The EU-India FTA can open up the European market for India, but to use GIs effectively, much work needs to happen domestically
The EU-India FTA can open up the European market for India, but to use GIs effectively, much work needs to happen domestically

Geographical Indications amidst the EU–India FTA: An underexploited opportunity

In the ongoing EU-India Free Trade Agreement (FTA) negotiations, Geographical Indications (GIs) have emerged as a pivotal and contentious issue. 

GIs serve as an intellectual property protection for products that have a specific geographical origin and possess qualities, reputation, or characteristics inherent to that location. The contention arises over the extent of protection, enforcement mechanisms, and the impact on market access for non-GI products. Producers with a GI tag can name their products after the product’s geographic origin, while other producers are restricted from using that name for sales. For example, in the European Union, a sparkling wine is allowed to be named and marketed as “Champagne” only if it is produced in a defined geographical region of France by a process of double fermentation from grapes grown in the Champagne vine growing region. Even if a German manufacturer produces a sparkling wine that is technically similar, they can’t use the word “Champagne”. 

Thus, GI usage allows for the localisation of economic benefits to a specific geography, by creating a unique market niche for products tied to a specific geographical origin, thus distinguishing them from goods produced elsewhere. This can provide an economic boost to the enterprises of that region. 

GI usage allows for the localisation of economic benefits to a specific geography, by creating a unique market niche for products tied to a specific geographical origin, thus distinguishing them from goods produced elsewhere. This can provide an economic boost to the enterprises of that region. 

Many GI-protected products are produced using traditional production methods that are tied to the cultural practices of the region. For Champagne, the authenticity of the product derives from the traditional winemaking practices of that region, which is crucial for maintaining its prestige and economic premium. The flow of greater economic value encourages the preservation of those traditional methods, which in turn contribute to increasing the economic value. Thus, the resultant economic benefits can also help preserve the cultural traditions of that geography. 

GI tags in the EU–India FTA 

The EU has been an advocate for stronger GI regulations across the world. The EU has been negotiating for greater recognition and protection of its GIs, not just with India, but also with China, Australia, and New Zealand. The EU does this because of the potential for GIs to boost their domestic industry. A European Commission report estimated that the sales value for the EU’s GI-protected agri and food products, to be about 75 billion euros in 2017. Wines accounted for 51 percent of this value, agricultural products and foodstuffs for 35 percent, spirit drinks for 13 percent and aromatised wine products for 0.1 percent. Notably, a fifth of the value was arising from exports. 

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