The EU experience with geographical indications

DG Agriculture and Rural Development, European CommissionWorkshop on Geographical Indications

Kiev, 25 – 26 August 2011

Main points:

The protection of Geographical Indications: a cornerstone of the EU quality policy

Economic benefits: some examples

Practicalities of the EU GIs system

EU Quality Policy - main instruments Farming requirements Marketing standards EU quality schemes (geographical indications;

traditional specialities; organic farming)

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Geographical Indication

Main purposes:

Protection of legitimate interests

Consumers; and,

Producers by;

• Protection of IP in names

• Marketing assistance (EU logos)

Benefits for farmers Ensure that reputation and added value stays with the local

producers

Consumers are often willing to pay more for such products

Prevent de-localisation of production and retain population

Tool for small producers that individually would never be able to reach out to markets

Labour intensive – competitive advantage of developing economies

Benefits for consumers

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quality labels – message about high value-added products connecting quality, tradition and reputation

a guarantee that the product is authentic, made according to specification, controlled and owes its specific characteristics to production in the particular area

Broader impact of GIs Contribute to sustainable rural development Promote diversification and competitiveness Rewards local people by maintaining/increasing

local employment in agricultural activities Spill over effects:

– Conservation of local plant varieties (preserve the environment and biodiversity)

– Help to preserve traditional knowledge– Positive impact on tourism, gender

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Success reflected in number of registered GIs – 1900 Wines– 325 Spirit Drinks– 970 Foodstuffs

Significant yearly increase in the number of GIs

Possibility to protect third countries GIs upon individual request or in the framework of bilateral agreements

The EU GIs Main Features

Food GIs by product group(% turnover)

Others 13%

Bakery products 4%

Fruit & vegetables 4%

Fresh meat 6%

Cheeses 37%

Meat products 16%

Beers 20%

Production value of EU GIs 14.2 billion Euro turnover in total (at wholesale

level) Estimated 21 billion Euro at retail level Excluding wines and spirit drinks Slightly higher than the value of the EU organic

food sector (12 billion Euro at wholesale level, including wines and spirit drinks)

Equivalent to the fresh fruit and vegetables sector in the EU, or to the turnover of Danone

Including very specific products :

Effects of GI protection: Pruneau d’ Agen

Domestic Sales

Total Sales

0

10000

20000

30000

40000

50000

60000

Domestic Sales Total Sales

Production cost: 2 times the cost in California, 3 times the cost in Chile, 4 times Argentinean cost

Increase in production and exports: 50.000 tons per year

1.800 family farms with average of 40 ha.

Effects of GI protection: the Piment d´Espelette An association to protect the « Piment d'Espelette »

establishedn April 1993, as a reaction to cases of fraud. Protection obtained in 2000

Effects of protection:

Increase in prices: 10€ (94) 20€ (04) Increase in number of producers (30 to 58) Increase in number of plants (195.000 to 530.000) Increase in surface (8 to 28 ha) In a context of ageing rural population, « young »

average age (between 25 and 45) Effect on tourism: 600.000 visitors per year (600 inhab.) Fête du Piment, Confrérie du Piment d'Espelette…

GIs comparative advantages

Number of farms 5,000 << 8,400

Annual Working Unit/farm 1,7 << 2,5

Total AWU 8,500 << 21,000

Income/AWU equal

Nitrogen loss/kg ha-1 309 >> 239

“Bulk” model Friesland (Netherlands)

“Quality” modelParmigiano Reggiano (Italy)

Source: “High quality products and regional specialties: a promising trajectory for endogenous and sustainable development”,Prof. Jan Douwe van der Ploeg, OECD, Siena, Italy, 10-12 July 2002

1.57 billion kg of milk

Enotourism and the wine routes

EU Wine routes: the numbers (informal census of 2001)

Italy 111

Austria 19

Portugal 16

France 17

Farm tourism

Maintaining of traditions

Direct selling of quality farm products

Environment and landscape preservation

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Foodstuffs (EC Reg n° 510/2006) Wines (EC Reg n° 479/2008) Spirit drinks (EC Reg n° 110/2008)

Databases;

Door E-Bacchus E-

Spirits

EU Legal Framework for GI’s

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IP protection Right to use: any operator may use GI on authentic product Protection against wrongful uses of registered GI:

– direct or indirect use on a comparable product that does not comply with the specifications, or on any product in case of exploitation of reputation;

– misuse, imitation or evocation, even if name is translated, true origin is indicated or with qualifications like “type”, “method”, etc.;

– any other false or misleading indication or other practice liable to mislead

Protection indefinite Relation trademarks

– GI registration prevents registration of conflictual trademark

– Renowned and long-used trademark prevents GI registration

– Other prior trademark and GI ‘coexist’

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Example of a wrongful use “Parma” contained in name

Evocation of Parmigiano Reggiano by imitating;– Imitating shape;

– Imitating texture;

– Using the typical knife.

Evocation of Italian origin;– Italian flag;

– Designation “formaggio”.

Renamed into “Pastakaas”, Dutch for a cheese for pastas.

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Registration process

I Stage – national procedure

Producer group

Product specification

Extract of most relevant data of specification

Control body

National objection procedure

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Registration process

II Stage – Community procedure

Examination

Publication for objection

(anybody with legitimate interest regardless of

domicile may object)

Consultations to resolve objections

Final decision (Official Journal)

What may impede registration?

The name does not qualify as a GI (def.), is generic in the EU common name of an

agricultural product of foodstuff, is of a plant variety or animal breed is likely to

mislead the consumer, Homonymous when mislead the consumer, A prior, renowned and long used trademark

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How to register a foreign GI in the EU?

Direct application by titleholder to EU GI Registers

Negotiations of bilateral agreements on GI-protection

Condition; GI has to be protected in country of origin

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Examples of foreign GIs Wines

– Direct applications; Napa Valley, (x in process)

– Bilateral agreements; total of 1024

Foodstuffs

– Direct applications; Café de Columbia (15 in process)

– Bilateral agreements; total of 91

Spirit drinks

– Direct applications; x (x in process)

– Bilateral agreemens; total of x

Mexico

Chile

CANMercosur

ACP/EPAs

SA

W. BalkansEUROMED

UkraineCH

GCC

India

EU Bilateral agreements covering GIs

CA Malaysia

GeorgiaMoldova

KoreaChina

Canada

USA

Australia

ArmeniaAzerbajan

NorwayIceland

Concluded

Ongoing

Future

Singapore

SADC EPA

Vietnam

Japan

Canada

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Links

Agricultural products and foodstuffs: Council Regulation (EC) No 510/2006 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32006R0510:EN:HTML DOOR: http://ec.europa.eu/agriculture/quality/database/index_en.htm Quality policy web-pages: http://ec.europa.eu/agriculture/quality/index_en.htm Communication on agricultural product quality policy, COM(2009)234, 28.5.2009: http://ec.europa.eu/agriculture/quality/policy/com2009_234_en.pdf

Wine: Council Regulation (EC) No 479/2008 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:148:0001:0061:EN:PDF e-BACCHUS, database of wine geographical indications: http://ec.europa.eu/agriculture/markets/wine/e-bacchus/index.cfm?event=pwelcome&language=FR

Spirit drinks: Regulation (EC) No 110/2008 .europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:039:0016:0054:EN:PDF

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Thank you for your attention!

Markus KLINGLERDG Agriculture and Rural Development, European Commission

markus.klingler@ec.europa.eu

Communication: http://www.ec.europa.eu/agriculture/quality/policy/communication_en.htm

Quality web-pages: http://www.ec.europa.eu/agriculture/quality/index_en.htm