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Agreement Between Canada and the European Community on Trade in Wines and Spirit Drinks

E104976

The European Community, hereafter referred to as "the Community", and Canada, hereafter jointly referred to as "the Contracting Parties",

RECOGNISING that the Contracting Parties desire to establish closer links in the wine and spirits sector,

DESIROUS of creating more favourable conditions for the harmonious development of trade in wine and spirit drinks on the basis of equality and mutual benefit,

HAVE AGREED AS FOLLOWS:

Title I

Initial Provisions

Article 1

Objectives

  1. The Contracting Parties shall, on the basis of non-discrimination and reciprocity, facilitate and promote trade in wines and spirit drinks produced in Canada and the Community, on the conditions provided for in this Agreement.
  2. The Contracting Parties shall take all reasonable measures to ensure that the obligations laid down in this Agreement are fulfilled and that the objectives set out in this Agreement are attained.

Article 2

Scope and coverage

This Agreement applies to wines falling under heading 22.04, and to spirit drinks falling under heading 22.08, of the International Convention on the Harmonised Commodity, Description and Coding System ("Harmonised System"), done at Brussels on 14 June 1983, which are produced in conformity with the laws and regulations governing the production of wines and spirit drinks in the territory of a Contracting Party.

Article 3

Definitions

  1. For the purposes of this Agreement, unless otherwise provided:
    • "labelling" shall mean any tag, brand, mark, pictorial or other descriptive matter, written, printed, stencilled, marked, embossed or impressed on, or attached to, a container of wine or a spirit drink;
    • "WTO Agreement" refers to the Marrakesh Agreement Establishing the World Trade Organisation;
    • "TRIPS Agreement" refers to the Agreement on Trade-Related Aspects of Intellectual Property Rights, which is contained in Annex 1C to the WTO Agreement;
    • "1989 Agreement" refers to the Agreement between the European Economic Community and Canada concerning trade and commerce in alcoholic beverages concluded on 28 February 1989.
  2. In this Agreement, "originating", when used in relation to the name of the Community or one of its Member States or Canada, indicates that the wine or spirit drink is produced within the jurisdiction concerned and, in the case of wine, that it is produced solely from grapes harvested in the territory of that jurisdiction.

Article 4

General import and marketing rules

Unless otherwise provided for in this Agreement, importation and marketing shall be conducted in compliance with the laws and regulations applying in the territory of the Contracting Party of importation.

Title II

Oenological Practices and Processes and Product Specifications

Article 5

Mutual recognition of oenological practices and processes and product specifications

  1. The Community shall authorise the importation and marketing in its territory of wines originating in Canada produced in accordance with:
    • the oenological practices and processes listed in Annex I(A), and
    • the product specifications provided for in Annex II(A).
  2. Canada shall authorise the importation and marketing in its territory of wines originating in the Community and produced in accordance with:
    • the oenological practices and processes listed in Annex I(B), and
    • the product specifications provided for in Annex II(B).
  3. The Contracting Parties recognise that the oenological practices and processes listed in Annex I meet the requirements set out in Article 6(2).

Article 6

New practices or modifications of practices

  1. Each Contracting Party shall endeavour to inform the other Contracting Party under the procedures set out in Title VII, at the earliest reasonable opportunity, of developments which could lead, in relation to wine produced in its territory, to the authorisation of an oenological practice, process or modification not listed in the relevant paragraph of Annex I, with a view to agreeing on a common approach.
  2. Without prejudice to Article 35, new oenological practices, processes or modifications, used for the production of wine shall meet the following requirements:
    1. protect consumers from false or misleading practices which could create an erroneous impression about the product's character, composition, quality or value; and
    2. meet the standard of good oenological practice. In particular the oenological practice, process or modification should:
      • not be prohibited in the laws and regulations of the originating country,
      • protect the authenticity of the product by safeguarding the concept that the typical features of the wine arise from its origin in the grapes harvested and also takes into account the region of cultivation, and in particular, climatic, geological and other production conditions,
      • be based on a reasonable technological or practical need to enhance the keeping qualities, stability or consumer acceptance of the wine, and
      • ensure that the processes or additions are limited to the minimum necessary to achieve the desired effect.
  3. A Contracting Party shall notify within 90 days the other Contracting Party where, in relation to wine produced in its territory, it has authorised an oenological practice, process or modification not listed in the relevant paragraph of Annex I.
  4. The notification shall contain a description of the oenological practice, process or modification not listed in the relevant paragraph of Annex I.
  5. The notifying Contracting Party shall, if requested by the other Contracting Party, provide a technical dossier justifying the authorisation of the oenological practice, process or modification, in particular with regard to the requirements set out in paragraph 2.

