I. Identification

1. The Issue

Caspian caviar was formerly monopolized by the Soviet Union and Iran, the only two countries that flanked the Caspian Sea and thus, they controlled the supply and price of caviar. Since the dissolution of the Soviet Union, however, there are five countries that are eager to capitalize on caviar. Besides Iran, there is Azerbaijan, Kazakhstan, Turkmenistan, Russia including its two Autonomous Republics-Daghestan and Kalmykia. The increased desire to capitalize on caviar exports has resulted in illegal overfishing which disregards environmental regulations set by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES seeks to regulate the population of endangered species of sturgeons and has set export quotas to help sustain the sturgeon population. The problem of poaching, however, continues to be particularly acute in all littoral states, including Russia. Experts maintain that up to 90% of black caviar sold in the Russian capital has been produced illegally. Although Iran and the CIS are the primary sources of caviar in the international market, other supposed exporters of caviar; such as Switzerland, Norway, Denmark, Sweden, Iceland and Greenland do not differentiate between the roe of sturgeons and that of other types of fish. In addition, many countries cited as the source of caviar imports, mostly countries in the EU, may merely be re-exporting the very caviar imported from Iran and the CIS.

2. Description

History of Caviar

In today's market, caviar is among the most expensive and exclusive of all preserved foods for several reasons: the mere scarcity of the food because of over-fishing and pollution, the labor-intensive processing, and its tendency to perish rapidly. Another reason that it is an exclusive and thus costly product is because of the age and size a sturgeon must reach before it develops its most valuable roe.

Types and Classes of Caviar

The sturgeon, the only fish whose roe can be classified as caviar under FDA rulings, is a prehistoric fish of almost 250 million years. There are around 25 different species and sub-species of sturgeons identified thus far, of which only three sturgeon species produce exquisite caviar: Beluga, Asetra, and Sevruga yielding over 90% of the world's total production (http://www.iran-export.com/exporter/company/shilat/). Beluga is the largest of the sturgeon family around 4 meters in length and 1000kg in weight. Beluga is very rare and thus only approximately 120 or less fish are caught each year. The roe of a beluga sturgeon is around 15% of its body weight, and its color varies from light gray to dark gray. The largest of the three types of roe, beluga roe has delicate skin, significant texture, and an apparent “eye” or point in the middle of each egg.

The oscetra, is less rare than the beluga and is a medium sized sturgeon measuring 2 meters in length and 200 kg in weight. Oscetra roe varies in color from dark brown to gray and can often have shades of gold. The oscetra roe has a hint of hazel nut and has a delicate skin-like surface.

Labeling Requirements of Caviar

Until 1966, any fish roe that could be colored black could be named as caviar. Thereafter, the Food and Drug Administration defined the product, and established guidelines for its labeling. The current labeling requirements indicate that:

The name 'caviar' unqualified may be applied only to the eggs of the sturgeon prepared by a special process. Fish roe prepared from the eggs of other varieties of fish and prepared by the special process for caviar must be labeled to show the name of the fish from which they are prepared, for example ‘whitefish caviar.’ All words in the name should be in type of substantially the same size and prominence. If the product contains an artificial color, it must be an approved color and its presence must be stated on the label conspicuously. No artificial color should be used which makes the product appear to be better or of greater value than it is. The label should bear a statement of ingredients listed by their common or usual names in descending order of predominance because no standard of identity has been established for any form of caviar” (Fishery Products, US Food and Drug Administration, www.fda.gov/opacom/morechoices/smallbusiness/blubook/fishprod/htm).

Interestingly, there has been conflicting conceptions in the international market as to what it means to be called 'caviar.' For example, in France, laws claim that only processed roe of sturgeon can be termed as caviar. In the US, however, various types of fish roe can be sold as 'caviar' as long as the fish type is indicated on the packaging label. The US and other countries also produce 'caviar' from the roe of salmon, paddlefish, whitefish and lumpfish. Each type of roe has a different standard and the price is much lower than true caviar. For example, the roe of salmon is classified by its firmness and juicyness and sells for around $80 per kilogram versus $2,154 per kilogram for real caviar (http://www.ezcaviar.com/service/caviar_history_htm.htm.).

3. Related Cases: For Example,

IRANIAN SAFFRON	TUNA	CASPIAN
STURGEON	THAI SHRIMP	CAVIAR

4. Date: May 3, 2005

II. Legal Clusters

Iran is not currently a member of the WTO, and consequently is not protected under WTO regulations. Iran, however, does comply to the Convention on International Trade of Endangered Species, a treaty protecting 30,000 animal and plant species including sturgeon. The family of sturgeons, the basis of the multi-million dollar caviar industry was added to the Convention on International Trade of Endangered Species Appendix II, which allows for strictly managed international trade. Sturgeons have been dangerously depleted in recent years due to pollution as well as illegal overfishing. The CITES agreement gives the sturgeon range States (including the Russian Federation, Iran, and other States bordering the Caspian Sea) the tools and international support they need to regulate the international caviar trade and to ensure its sustainablity.