The European Union welcomed on Wednesday 6 November the conclusion of the agreement with Beijing, which will ensure the protection of 100 European geographical indications (GIs) on the Chinese market. The European Commission has promised not to stop there and has already committed itself to completing this list in the coming years (see EUROPE 12362/18, 12357/15).
As soon as the agreement is applied, these names, identified by the EU according to the importance of their production, their export to China and the risks of imitation to which they are exposed, can no longer be registered as trademarks, trademark registrations and usurpers will be automatically rejected and translations and transliterations of GI names into Chinese language will be prohibited.
As for imitation products already in circulation on the Chinese market – mainly originating in non-Member States such as Australia or the United States – a grandfathering clause will guarantee them a transition period that is sometimes quite long (8 years for feta cheese, for example).
100 Chinese GIs will benefit from equivalent protection in the EU.
Chinese enthusiasm
The Chinese agri-food market is a key market for EU producers, as Chinese consumers’ enthusiasm for European products is booming.
France and Italy own the lion’s share with more than half of the GIs on the list.
“French exports of agri-food products under geographical indications, particularly wines and spirits, are the spearhead of our exports to China”, said Didier Guillaume, French Minister of Agriculture, in a statement.
“This agreement gives them better protection and value in the Chinese market”, he added: on average, GIs are sold at twice the price of products not covered by GIs, according to a European Commission source.
However, Coldiretti, Italy’s leading agricultural organisation, expressed its disappointment with the agreement in a press release in which it regretted that only 3% of existing Italian GIs were protected. According to one source, however, this calculation would not take into account the real need for coverage of these GIs (presence on the market, risks of imitation, etc.).
174 additional names should also be added to this existing list within 4 years, the Commission promised.
A victory for European diplomacy
The export of this system of protection of geographical designations, which is dear to the EU, is a minor European victory. On the other hand, this system is opposed by Washington, which, according to sources close to the discussions (see EUROPE 12243/2), has put pressure on Beijing not to support it.
For China, it is therefore a demonstration that it has been able to honour its commitments made with the EU at the bilateral summit last April.
After the legal grooming and translation of the Treaty text, the EU Council and the European Parliament will be asked to approve the text. The agreement is unlikely to be implemented until the second half of 2020 at the earliest. (Original version in French by Hermine Donceel)