Article 7

Provisional authorisation

Without prejudice to measures foreseen by Article 35, wines produced with the oenological practice, process or modification notified by a Contracting Party under Article 6(3) shall be provisionally authorised for import and marketing in the territory of the other Contracting Party.

Article 8

Objection procedure

  1. Within a period of ten months from the notification by a Contracting Party under Article 6(3), the other Contracting Party may object in writing to the notified oenological practice, process or modification on the ground that it does not meet the requirements of Article 6(2)(a) and (b). Either Contracting Party may seek consultations provided for in Article 29. Should such consultations fail to resolve the matter, either Contracting Party may notify, in writing, the other Contracting Party of its decision to refer the issue to arbitration under Article 31.
  2. A Contracting Party may not oppose the acceptability of a notified oenological practice, process or modification if it has already approved, other than for temporary experimental purposes, the same oenological practice, process or modification for wines marketed in its territory, subject to the justification of the oenological practice, process or modification in question to the climatic, geological or other production conditions in the areas in which it will be used.
  3. Nothing in this Agreement shall limit the use of any oenological practice, process or modification not accepted by a Contracting Party in accordance with the procedures in this Agreement in instances in which the product is marketed on either the domestic market of the other Contracting Party or a third party market.

Article 9

Modification of Annex I

  1. The Contracting Parties shall modify the relevant paragraph of Annex I to add the oenological practice, process or modification notified pursuant to Article 6(3) within 12 months of the date of such notification.
  2. By way of derogation from paragraph 1, where a Contracting Party has invoked the objection procedure provided for in Article 8, the Contracting Parties shall act in accordance with the outcome of the consultations, unless the matter is referred to arbitration, in which case:
    1. if the arbitrators determine that the notified oenological practice, process or modification fulfils the requirements set out in Article 6(2)(a) and (b), the Contracting Parties shall amend the relevant paragraph of Annex I to add the oenological practice or process within 90 days of the date of such determination;
    2. if however, the arbitrators determine that the notified oenological practice, process or modification does not fulfil the requirements set out in Article 6(2)(a) and (b), then the provisional authorisation for the import and marketing of wines originating in the notifying Contracting Party produced in accordance with the oenological practice, process or modification in question, as referred to in Article 7, shall cease after 30 days from the date of such determination. Such determination shall not affect the continued applicability of Article 7 in relation to the marketing of wine imported into the territory of the Contracting Parties before the date of the determination.

Title III

Geographical Indications of Wine

Article 10

Registration and protection in Canada

  1. The names listed in Annex III(a), which identify a wine as originating in the territory of the Community where a quality, reputation or other characteristic of the wine is essentially attributable to its geographical origin and is officially recognised and protected as a geographical indication within the meaning of Article 22.1 of the TRIPS Agreement by the applicable laws in the Community, are eligible for registration as protected geographical indications for wine in Canada.
  2. A protected geographical indication may not be used to describe or present a wine not originating in the place indicated by the protected geographical indication in question, including translations, whether or not accompanied by expressions such as "kind", "type", "style", "imitation" or the like, and whether or not the protected geographical indication is accompanied by a reference to the true place of origin.
  3. In accordance with the application process laid down in Canadian law, Canada shall take the necessary steps to have the names listed in Annex III(a) entered on the list of protected geographical indications in Canada after an application for registration has been made in good and due form.

