New agreement will protect 100 European Geographical Indications in China

07 Nov 2019 --- The protection of two hundred Geographical Indications (GI) will now defend some EU and Chinese foods and beverages from imitations and usurpation. The bilateral agreement protects 100 European and 100 Chinese goods and is expected to result in reciprocal trade benefits and demand for high-quality products on both sides. Following the conclusion of the negotiations, the landmark agreement will now go through legal scrutiny, as the European Parliament and the Council will be asked to give their approval. The agreement is expected to enter into force before the end of 2020.

“European GI products are renowned across the world for their quality. Consumers are willing to pay a higher price, trusting the origin and authenticity of these products while further rewarding farmers. This agreement shows our commitment to working closely with our global trading partners, such as the People’s Republic of China. It is a win for both parties, strengthening our trading relationship, benefitting our agricultural and food sectors and consumers on both sides,” says Phil Hogan, Agriculture and Rural Development Commissioner at the European Commission (EC). 

The EU list of GI to be protected in China includes products such as Cava, Champagne, feta, Irish whiskey, Münchener beer, ouzo, Polska Wódka, Porto, Prosciutto di Parma and Queso Manchego. Among the Chinese products, the list includes Pixian Dou Ban (Pixian Bean Paste), Anji Bai Cha (Anji White Tea), Panjin Da Mi (Panjin rice) and Anqiu Da Jiang (Anqiu Ginger).

Four years after its ratification, the scope of the agreement will expand to cover an additional 175 GI names from both sides. These names will have to follow the same registration procedure as the 100 names already covered by the agreement. This includes an assessment and publication for comments.

The EC highlights that this agreement is a concrete example of cooperation between the EU and China, reflecting the openness and adherence of both sides to international rules as a basis for trade relations. It is also the result of the commitment made at the last EU-China Summit in April.

EU-China cooperation on GIs began in 2006, resulting in the registration and protection of ten GI names on both sides in 2012, the starting block for today’s cooperation.

China is a high-growth potential market for European food and drinks due to its growing middle class.There are currently over 3,300 EU names registered as either Protected Geographical Indication (PGI) or Protected Designation of Origin (PDO). A further 1,250 or so non-EU names are also protected within the EU, mostly thanks to bilateral agreements such as this one with China. In value terms, the market for EU geographical indications is around €74.8 billion (US$83 billion), and together they account for 15.4 percent of total EU food and drinks exports.

A booming market
This deal is likely to have major ramifications as China is the second most common destination for EU agri-food exports. In the 12-month period between September 2018 and August 2019, the value of these exports reached €12.8 billion (US$14 billion). China is also the second destination of EU exports of products protected as GIs, accounting for 9 percent of its value, including wines, agri-food products and spirit drinks. 

China is a high-growth potential market for European food and drinks due to its growing middle class with a taste for iconic, high-quality and genuine European products. It also has a well-established geographical indication system of its own, with specialties that European consumers could now further discover thanks to this agreement.

Last month, approval was granted for a US$299 million deal allowing the shipment of UK beef to China for the first time in 20 years. This marked the end of a ban following the outbreak of “mad cow” disease. 

However, EU goods are facing threats in the US following illegal subsidies obtained by the European Airbus aircraft manufacturer. The US now plans to impose a new 25 percent tariff on wine, whiskeys, fine cheeses and other agricultural imports from the EU.

Edited by Katherine Durrell