the need for gi policy in south-eastern european countries

FAO Technical Seminar

Quality food products linked to geographical origin

The need for GI policy in The need for GI policy in

SouthSouth--eastern European countrieseastern European countries

Barna Kovács Ph.D.3-4. December 2008.

Belgrade, Serbia


Content of the Presentation

The History of Protection of GIs

The Definition of GIs

The EU oriented CEE

Final Remarks

4FAO Technical Seminar

Geographical Indications in Geographical Indications in International LawInternational Law

1. The Paris Convention for the Protection of Industrial Property (1883)173: AL, BIH, BG, CZ, EST, HU, LV, LT, MK, MD, CG, RO, PL

2. The Madrid Agreement on Indications of Source (1891)35: BG, CZ, HU, CG, PL, MD, SRB, SK

3. The Stresa Convention (1951)4. The Lisbon Agreement on Appellations of Origin

(1958)26: BG, CZ, GE, HU, CG, MD, RO, SRB, SK

5. The Olive Oil Agreement (1963)40: HR, SRB, CG, EU

5. The EU – Australia Wine Agreement (1994)6. Switzerland-EU, South Africa - EU agreements7. The TRIPS Agreement (1994)

5

The GI in TRIPThe GI in TRIPSS agreementagreement

According

to

the concept of Geographical Indication defined in the TRIPS Agreement (Art. 22.1), GIs

are

not necessarily:

•

geographical names

•

protected by any special means

of legal protection (e.g.

legal provisions out of the usual laws on business practices, trademarks, protection against misleading, unfair competition, or even legal provisions implementing the minimum requirements of the section on GIs of the TRIPS Agreement)

•

recognized by any special institutional frame.


6

SINERSINER--GIGI TAXONOMY OF DIFFERENT TYPES TAXONOMY OF DIFFERENT TYPES OF PRODUCTS LINKED TO THE TERRITORYOF PRODUCTS LINKED TO THE TERRITORY

FAO Technical SeminarSINER-GI 7th Framework EU Project: www.origin-food.org

7

Geographical IndicationsGeographical Indications

• Generic

Indications

• Appelation

d’Origine

• Potection

by

Competition

Law

• Individualized

Geographical

Indications


8

Recognized Protection of Recognized Protection of Geographical Indications in Geographical Indications in

EC RegulationsEC Regulations1. Spirits: No. 1576/1989

2. Agro-food products: No. 2081/1992

3. Wines: No. 1493/1999

4. Agro-food products: No. 1898/2006


9

The scope of protection in EUThe scope of protection in EU1. To stop the direct and indirect general commercial use of the

geographical name.2. To stop any misuse, imitation or evocation, even if the true

origin of the product is indicated; or if the protected name is translated or accompanied by an expression such as “style”, “type”, “method”, “as produced in”, “imitation” or similar;

3. To stop other false or misleading indication as to the origin, nature or essential qualities of the product (on the inner or outer packaging, advertising material or documents relating to the product concerned, and the packing of the product in a container liable to convey a false impression as to its origin);

4. To stop any other practice liable to misleading the consumer as to the true origin of the product


10

The EU oriented CEE countriesThe EU oriented CEE countries

10+2 new member states

in the moment of accession:

-

„Harmonized”

EU legislation-

„Controversial”

national legislation

-

„International protection”


11

The The market economymarket economy oriented oriented CEE countriesCEE countries

1.

What was expected?–

The valorification of the good agro-food potential

2.

What was achieved?–

Fragile and totally

open economy

3.

What kind of failures? –

The role of individual

–

The „institution”

building


12

The foreign direct investments entered -contrary to expectations- into industries

• with a safe home market (e.g. tobacco industry),

• single product lines ( e.g. sugar industry),

• standard technology ( e.g. starch industry),

• mono- or oligopolistic position (e.g. brewery industry).


13

The new member statesThe new member states and the accessionand the accession

Expectations:Stability of agricultural policies Stability of markets Stability of incomes

The reality2003 CAP reform / Single Payment SchemeLiquidity problemsSerious marketing difficultiesContinuous review of the CMOs(‘silent reforms’)

SugarWinesFruits and vegetablesCereals intervention

Partial or full decoupling of top-ups in 2007Health Check & budgetary review


14

The context of accessionThe context of accession

General level:•

Quality, policies, agro-food markets, trends, sectors.

•

Theoretical approaches: supply chain, rural development, environment, consumers/citizens

Specific level:•

Collective action and actors

•

Theoretical approaches: impact of GIs on special protection schemes


15

ParadigmsParadigms


•

Internationalization versus regionalization–

Regionally differentiated, local products

–

Regional trademarks, certification marks, signs of origin etc.

