WASHINGTON, DC - On October 4, 2024, the European Court of Justice (ECJ) issued a judgment concerning the labeling of organic products and the use of the EU organic label. The ruling could have lasting implications for trade into the EU market under the U.S. - EU Organic Equivalence, Alexis Bramley, Director of Strategic Projects for the Organic Trade Association, said in a recent statement. The statement read:

The judgment is the result of a case brought by a German company, Herbaria Kräuterparadies GmbH, which produces a food supplement made of fruit-based ingredients with added vitamins and iron. The German regulatory authorities determined the company needed to remove the EU organic logo and references from the product, as the EU organic regulations do not allow for the addition of vitamins and minerals, except in the case that it is required for the production of a specific type of product under EU or national legislation.

The company disagreed with the determination and took the case to the European Court of Justice, arguing it was receiving unfair treatment as the same product manufactured in the U.S. can be sold into the EU under the U.S. - EU Organic Equivalence and bear the EU organic logo. Current National Organic Program (NOP) regulations allow for the fortification of organic products, and this has not been determined to be a critical variance under the current equivalence agreement. 

Organic equivalence arrangements are a mutual recognition in the form of bilateral arrangements between key trading partners that reduce trade barriers and strengthen the supply chain. Organic equivalences recognize two systems as comparable and verifiable, though not necessarily identical, and acknowledge in certain instances that technical requirements will differ by jurisdiction or region. Ultimately, the goal of these arrangements is to recognize two countries’ standards as comparable without compromising the integrity of the organic designation in both markets. This allows for trade between the markets without the added burden of redundant national certifications throughout the entire supply chain. The U.S. - EU Organic Equivalency has been in place since 2012. 

After reviewing the Herbaria complaint, the European Court of Justice issued a judgement that processed products from third countries with recognized equivalent organic production standards, like the U.S., cannot use the EU organic logo if they do not fully comply with EU regulations. Products from third countries with recognized equivalent organic production standards, like the U.S., can however still export their products with the USDA organic seal. However, the ruling states that third countries can only use the EU organic logo if the product fully complies with EU organic production regulations.

To read more about the implications and potential outcomes, as well as what the industry should expect next, click here.