Geographical Indications (GIs) in U.S. Agricultural Trade

Geographical Indications (GIs) in U.S. Agricultural Trade

Updated July 21, 2016
Geographical Indications (GIs) in U.S. Agricultural Trade
Geographical indications (GIs) are place names used to
Many U.S. food producers are members of the Consortium
identify products that come from these places and to protect
for Common Food Names, which aims to protect the right
the quality and reputation of a distinctive product
to use common food names and legitimate food-related GIs.
originating in a certain region. The term is most often
Some U.S. agricultural industry groups, however, are trying
applied to wines, spirits, and agricultural products. Some
to create a system similar to the EU GI system for U.S.
food producers benefit from the use of GIs by giving certain
agricultural producers. Specifically, the American Origin
foods recognition for their distinctiveness, differentiating
Products Association is seeking to protect American Origin
them from other foods in the marketplace. In this manner,
Products (AOPs) in the marketplace from fraud and
GIs can be commercially valuable. GIs may be eligible for
deceptive labeling, increase the value-added for all AOPs as
relief from acts of infringement or unfair competition. GIs
a distinct food category, and create a national system to
may also protect consumers from deceptive or misleading
recognize AOPs through certification, among other goals.
labels. Examples of registered or established GIs include
Parmigiano Reggiano cheese from the Parma region of
This divide is particularly evident in the U.S. wine industry,
Italy, Roquefort cheese, Champagne from the region of the
which had largely considered some related bilateral trade
same name in France, Irish Whiskey, Darjeeling tea,
concerns to have been addressed following bilateral
Florida oranges, Idaho potatoes, Vidalia onions,
negotiations in the 2006 U.S.-EU Agreement on Trade in
Washington State apples, and Napa Valley Wines.
Wine. Among the key provisions in the agreement were
measures regarding the U.S. industry’s use of 16 “semi
Why Are GIs a Policy Concern?
-
generic” names of wine that originate in the EU (including
The use of GIs has become a contentious international trade
Sherry, Chablis, and Chianti) as well as the use of certain
issue, particularly for U.S. wine, cheese, and sausage
traditional labeling terms (such as Chateau and Vintage).
makers involving trade between the United States and the
Some in the U.S. wine sector continue to argue that the
European Union (EU). GIs are among the agricultural
EU’s GI registration process lacks transparency, often
issues that have been raised in the ongoing Transatlantic
results in substantial bureaucratic delays, and is perceived
Trade and Investment Partnership (T-TIP) negotiation, a
as discriminating against non-EU products, while others are
potential free trade agreement that the United States and the
pushing for a multilateral register for wines and spirits.
EU are negotiating. GIs were also addressed in the Trans-
Pacific Partnership, a proposed free trade agreement
Laws and regulations governing GIs differ between the
between the United States and many Asia-Pacific countries.
United States and EU, which further complicates this issue.
In the United States, GIs are generally treated as brands and
GIs are an example of intellectual property rights (IPR),
trademarks, whereas the EU protects GIs through a series of
along with other types of intellectual property such as
established quality schemes. These approaches differ with
patents, copyrights, trademarks, and trade secrets. The U.S.
respect to the conditions for protection or the scope of
Trade Representative’s 2016 Special 301 Report on the
protection, but both establish rights for collective use by
status of global IPR protection and enforcement outlines
those who comply with defined standards.
U.S. concerns related to the treatment of GIs in the U.S.-EU
trade negotiations and other initiatives with Canada, China,
How Does the U.S. Protect GIs?
Costa Rica, El Salvador, Japan, Morocco, and others.
In the United States, GIs generally fall under the common
Some U.S. food manufacturers have long expressed their
law right of possession or “first in time, first in right” as
concerns about EU protections for GIs, which they claim
trademarks, collective, or certification marks under the
are being misused to create market and trade barriers. Some
purview of the existing trademark regime administered by
view the use of common or traditional names as generic
the U.S. Patent and Trademark Office (PTO) and protected
terms and the EU’s protection of its registered GIs as a way
under the U.S. Trademark Act (15 U.S.C. §1051 et seq.).
to monopolize the use of certain wine and food terms and as
The act provides for the registration of “certification marks
a form of trade protectionism. Specifically, they worry that
including indications of regional origin.” In addition,
the EU is using GIs to impose restrictions on the use of
labeling requirements for wine, malt beverages, beer, and
common names for some foods—such as parmesan, feta,
distilled spirits are under the jurisdiction of the Alcohol and
and provolone cheeses and certain wines—and limit U.S.
Tobacco Tax and Trade Bureau at the U.S. Treasury.
food companies from marketing these foods. Complicating
this issue further are GI protections afforded to registered
PTO defines GIs, consistent with the World Trade
products in third country markets. This has become a
Organization’s (WTO) Agreement on Trade-Related
concern for U.S. exporters following a series of recently
Aspects of Intellectual Property Rights (TRIPS), as
concluded trade agreements between the EU and countries
“indications that identify a good as originating in the
that are also major U.S. trading partners.
territory of a member, or a region or locality in that
territory, where a given quality, reputation or other
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Geographical Indications (GIs) in U.S. Agricultural Trade
characteristic of the product is attributable to its geographic
Europe, Asia, and Latin America. The United States holds
origin.” According to PTO, a GI can take many forms,
nearly 700 “Names of Origin” registrations for wine.
including a geographic place name (e.g., “Napa Valley”), a
symbol, the outline of a geographic area, a color, or
Table 1. Name Registrations Under EU’s GI Programs
“anything else capable of identifying the source of a good
or service.” GIs are protected under U.S. trademark laws
Product Category
Total GIs
EU GIs
Non-EU GIs
against unfair competition and trademark infringement
Food/Agriculture
1,341
1,320
21
regardless of whether they are registered with PTO.
Wine
2,885
1,750
1,135
According to PTO, GIs “serve the same functions as
Spirits
336
334
2
trademarks, because like trademarks they are: source-
Total
4,562
3,404
1,158
identifiers, guarantees of quality, and valuable business
interests.” Establishing a product based on its geography
Source: CRS data compilation from Database of Origin and
can be complicated, involving establishing a trademark or a
Registration (agricultural products and foodstuffs), “E-Bacchus”
brand name through an extensive advertising campaign.
database (wine), and “E-Spirit-Drinks” database (spirits), available at
Limited information specific to food and agricultural
http://ec.europa.eu/agriculture/. Data are as of May 2016.
products regarding the application process on certification
or collective marks is available from PTO. PTO does not
Among the total EU registrations for food and agricultural
protect geographic terms that are considered “generic” or
products, more than one-fourth are fresh and processed
“so widely used that consumers view it as designating a
meat and fisheries products, and 18% are for cheeses
category of all of the goods/services of the same type,
(Figure 2). Another 28% of registrations are for fresh and
rather than as a geographic origin.” PTO does not provide
processed fruit and vegetable products—including grapes
oversight of any applicable standards or standards and does
and other crops that may be used in certain wines and
not maintain a special register for GIs in the United States,
spirits—as well as olives and nuts.
aside from the PTO’s trademark register—the Trademark
Electronic Search System.
Figure 2. Food and Agriculture GIs, by Sector
How Are GIs Protected in the EU?
In the EU, a series of regulations governing GIs was
initiated in the early 1990s covering agricultural and food
products, wine, and spirits. The regulations protect product
names from misuse and imitation of agricultural products
for which an intrinsic link exists between the product or
foodstuff’s characteristics and geographical origin.
The EU laws and regulations cover three EU-wide quality
labeling schemes: Protected Designation of Origin (PDO),
Protected Geographical Indication (PGI), and Traditional
Specialties Guaranteed (TSG). PDOs cover “agricultural
products and foodstuffs which are produced, processed and
prepared in a given geographical area using recognized