•

Modernization versus rural development–

The „region”

is not just a physical place

–

The culinary knowledge and cultural code•

„Special quality”

versus „quality”

–

Consumer oriented quality dimensions versus product, production, control oriented quality dimensions

16

Disagreement on consensusDisagreement on consensus

•

How to measure performance?•

Is there a strong relationship between land reform and agricultural performance?

•

Are there economies of scale in agriculture that put family farms at a disadvantage in comparison

to larger private farms? Are economies of scale really the main determinant of farm size?

•

Do family farms perform better than corporate farms?

•

How important are the institutions?


17

Approaches of interpretation and Approaches of interpretation and protection of GIprotection of GI

Ruptures:•

Case

Law (competition law) against Pre-

definition (appellation de origin)•

Nordic countries versus southern countries (Anglo-Saxon versus Roman)

•

Communism

versus capitalism (the property of everybody –

the property of

nobody)


18

The need for a Public PolicyThe need for a Public Policy

1.

The link between OLPs

and the supply chain.

2.

The link between OLPs and rural

development.3.

The link between OLPs

and consumers.

4. The link between OLPs

and

environment.


19

Collective action in CEECollective action in CEE??


20

HungaricumHungaricumTrade Mark Commercial

MarkQuality

Certification Mark

Origin Certification

Mark

Quality and origin

Certification mark

Protected Geographical

Indications

©Hungaricum

Pick-SzegedHungarian

Salami


Salami


Salami


Salami


Salami


Salami

Szegedi Fűszerpaprik

a Őrlemény

Szegedi Fűszerpaprika Őrlemény


?? Szegedi

Fűszerpaprika Őrlemény




21

EU EU CertifiedCertified AgroAgro--foodfood GIGI ProductsProducts in the in the CEECEE

The Council Regulation covers 2 approaches:

1. Protected Designations of Origin (PDO):originate in the geographical area,a specific quality essentially or exclusively due to a particular geographical environment,production, processing and preparation in the defined geographical area.

2. Protected Geographical Indications (PGI):originate in that geographical area,a specific quality, reputation or other characteristic must be attributable to that geographical environment,production and/or processing and/or preparation in the defined geographical area.


22

EU EU CCertifiedertified AgroAgro--food Products in food Products in the CEEthe CEE

The Council Regulations covers 2 more approaches -beside the protected GIs- of the quality:

1. TRADITIONAL SPECIALITIES GUARANTEED

Traditional specialty,the special quality is not linked with geographical area.

2. ORGANIC FARMINGOrganic production,a specific quality linked with the production.


23

The The „„PaprikaPaprika”” casecase

•

Free-liberalized market•

Product definition

•

Collective action•

Institution building

•

Controlling authority•

Controversial national legislations

•

Controversial national statistics


24FAO Technical Seminar

Szegedi PaprikaSzegedi Paprika

25

The The „„SalamiSalami”” casecase

•

Monopolistic market•

Product definition

•

Protection levels•

TM vs. GI

•

PDO vs. PGI•

The Hungaricum


26

Some aspects of distortionsSome aspects of distortions

•

„Property rights”•

Product definition

•

Raw material –

linked to origin•

Legal background–

Name use

–

Fito-sanitary-veterinary•

Information flow

•

Collective action•

Policy and Institution building

•

Enforcement

-

control


27

Final remarksFinal remarks•

During the transition period for the market economy the NMS were not able to „rediscover the possibilities” given by GI product supply chains.

•

The impact of enlargement on certain markets has not been unambiguously positive.

•

There are a few hundred thousands farmers in the new member states living in a GI area without market access.

•

There is a need for a longer term policy outlook in the EU to give (less-favoured) farmers the certainty they need to run their „businesses” competitively.

•

Rural development must be involved in the establishment of new institutions (rules-policies) on the market of GI products.

•

The governamental policy must provide an opportunity for agricultur-, rural development-, market and consumer policy harmonization regarding the recognized GIs.



…the development of the agro-food sector, the enhancement of the small and medium-size

enterprises’

competitiveness is not necessarily or exclusively conditioned by large-scale

industrial

investments.

We would rather emphasize that traditions and habits are part of cultural heritage, therefore they change extremely slowly, allowing only scarce possibility for innovation. However,

their potential is huge, which can be explored, if an adequate market approach

accompanies them.

the need for gi policy in south-eastern european countries

Education