The P.G.I.

The P.G.I.
• What is a GI?
• Why making a PGI?
• Agen guidelines
• Agen P.G.I.
P G I toda
today
• Some comments
GI: ideal tool to bring local savoir faire into the market
What is a
Geographical Indication?
What is a GI?
TRIPS Agreement, part of the 1994 GATT/WTO Uruguay Round of Negotiations
“Trade-Related aspects of Intellectual Property rights”
A legal tool to protect names of goods when they represent
Article 22
Protection of Geographical Indications
1. Geographical indications are, for the purposes of this Agreement,
Specific
• Qualities
• Reputation
• Other characteristics
indications which identify a good as originating in the territory of a
geographical
Member, or a region or locality in that territory, where a given quality,
origin
reputation or other characteristic of the good is essentially attributable
to its geographical origin.
©
Examples of GIs
Food
products
Other
traditional
products
Roquefort (France), Tequila (Mexico), Argan
oil (Morocco), Café de Veracruz (Mexico), Café
de Colombia (Columbia), Parma ham (Italy),
Parmigiano Reggiano cheese (Italy), Agen
prunes (France), Basmati rice, Darjeeling tea
(India), Long-Jing tea (China), Antigua coffee
(Guatemala), Kona coffee (HW, USA),
Champagne (France), Napa Valley wines (CA,
USA), etc.
Kilim carpets (Turkey), Thai silk
(Thailand), Murano cristal (Italy) etc.
Quality and characteristics linked
to geographical origin
Argan Oil tree,
tree, Morocco
Antigua Coffee area,
Guatemala
©
©
1
Socio‐‐economic rationale behind GIs
Socio
Common elements Producers
 Market geographical origin through differentiation
 Turn commodities into “niche products”
 “Capture” value added and increase revenues
Consumers
 More conscious and demanding (quality, health, methods
of production, environmental concerns)
 Ready to pay a premium price (GIs increase market
transparency and reduce transaction costs)
GI
Markets
 Trade regulations have been shifting towards traceability
©
GIs bring added value to
producers
GIs bring added value to
consumers
 GIs guarantee production methods,
methods, authenticity
 Antigua Coffee (Guatemala)
and quality to consumers
Average world price of coffee grains: 0.50 $/lb
Average world price of Antigua coffee grains: 1.5 $/lb
Year 2002
• Study of European Consumers by the EC in 1999:
 Cheese and Wine and Prunes from France
Cheese retail price
€/kg
P.G.I.
cheeses
Wine price
€/liter
(1)
P.G.I.
wines
Prunes price
Imports into Europe €/kg
(2)
(3)
 +230 %
 43% ready to pay an extra 10% for GI products
 8% ready to pay up to an extra 20% for GI
products
Agen P.G.I.
 +30 %
 +46 %
All cheeses
Other origins
4,19
10,42
 3% ready to pay up to an extra 30% for GI
products
2,90
Other wines
8,11
©
1,99
1,28
(1)
Based on retail benchmark SECODIP, 2002
(2)
Based on exports 1999-2001
(3)
Based on imports 2008-2010
Source : MAAPAR, FranceAgriMer, UbiFrance, INAO, BIP
©
Comparison between GI and
trademark
Trademark
≠
©
Comparison between GI and
trademark
Geographical
indication
Trademark
Area of production not
relevant
Production rooted in a
region
Emphasis on the company
owning them
Emphasis on the origin of
the product
Protection only available to
the company that owns
the brand
Protection available to all
producers of the area who
meet the guidelines
©
≠
Geographical
indication
Exclusive Right bought by
first petitioner
Exclusivity granted by Gov’t
Gov t
upon evidence of longlong-time
reputation and specificity
and traceability
Limited--inLimited
in-time validity
with renewal fee
Permanent right – no
renewal fee
©
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Examples of GI misuses
around the world
Better protection of Gis
needed!
Increasing abuses of GI products
• Undermine
Unde mine the reputation
ep tation of famous
famo s local products
p od cts
• Result on devastating effects for producers
• Mislead the consumers as to the identity of the goods
• Chase away demanding consumers
• Cases of abuses exist all around the globe
•
•
•
•
•
•
•
•
IN Kasmati, Jasmati Rice
IT Parmesan cheese
IT Parma Ham
ES Turrón de Alicante
ES Manchego cheese
FR Roquefort cheese
MX Tequila
etc.