Article 11

Protection in the Community

  1. The names listed in Annex III(b), which identify a wine as originating in the territory of Canada where a quality, reputation or other characteristic of the wine is essentially attributable to its geographical origin and is officially recognised as a geographical indication within the meaning of Article 22.1 of the TRIPS Agreement by the applicable laws in Canada, are eligible for protection as geographical indications in the Community.
  2. A protected geographical indication referred to in paragraph 1 may not be used to describe or present a wine not originating in the place indicated by the protected geographical indication in question, including translations, whether or not accompanied by expressions such as "kind", "type", "style", "imitation" or the like, and whether or not the protected geographical indication is accompanied by a reference to the true place of origin.
  3. In implementation of paragraphs 1 and 2, after receiving an official application by diplomatic note from Canada justifying that the names in paragraph 1 are geographical indications, the Community shall take the necessary steps to have the names listed in Annex III(b) protected by the competent authorities responsible for enforcement so that any wines incorrectly presented or described with a protected Canadian geographical indication are not placed on, or are withdrawn from, the market.

Article 12

Customary terms and transitional arrangements

  1. By the end of the transitional period hereinafter indicated, Canada shall no longer deem that the following wine names are customary in the common language of Canada as a common name for wines as foreseen in Article 24.6 of the TRIPS Agreement:
    Table 1:
    Name End of transitional period
    Bordeaux entry into force of the Agreement
    Chianti entry into force of the Agreement
    Claret entry into force of the Agreement
    Madeira entry into force of the Agreement
    Malaga entry into force of the Agreement
    Marsala entry into force of the Agreement
    Medoc entry into force of the Agreement
    Médoc entry into force of the Agreement
    Mosel entry into force of the Agreement
    Moselle entry into force of the Agreement
    Chablis 31 December 2013
    Champagne 31 December 2013
    Bourgogne 31 December 2008
    Burgundy 31 December 2008
    Port 31 December 2013
    Porto 31 December 2013
    Rhin 31 December 2008
    Rhine 31 December 2008
    Sauterne 31 December 2008
    Sauternes 31 December 2008
    Sherry 31 December 2013.

  2. From the date of entry into force of this Agreement, none of the wine names listed in paragraph 1 may be used to describe or present a Canadian wine that is certified as meeting VQA rules.

Article 13

Amendments to Annex III

The Contracting Parties may, at the request of either Contracting Party, amend Annex III to take into account any amendment of its internal legislation.

Title IV

Spirit Drinks

Article 14

Registration and protection in Canada

  1. The names listed in Annex IV(a), which identify a spirit drink as originating in the territory of the Community where a quality, reputation or other characteristic of the spirit drink is essentially attributable to its geographical origin and is officially recognised as a protected geographical indication within the meaning of Article 22.1 of the TRIPS Agreement by the applicable laws in the Community, are eligible for registration as protected geographical indications for spirit drinks in Canada.
  2. A protected geographical indication may not be used to describe or present a spirit drink not originating in the place indicated by the protected geographical indication in question, including translations, whether or not accompanied by expressions such as "kind", "type", "style", "imitation" or the like, and whether or not the protected geographical indication is accompanied by a reference to the true place of origin.
  3. In accordance with the application process laid down in Canadian law, Canada shall take the necessary steps to have the names listed in Annex IV(a) entered on the list of protected geographical indications in Canada after an application for registration has been made in good and due form.

Article 15

Protection in the Community

  1. The names listed in Annex IV(b), which identify a spirit drink as originating in the territory of Canada where a quality, reputation or other characteristic of the spirit drink is essentially attributable to its geographical origin and is officially recognised as a geographical indication within the meaning of Article 22.1 of the TRIPS Agreement by the applicable laws in Canada, are eligible for protection as geographical indications in the Community.
  2. A protected geographical indication referred to in paragraph 1 may not be used to describe or present a spirit drink not originating in the place indicated by the protected geographical indication in question, including translations, whether or not accompanied by expressions such as "kind", "type", "style", "imitation" or the like, and whether or not the protected geographical indication is accompanied by a reference to the true place of origin.
  3. In implementation of paragraphs 1 and 2, after receiving an official application by diplomatic note from Canada justifying that the names in paragraph 1 are geographical indications, the Community shall take the necessary steps to have the names listed in Annex IV(b) protected by the competent authorities responsible for enforcement so that any spirit drinks incorrectly presented or described with a protected Canadian geographical indication are not placed on, or are withdrawn from, the market.

