China and the European Union (EU) have signed a new agreement on the protection of geographical indications (GIs). The China EU GI agreement is expected to significantly boost trade between the two economic giants and promote the exchange of high-quality products.
A geographical indication is a sign used on goods that have a specific geographical origin and possess qualities or a reputation that are due to that origin. Examples of GIs include Champagne, Prosciutto di Parma, and Scotch Whisky.
The China EU GI agreement will protect over 100 European GIs, including wines, spirits, and agricultural and food products, in the Chinese market. In return, the EU will offer protection to a list of Chinese GIs, including Pixian Dou Ban (Pixian Bean Paste), Anji Bai Cha (Anji White Tea), and Wuliangye (Wuliangye Liquor).
The agreement will ensure that only products originating from a specific geographical area can use the relevant GI, preventing unauthorized use and imitation. This will benefit producers and consumers alike, as it helps maintain the quality and reputation of the products, as well as promoting fair competition and preventing misrepresentation.
The China EU GI agreement is particularly significant given the size and importance of the Chinese market. China is the world`s second-largest economy and the EU`s second-largest trading partner, with bilateral trade reaching €586 billion in 2019. By protecting European GIs in China, the agreement will help to promote trade and investment, as well as encouraging the exchange of knowledge and expertise between the two regions.
Additionally, the agreement will also help to promote sustainable development and support small and medium-sized enterprises (SMEs) in both China and the EU. The agreement includes provisions to improve transparency, simplify procedures, and reduce costs, making it easier for SMEs to register their GIs and access new markets.
The China EU GI agreement is a significant milestone in the relationship between the EU and China. As the world faces economic uncertainty and geopolitical tensions, promoting trade and cooperation between the two regions is more important than ever. This agreement is a positive step towards building a more sustainable and mutually beneficial relationship between the EU and China.