USA
USA
Canada
Mexico
Argentina
New Zealand
Israel
©
©
www.origin-gi.com
• OriGIn
ORganization for an International Geographical Indications Network
– a NGO launched in June 2003 by producers from all over the world
• Headquarters in Geneva (Switzerland)
•
President from Mexico, Vice-presidents from Africa (North, Sub-Saharian),
Asia (China, India), America (North, Central, South), Europe (Western,
Eastern)
• An International organization of GI producers:
– Over 350 organizations of producers from 40 countries
©
Why making a P.G.I.
for Agen Prunes?
About Agen Prunes
• Why making a PGI?
AGEN PRUNES DOMINATE THE FRENCH DOMESTIC MARKET
• Misleadings
35 000
• Agen P.G.I.
P G I toda
today
30 000
• Some comments
25 000
Imported Prunes
20 000
Agen Prunes
15 000
10 000
5 000
2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
1975
1973
1971
1969
1967
1965
0
1963
• Agen guidelines
tonnes
3
Why making a P.G.I.?
Why making a P.G.I.?
MAIN GROWTH IS WITHIN THE E.U.
but with increasing interests in third countries
IN FRANCE, AGEN PRUNES ENJOY ENVIABLE
REPUTATION
70 000
tonnes
• What does the town «Agen» remind you?
60 000
Answers:
A
- prunes
- rugby
- sun, warmth
- the South
50 000
Export
40 000
30 000
French market
20 000
10 000
2010
2005
2000
1995
1990
1985
1980
1975
1970
1965
0
84 %
16 %
10 %
9%
SOFRES POLL 1996
SAMPLE OF 1051 FRENCH
Legal conflicts on the name
Legal conflicts on the name
from Argentina…
Forged pack found in Algeria
What we do against misleadings
How the P.G.I. works
In Europe
P.G.I.
 Legal protection of PGI since 2002, promotion of PGI/PDO
Out of Europe
 Lobbying with multilateral WTO negotiators (OriGIn)
 Protection initiatives in producing countries (Chile and Argentina)
 Defence and prevention within consuming countries:
 Certification mark in Algeria, enforced 2011
 Legal protection by EU in bilateral agreements e.g. with
China, Corea, Peru, Colombia…
•
•
•
•
The guidelines include:
Geographic area
Variety « d’Ente »
Guarantees of traceability
Main identity requirements:
– Annual pruning, minimum size and max defects
– Ripeness, harvest in several passes
– Compliance with specific standards
• Control procedures
4
Quality Layout
PGI/PDO legal keeper
Validates Guidelines
Mandates Certification Body
Decides penalties
INAO (Gov’t)
Food Certification
Body
Independent and certified EN45011
Controls the methods and practices of
Operators and Syndicat (external)
Enforces penalties
Guideline author and bookkeeper
p
Registers and supervises internal controls
Keeps and communicates statistics
Our P.G.I. today
INDUSTRY MASSIVE SUPPORT TO THE APPROACH
•
94% of French production within area
• 1400+
1400 producers,
d
i.e.
i 98.8%
98 8%
• 100% of the field-buying packers
7 Grower
Organizations
Ensure internal control with their 15
field technicians
1400 growers
Commit with the Syndicat
Comply with Guidelines
Record their operations
• 80% of the farm-door sellers
(less than 0.5% of sales as a whole)
20 packers
Our P.G.I. today
Geographical Indication Specificities
AN OUTPUT GUARANTEE
• The PGI was registered in 2002
• It covers 94% of the French production, which is 97% of the
European production. However an average of 60% of the
production only is agreed to receive the denomination as
meeting the quality requirements
• The PGI does not directly increase prices but saves an image
of difference
• The French market absolutely requires the authentic denomination
«Pruneau d’Agen»
• Agen Prunes reputation is growing over other EU and non-EU
markets as a high quality segment
• Unlike a trademark, which belongs to a company, a G.I. is an
inalienable public asset linked to a territory: a GI can neither be
sold nor leave its territory (see Napa Valley case)
• A Gov’t certified control body, which is independent to operators,
guarantees that each operator fulfills the traditional production
rules as registered in the Guidelines
• Each operator can use his own trademark within a Geographical
Indication
• The producers have succeeded in linking the market with their terroir
Examples associating
Brand + GI
G.I. stakes
• Our World is more and more an open one. International trade is
developing. Traditional quality values, which local quality
products are part of, are threatened of being dissolved and killed
by standard or low quality cheaper products
• GI is a tool for maintaining a common asset which can be
accessed by farmers, craftsmen and small businesses
• GI does not impede free trade. It just clarifies the identity of
differentiated products by preventing consumers of being
confused
• GI fits well with the modern need of quality differentiation
5
THANK YOU
www.origin-gi.com
Christian Amblard, May 2012
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