Article 16

Amendments to Annex IV

The Contracting Parties may, at the request of either Contracting Party, amend Annex IV to take into account any amendment of its internal legislation.

Article 17

Spirit names

  1. By the end of a transitional period of two years from the date of entry into force of this Agreement, Canada shall recognise the following spirit drink names as referring only to spirit drinks exclusively produced in the countries hereinafter indicated and shall not permit the use of these names on spirit drinks not exclusively produced in the country so indicated:

    Grappa: Italy
    Jägertee, Jagertee, Jagatee: Austria
    Korn, Kornbrand: Germany, Austria
    Ouzo, Oύζο: Greece
    Pacharán: Spain.

  2. By the end of a transitional period of two years from the date of entry into force of this Agreement, the Community shall recognise Rye Whisky as referring only to spirit drinks originating in Canada and shall not permit the use of this name on spirit drinks not originating in Canada.
  3. By way of derogation from paragraphs 1 and 2, a Contracting Party may, following a recommendation of the Joint Committee, permit the use of a spirit drink name mentioned in paragraphs 1 and 2 on a spirit drink produced in a third country, provided that:
    1. the reputation of the spirit drink in question is not dependent on the reputation of the spirit drink produced in one of the Contracting Parties; and
    2. to do so would not mislead consumers.

Article 18

Labelling of spirit drinks

  1. In the territory of Canada, spirit drinks may not be labelled with a term which is false, deceptive or misleading or is likely to create an erroneous impression about the character, composition, quality, origin or value of a spirit drink, and in particular where spirit drinks are labelled with the name of or reference to a Member State of the Community.
  2. In the territory of the Community, spirit drinks may not be labelled with a term which is incorrect, or likely to cause confusion or mislead the persons to whom it is addressed, and in particular where spirit drinks are labelled with the name of or reference to Canada.

Article 19

Whisky production

  1. Canada shall ensure that whisky, including Canadian Whisky, Canadian Rye Whisky and Rye Whisky, exported from Canada to the Community is a spirit drink produced by the distillation of a mash of cereals:
    • saccharified by the diastase of the malt contained therein, with or without other natural enzymes,
    • fermented by the action of yeast,
    • distilled at an alcoholic strength not exceeding 94,8% by volume so that the distillate has the aroma and taste derived from the raw materials used,
    • matured for at least three years in wooden casks not exceeding 700 litres capacity,
    • bottled at not less than 40% by volume, and
    • to which no substance other than water and spirit caramel has been added.
  2. Concerning the maximum distillation strength of whisky, distillate produced in Canada between 31 December 1990 and 31 December 2002 at a strength such that the distillate has the aroma and taste derived from the raw materials used shall be accepted as meeting the maximum distillation strength described at the third indent of paragraph 1 and may be included in whisky exported from Canada to the Community until 31 December 2008, notwithstanding that no records of the actual distillation strength may be available.

Title V

Wine Labelling

Article 20

Principles of wine labelling

The Contracting Parties agree that information on wine labels shall:

  • not be incorrect or false, and
  • not deceive or be likely to cause confusion or mislead the persons to whom it is addressed, or be likely to create an erroneous impression about the character, composition, quality, origin or value of a wine.

Article 21

New labelling provisions

The Contracting Parties shall continue to negotiate, in the Joint Committee, rules applicable to the labelling of wines with a view to reaching an agreement.

Article 22

Interim provisions

Pending the outcome of the negotiations referred to in Article 21, wines labelled in conformity with the interim provisions set out in Annex V may be marketed in the respective territories of the Contracting Parties.

Title VI

Import Certification and Marketing Requirements for Wine

Article 23

Wine certification by the Community

  1. Wine originating in Canada, which is produced under the supervision and control of one of the competent bodies listed in Annex VI, may be imported in accordance with the simplified certification provisions provided for under Community rules.
  2. Individual producers may draw up and sign the certification document where they are authorised to do so by one of the competent bodies.
  3. Canada shall ensure that a competent body supervises and inspects the authorised individual producers, and is satisfied that the producers possess the necessary capacity to draw up the certification documents and analysis report.
  4. Canada shall notify the Community, upon request, of the names and addresses of producers authorised to draw up the certification document referred to in paragraph 2.
  5. The Community shall not submit the import of wine originating in Canada to a more restrictive or more widespread system of certification than that which applies on the date of entry into force of this Agreement, and that which may be applied to wines imported from other countries applying equivalent supervision and control measures, other than temporary additional certification requirements in response to legitimate public policy concerns.

