CANADA: COCOA AND CHOCOLATE PRODUCTS The following notification is being circulated in accordance with Article 10.6. G/TBT/Notif. 96.109. 1. Member to Agreement notifying: Canada. If applicable, name of local government involved (Articles 3.2 and 7.2): 2. Agency responsible: Health Canada. Agency or authority designated to handle comments regarding the notification can be indicated if different from above: 3. Notified under Article 2.9.2. 4. Products covered (HS or CCCN where applicable, otherwise national tariff heading. ICS numbers may be provided in addition, where applicable): Cocoa and chocolate products. 5. Title, number of pages and language(s) of the notified document: Proposed Amendment to the Food and Drug Regulations (Schedule No. 719), (pages 976-986). 6. Description of content: Note: Item (d) below has been notified under the SPS Agreement. Division 4 of the Food and Drugs Regulations includes a number of standards of identity and composition for a variety of cocoa and chocolate products. Since the promulgation of the current standards, the industry has undergone evolutionary changes in the domestic and international market-places. Amendments to the Regulations are, therefore, proposed, which will reflect current industry practices and provide flexibility to the industry with respect to the development of new products. The proposed amendments would: (a) revise the standards for cocoa butter, cocoa nibs and chocolate, to enhance quality parameters; (b) establish new compositional standards for white chocolate, and bitter-sweet chocolate, semi-sweet chocolate and dark chocolate, thereby providing an enhanced level of assurance regarding the composition and consistency of such products; (c) modify the following standards to more clearly distinguish differences in product composition; - cocoa liquor, cocoa mass, unsweetened chocolate, bitter chocolate, and chocolate liquor, sweet chocolate, milk chocolate, cocoa and cocoa powder, and low-fat cocoa powder; (d) enhance the opportunity for innovation and provide greater flexibility to manufacturers by permitting the addition of a broader range of milk and sweetening ingredients to cocoa and chocolate products; and by permitting the use of additional pH-adjusting agents in cocoa products, and emulsifying agents in chocolate products. With respect to the pH-adjusting agents and emulsifying agents, these food additives are currently approved for use in a wide variety of products, so that the current proposal represents an extension of use. These proposed extensions of use have been evaluated from the standpoint of health and safety and are considered acceptable. 7. Objective and rationale: Prevention of deceptive practices. 8. Relevant documents: Canada Gazette, Part I, 30 March 1996. 9. Proposed date of adoption: Not stated. Proposed date of entry into force: N/A. 10. Final date for comments: 14 June 1996. (130)

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