The sector of European spirit drinks welcomes the political agreement reached by the European Parliament and Council, on the reform of the legislative framework of the EU’s Geographical Indications, in agricultural products, foodstuffs, wines and spirit drinks. The new rules will increase the uptake of GIs across the Union and will provide a higher level of protection, especially online, while supporting comprehensive sustainability initiatives by producer groups managing GIs to strengthen their position in the value chain.
With more than 250 different EU spirit GIs and GI spirits making up two thirds of EU spirits exports, the Geographical Indications system is of fundamental importance for Europe’s spirits’ sector. Protecting long-standing local traditions whilst guaranteeing highest production and quality standards, GI spirits are a hallmark of social, economic, and environmental sustainability.
“We greatly appreciate that the new rules will strengthen GI protection, including online, and structurally support our shared sustainability ambition. GIs spirits are a best-case example of how comprehensive sustainability approaches can grow and develop organically over time in local communities which produce, enjoy and share these high-quality products. The new rules will structurally support our continuous sustainability journey in the years ahead”, commented Ulrich Adam, Director General, spiritsEUROPE.
Other important points for the spirits sector are the reform provisions mentioned:
- the future role of GI producer groups both inside and outside the EU as well as
- the protection of GI spirits when used in foods and
- in the online environment, which is becoming increasingly important in times of increased e-commerce and online sales.
Developments
The negotiators of European Parliament and Council reached a political agreement on Tuesday, October 24 2023, to review and strengthen the geographical indications (GIs) system for wine, spirit drinks and agricultural products and improving their uptake across the EU. The new Regulation will increase the uptake of GIs across the Union and will provide a higher level of protection, especially online. This will help to further develop the EU's high food quality and standards, and ensure that our cultural, gastronomic, and local heritage is preserved and certified as authentic within the EU and across the world.
The new Regulation on EU geographical indications for wine, spirit drinks and agricultural products will strengthen and improve the existing GI system by:
- introducing a single legal framework and a shortened, simplified registration procedure: different rules on GI procedures and protection are merged for the three sectors (food, wine and spirits), resulting in a single simplified GI registration procedure for EU and non-EU applicants. This simpler legal framework, with shorter registration times, is expected to increase the attractiveness of the schemes for producers, especially in countries with fewer GIs.
- increasing protection of GIs as ingredients and online: the new rules will increase the protection of GIs used as an ingredient in a processed product and of GI products sold online. The new regulation will also protect GI names in the domain name system, obliging Member States to block from their territory domain names that may be infringing a GI name.
- recognising sustainable practices: producers will be able to valorise their actions regarding environmental, economic or social sustainability, including animal welfare. The text agreed upon by co-legislators lists a non-exhaustive list of sustainability practices as an incentive to producers. This will contribute to better protecting natural resources and rural economies, securing local plant varieties and animal breeds, conserving the landscape of the production area and improving animal welfare. A producers' group may decide to make some sustainable practices mandatory for their products. In this case, they should be included in the product specifications. On a voluntary basis, producers can also draw up a sustainability report that will be published by the European Commission.
- empowering producers' groups: the new measures will establish a voluntary system of recognised GI producer groups, to be set up by Member States. To increase the attractiveness of the system, such groups will be empowered to manage, enforce and develop their GIs to strengthen their position in the value chain.
Next steps
Technical work will continue in order to complete the legal text in accordance with the provisional agreement. When finalised, the text will be submitted to the member states’ representatives in the Special Committee on Agriculture (SCA) for endorsement. Subject to a legal/linguistic review, the regulation will then need to be formally adopted by the Parliament and the Council before it can be published in the EU’s Official Journal and enter into force (20 days after publication).
Background
Geographical indications protect the names of products from specific regions and with specific characteristics, qualities, or a reputation, against copying or fraud and certify that they were made to high standards in their region of origin. Spirit drinks and aromatized wines can be protected as Geographical Indications (GI), wines can be protected as Protected Designation of Origin (PDO), food, agricultural products can be protected as PDO, PGI and TSG. These symbols appear on product packaging, making it easier to identify these products on the market.
As of 23 February 2023, the Commission has registered over 3 500 geographical indications, while, on 1st October 2023, 3,552 names were registered. Names of products registered as GIs are legally protected against imitation, misuse and evocation within the EU and in non-EU countries where a specific protection agreement has been signed. The Geneva Act related to geographical indications represents an additional, multilateral framework for their protection.
The most recent study on GIs found that the sales value of a product with a protected name is on average double that for similar products without a certification. In addition to valorising the EU's culinary know-how, geographical indications bring clear benefits to the rural economy. However, it identified certain limits, such as complex legal structures and lengthy registration procedures, producers' position in the value chain as well as low enforcement.
In order to improve the existing system, on 31 March 2022, the European Commission put forward a legislative proposal on EU geographical indications for wine, spirit drinks and agricultural products, and quality schemes for agricultural products.
The Council’s Working Party on Horizontal Agricultural Questions (Geographical Indications and Designations of Origin) and the SCA examined the text extensively. On 8 May 2023, the SCA adopted the Council’s position.
Trilogues between the Council and the European Parliament started on 6 June 2023, with the final meeting taking place on 24 October 2023, when a provisional deal was struck between the two institutions.
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