Article 24

Wine certification by Canada

  1. Canada shall not submit the import of wine originating in the Community to a more restrictive or more widespread system of certification, analysis or testing to be undertaken by the supplier or undertaken by the Canadian competent authorities and charged to the supplier than that which applied on the date of entry into force of this Agreement, other than temporary additional certification requirements in response to legitimate public policy concerns.
  2. Canadian competent authorities shall, within a period of one year from the entry into force of this Agreement, reduce the certification, analysis or testing requirements referred to in paragraph 1 in order that the requirements be no more restrictive than necessary.

Article 25

Wine produced from grapes frozen on the vine

The terms "Icewine", or if produced in Canada or Luxembourg, "Vin de glace", or if produced in Austria or Germany, "Eiswein", may only be used to describe wine produced from grapes frozen on the vine and produced under the following conditions:

  1. the grapes must be frozen during harvest as well as pressing, preferably at temperatures no higher than minus seven degrees Celsius;
  2. no artificial freezing of any kind is permitted;
  3. all the grapes used in production must originate in the same region;
  4. no enrichment is permitted;
  5. the minimum natural alcohol content must be 15% alcohol by volume;
  6. the minimum actual alcohol content must be 5,5% alcohol by volume;
  7. the total sulphur dioxide content may not exceed 400 mg/l; and
  8. the volatile acidity may not exceed 2,1 g/l.

Title VII

Cooperation

Article 26

Tasks of Contracting Parties

  1. The Contracting Parties shall, either directly or through the Joint Committee established pursuant to Article 27, maintain contact on all matters relating to the implementation and the functioning of this Agreement.
  2. In particular, the Contracting Parties may mutually
    1. amend the Annexes as foreseen in this Agreement;
    2. inform each other of their intention to develop new measures or amendments to existing measures of public policy concern, such as health or consumer protection, with implications for the wine or spirit drinks sector;
    3. notify each other of legislative measures, administrative measures and judicial decisions concerning the application of this Agreement and inform each other of measures adopted on the basis of such decisions.

Article 27

Joint Committee

  1. There shall be established under this Agreement a Joint Committee consisting of representatives of the Community and Canada.
  2. The Joint Committee may make recommendations by consensus. It shall determine its own rules of procedure. It shall meet at the request of either of the Contracting Parties no later than 90 days from the date of the request, alternately in the Community and in Canada, at a time and place, and in a manner mutually determined by the Contracting Parties, including by videoconference.
  3. The Joint Committee shall see to the proper functioning of this Agreement and may consider any matter related to its implementation and operation. In particular it shall be responsible for:
    • recommending amendments to the Annexes as foreseen in this Agreement;
    • making recommendations which would contribute to the attainment of the objectives of this Agreement or of the 1989 Agreement;
    • exchanging information to optimise the operation of this Agreement;
    • recommending proposals on issues of mutual interest to the Contracting Parties in the wine or spirits sector, and
    • establishing the schedule of fees and expenses referred to in Annex VII (9).

Article 28

Infringement

  1. If a Contacting Party has reason to suspect that:
    1. a wine or spirit drink being or having been traded between the Contracting Parties, or marketed in the territory of either of them, is not in conformity with this Agreement or the 1989 Agreement as amended, and
    2. this non-compliance is of particular interest to the other Contracting Party,

    it shall immediately inform the other Contracting Party in conformity with the provisions of this Agreement or of the 1989 Agreement as amended as the case may be.

  2. The information to be provided in accordance with paragraph 1 shall be accompanied by appropriate documents and shall include, in particular, the following details regarding the wine or spirit drink concerned, insofar as they are known to the Contracting Party:
    1. the producer and the person who has power of disposal over the wine or spirit drink, and
    2. details of the alleged non-compliance.

