 2005).
Speaking in Caracas, Venezuela, Iranian President Mohammad Khatami said that Iran would not renounce its "legitimate right" to develop "peaceful nuclear technology," though it was ready to "give more assurances" that it was not pursuing nuclear weapons. He also accused the US and the EU of double standards for opposing Iran’s nuclear programme.
Iran is building a nuclear reactor with support from Russia; it claims that the plant is for producing electricity for civilian use. However, it could be used to make material for nuclear weapons. The US has argued that Iran, the second-largest producer in the Organisation of Petroleum Exporting Countries (OPEC), does not need to develop other energy sources.
France, Germany, and the UK have been trying to convince Iran to stop enriching uranium. It agreed in November 2004 to do so in return for EU trade and economic concessions. The EU is Iran’s biggest trading partner. The US has banned most trade and investment relations with Iran since 1980.
"Iran Says It Won’t Give Up ‘Right’ to Nuclear Power," BLOOMBERG, 12 March 2005; "U.S. Drops Objection to Iranian Bid For World Trade Organization Entry," WTO REPORTER, 14 March 2005; "US Joins Europe in Offer of WTO Deal for Iran, Official Says," BLOOMBERG, 11 March 2005.