A dispute between the Peruvian fishing industry and the European Union over the labelling of sardines has been resolved, surprisingly, in favour of the South American country, according to a report on FT.com.
According to lawyers, the victory could have numerous other ramifications to the way food products are labelled in Europe.
Peru was arguing that it should be able to call its Sardinops sagax exports sardines when marketed in the EU. The EU said that the term "sardine" was applicable only to species found in the Atlantic or Mediterranean and that the Peruvian exports would have to be called "pilchards" or "sprats" to avoid marketplace confusion. Peru claimed that this amounted to protectionism for Europe's fishing industry.
After Peru's initial victory in front of a World Trade Organisation panel, the WTO's appellate body has now upheld that decision in a ruling that will be formally adopted this week. That means the decision becomes a binding legal obligation on the EU and gives the European body up to 15 months to amend its regulations.
The victory for the Peruvian seafood industry could spell a number of other changes in the way imported foods are labelled in the EU. In the past, there have been disputes with EU authorities over the levels of cocoa in British chocolate, as well as a number of other fresh food products such as meat and fruits. Whether or not future EU labelling requirements will be adhered to as diligently now remains to be seen.