Title VIII

Dispute Settlement

Article 29

Consultations

  1. If a Contracting Party considers that the other Contracting Party has failed to fulfil an obligation under this Agreement, it may request in writing consultations with the other Contracting Party. The Contracting Parties shall, within 30 days of receipt of the request, consult with each other with a view to resolving the issue.
  2. The Contracting Party requesting the consultations shall provide the other Contracting Party with all the information necessary for a detailed examination of the issue in question.
  3. If the issue has not been resolved through consultations within 60 days of receipt of the request for consultations:
    1. the consultation period may be extended by mutual agreement of the Contracting Parties; or
    2. either Contracting Party may notify, in writing, the other Contracting Party of its decision to refer the issue to arbitration under Article 31.

Article 30

Reference of a dispute to an organisation

The Contracting Parties may refer any dispute on the application or interpretation of this Agreement, for arbitration by a competent organisation. Any such reference shall only be made subject to such terms and conditions agreed upon by the Contracting Parties. Such terms shall include a provision that both Contracting Parties agree to the reference and agree to be bound by the decision of the organisation.

Article 31

Arbitration

  1. In the absence of any reference under Article 30, and following the decision to refer an issue to arbitration pursuant to Article 29 or Article 8, the arbitration shall be conducted in accordance with the procedure laid down in Annex VII.
  2. Any dispute concerning the application of Article 42 may be referred by either Contracting Party to arbitration under this Article and Annex VII. In such case the consultation period provided for under Article 29 is replaced by the procedure set out in Article 42(2).
  3. Each Contracting Party shall take reasonable measures to ensure implementation of the determination of the arbitrators. In the case of a determination following a reference made pursuant to Article 8, Article 9(2) shall apply.

Title IX

General and Final Provisions

Article 32

Transit - small quantities

Titles II, III, IV, V and VI of this Agreement shall not apply to:

  1. wines or spirit drinks that are in transit through the territory of one of the Contracting Parties; or
  2. wines or spirit drinks that originate in the territory of one of the Contracting Parties and are consigned in small quantities between those Contracting Parties under the conditions and according to the procedures provided for in the laws and regulations of the Contracting Parties.

Article 33

Territorial application

This Agreement shall apply to the territory of Canada and to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty.

Article 34

Exceptions

  1. In the case of homonymous geographical indications:
    1. protection pursuant to Articles 10(2), 11(2), 14(2) and 15(2) shall be accorded to each indication, provided that the geographical indication, although literally true as to the territory, region or locality in which the wine or spirit drink originates, does not falsely represent to the public that the wine or spirit drink originates in another country;
    2. the Contracting Parties may mutually determine the practical conditions of use under which the homonymous names referred to in this paragraph will be differentiated from each other, taking into account the need to ensure equitable treatment of the producers concerned and that consumers are not misled.
  2. Nothing in this Agreement shall oblige a Contracting Party to protect a geographical indication of the other Contracting Party under the circumstances foreseen in the second sentence of Article 24.6 and Articles 24.7, 24.8 and 24.9 of the TRIPS Agreement.
  3. Article 17(1) shall not require the Government of Canada to prevent the use of: a registered trademark which was registered or applied for prior to 1 January 1996; and the name "Grappa di Ticino" on certain spirit drinks produced in the Ticino region of Switzerland.
  4. Article 17(2) shall not require the Community to prevent the use of the name "Rye Whisky" on certain spirit drink meeting the provisions laid down in Council Regulation (EEC) No 1576/89 (as amended) produced in the United States of America.

Article 35

Sanitary and phytosanitary measures

  1. The provisions of this Agreement shall be without prejudice to the right of the Contracting Parties to take sanitary and phytosanitary measures necessary for the protection of human, animal or plant life or health, provided that such measures are not inconsistent with the provisions of the Agreement on the Application of Sanitary and Phytosanitary Measures contained in Annex 1A of the WTO Agreement.
  2. Without prejudice to paragraph 1, each Contracting Party shall endeavour to inform the other Contracting Party under the procedures set out in Title VII at the earliest reasonable opportunity of developments which could lead, in relation to wine or spirit drinks marketed in its territory, to the adoption of such measures, especially those concerning the setting of specific limits on contaminants and residues, with a view to agreeing a common approach.