know-how.” PGIs are similar except that “at least one of the
Source: CRS data compilation from Database of Origin and
stages of production, processing or preparation takes place
Registration (agricultural products and foodstuffs), as of May 2016.
in the area.” TSGs highlight “traditional character, either in
the composition or means of production.” Registration
How Are GIs Protected in the WTO?
markers (below) help protect product names from imitation.
GIs are protected by TRIPS, which sets binding minimum
Figure 1. EU Quality Registration Markers
standards for IP protection that are enforceable by the
WTO’s dispute settlement procedure. Under TRIPS, WTO
members must recognize and protect GIs as intellectual
property. The United States and EU countries are
signatories of TRIPS and are committed to providing a
minimum standard of protection for GIs (i.e., protecting GI
products to avoid misleading the public and prevent unfair
competition) and an “enhanced level of protection” to wines

and spirits that carry a geographical indication, subject to
More than 4,560 product names are registered and protected
certain exceptions.
in the EU for foods, wine, and spirits originating in EU
More detailed information is available in CRS Report
member states (about 3,400 registrations) and also in other
R44556, Geographical Indications in the Transatlantic
countries (another 1,160 registrations). See Table 1. Most
product registrations under the EU’s system originate in the
Trade and Investment Partnership (T-TIP) Negotiations.
EU—mostly Italy, France, and Spain—however, countries
Renée Johnson, Specialist in Agricultural Policy
outside the EU have also registered product names under
the EU’s quality scheme, including products from Eastern
IF10188
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Geographical Indications (GIs) in U.S. Agricultural Trade

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