Article 36

Marketing of pre-existing stocks

  1. Wines or spirit drinks which, at the date of or prior to the entry into force of this Agreement, have been produced in or imported into the territory of a Contracting Party in accordance with its internal laws and regulations, but the marketing of which in that Contracting Party would otherwise be prohibited by this Agreement, may be marketed under the following conditions:
    1. where wine has been produced using one or more oenological practices or processes not referred to in Annexes I or II the wines may be marketed in the territory of the Contracting Party concerned until stocks are exhausted;
    2. where wines or spirit drinks are described or presented in a manner that is inconsistent with Title III, Title IV or Title V, they may continue to be marketed, in the territory of the Contracting Party concerned, using the same labelling indications by which the products were legally produced or imported, by:
      1. wholesalers or producers, for a period of three years; and
      2. retailers, until stocks are exhausted.
  2. Wines or spirit drinks produced in or imported into the territory of a Contracting Party in accordance with this Agreement, but the marketing of which in that Contracting Party would otherwise be prohibited by this Agreement following an amendment thereto, may be marketed until stocks are exhausted unless otherwise agreed by the Contracting Parties.

Article 37

Relation to the WTO Agreement

The Contracting Parties retain their rights and obligations under the WTO Agreement.

Article 38

Amendment of the 1989 Agreement

The 1989 Agreement shall be amended as set out in Annex VIII.

Article 39

Annexes

The Annexes to this Agreement form an integral part thereof.

Article 40

Authentic languages

This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish and Swedish languages, each of these versions being equally authentic.

Article 41

Entry into force

This Agreement shall enter into force on the first day of the second month following the date on which the Contracting Parties have exchanged diplomatic notes confirming the completion of their respective procedures for the entry into force of this Agreement.

Article 42

Temporary non-application of certain provisions and termination

  1. In the event that the use of a geographical indication listed in Annex III(a) is asserted in Canada under the circumstances foreseen in Articles 24.4 and 24.5 and the first sentence of Article 24.6 of the TRIPS Agreement, Canada may elect not to apply, to the minimum extent necessary, the provisions of Articles 10(2) and 14(2) of this Agreement. Should the circumstances described in this paragraph arise, Canada shall notify the Community in writing at the earliest available opportunity. Any reliance by Canada on the first sentence of Article 24.6 of the TRIPS Agreement shall be subject to Article 12.
  2. On receipt of the notice referred to in paragraph 1, the Community may request a meeting of the Joint Committee, which, by way of derogation from Article 27(2), shall take place within ten days, if so requested. Such a meeting of the Joint Committee shall explore the full range of options available to the Contracting Parties to address the issue that caused Canada to rely on paragraph 1.
  3. In the event that Canada does not apply Article 10(2) or 14(2) pursuant to paragraph 1, and the Joint Committee fails to arrive at a mutually agreed solution within 30 days from the date on which the meeting of the Joint Committee pursuant to paragraph 2 was held, the Community may decide not to apply certain provisions, in whole or in part, of this Agreement or the 1989 Agreement. Any such measures taken by the Community shall be proportionate to the adverse commercial effect caused by Canada's reliance on paragraph 1 and may not last longer than the non-application of the said Articles by Canada.
  4. The Community shall not adopt measures pursuant to paragraph 3 when the circumstances causing reliance by Canada on paragraph 1 relate to a name that the Community has agreed can be used in the Community market or in export markets under agreements with third countries.
  5. Either Contracting Party may terminate this Agreement by giving one year's written notice to the other Contracting Party. However, in case the use of a geographical indication listed in Annexes III(a) or IV(a) is asserted in Canada under the first sentence of Article 24.6 of the TRIPS Agreement as foreseen in paragraph 1, the Community may terminate this Agreement by giving three months written notice to Canada.
  6. Should either Contracting Party terminate the 1989 Agreement as amended by this Agreement, such termination shall also effect a simultaneous termination of this Agreement.

IN WITNESS WHEREOF, the undersigned, being duly authorized to that effect, have signed this Agreement.

Done in duplicate, at Niagara-on-the-Lake, this sixteenth day of September 2003.

Lyle Vanclief
Pierre S. Pettigrew
FOR THE GOVERNMENT OF CANADA

Franz Fischler
Adlofo Urzo
FOR THE EUROPEAN COMMUNITY



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