Origin products and geographical indications in South countries : Some stakes and trends

(1)

Origin

products

_products

and

_and

Geographical

indications

_indications

in

South

countries:

Some stakes and trends

Denis Sautier, CIRAD France Denis Sautier, CIRAD France

(2)

Plan

1. A few definitions

2. From Origin Products to GI: Why ?

3. GI legitimacy : Diversity of stakes and

justifications

4. Three exemplary cases :

• Tequila case (Mexico) • Coffee (Costa Rica)

• Rooibos (South Africa)

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Geographical Indication (GI)

WTO / TRIPS Agreement (Art. 22.1):

“Geographical indications are indications

which identify a good as originating in the territory of a Member, or a region or locality in that territory, where a given

quality, reputation or other

characteristic of the good is essentially attributable to its geographical

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Taxonomy of different types of

products linked to the territory

GI Products Recognised GI Products Origin Products (Belletti, Marescotti 2005)

(5)

Taxonomy of different types of

products linked to the territory

GI Products Recognised GI Products Origin Products (Belletti, Marescotti 2005) OP R.GI GI - product specificity - resource specificity - history - shared dimension - name - label - protection scheme

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Terroir

‘

Multifactorial system in which the plant,

the human practices and the environment

interact in order to produce an unique

product’

(Salette et al., 1998)

«

Collective production knowledge

» built

through history

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2.

2. From

_From

OP to GI

_{OP to GI}

:

_:

Why

_Why

?

_?

An

accelerated

process of widening,

recognizing

and

protecting

GI:

•

• regardingregarding countries countries …… •

• regardingregarding productsproducts ……

But :

•

• stillstill a a veryvery unequalunequal NorthNorth--SouthSouth balancebalance

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‘

Products

x Place x

People

’

:

worldwide

evidence

Multiplicity and anteriority of Multiplicity and anteriority of

Origin

products

throughout the world : Africa, throughout the world : Africa, Asia, Latin America

Asia, Latin America

National markets : Origin = National markets : Origin = ‘‘proxyproxy’’ for trust for trust

•

• Vietnam : 265 Vietnam : 265 «« local specialty productslocal specialty products »»

International markets : place International markets : place may meanmay mean

more than provenience.

•

• Case of Coffee : Origin = Case of Coffee : Origin = ‘‘proxyproxy’’ for aroma, nonfor aroma, non-

-standardized quality attribute.

standardized quality attribute. PremiumPremium

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South GI

recognition

_recognition

/

_/

protection:

_protection:

Why

?

_?

1.

1. SpecificSpecific economic stakes for export economic stakes for export productsproducts

2.

2. PresentPresent: liberalization and DE: liberalization and DE--protection protection

process

WTO (2000 WTO (2000 -- 2006 deadlines)2006 deadlines)

«« Fame without protectionFame without protection »» = risks != risks !

Frauds and usurpations Frauds and usurpations

Intense regional names trademarkingIntense regional names trademarking in EUin EU--US-US-Jap Jap

3.

3. Global markets : strategic identity advantageGlobal markets : strategic identity advantage

Aiming at premium specialty marketsAiming at premium specialty markets

Mainly exportMainly export--orientedoriented

4.

4. Recent rural policy interestRecent rural policy interest

by : Govtsby : Govts ; NGOs ; .. Communities? ; NGOs ; .. Communities?

5.

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GI

and global South:

_{and global South:}

political

and

institutional

involvment

DCDC participation in WTO GI participation in WTO GI negociationsnegociations

StakeStake: : reciprocityreciprocity : international : international recognitionrecognition

WTO:WTO: «« freedom of interpretationfreedom of interpretation »»

DebatesDebates on on additionaladditional protection :protection :

•

• notnot a a NorthNorth--South,South, ratherrather a « new » vs. a « new » vs. «

« oldold worldworld» » dividedivide

•

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3.

3. OP

_OP

and

_and

GIs

_GIs

Legitimacy

_Legitimacy

:

_:

an

overview

of

their

diversity

Question is

not WHETHER

RGIs are

growing wordwide, but HOW

?

Which

actors

,

which

rules

?

For

which

stakes

/objectives

and

with

which

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GI stakes

/

_/

justifications : E.U.

_{justifications : E.U.}

E.U. :

4 GI justification

structures

(Sylvander et al. 2005)

1.

1. Tool against fraud and counterfeitingTool against fraud and counterfeiting 2.

2. Supply chain regulationSupply chain regulation 3.

3. Rural developmentRural development 4.

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EU: Key success factors

EU: Main GI competitivity factors EU: Main GI competitivity factors (Barjolle et al., (Barjolle et al., 2001)

2001)

1.

1. Product SpecificityProduct Specificity

•

• Typicality, price, taste, convenience, symbolicTypicality, price, taste, convenience, symbolic

2.

2. Coordination Coordination

•

• SpecificationsSpecifications •

• governance structure, quality management, research, governance structure, quality management, research,

lobbying ability..

3.

3. Market attractiveness Market attractiveness

4.

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(15)

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North

–

_–

South

_South

distinctions

_distinctions

:

_:

The role of producers’ organisations

Consumers’ expectations

Garantee systems

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4.

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1. Tequila

(Mexico)

_(Mexico)

JustificationJustification

•

• Lisboa Arrangement, 1958Lisboa Arrangement, 1958

MarketMarket: :

•

• x 8 in 20 x 8 in 20 yearsyears ; export boom; export boom

Production Production RulesRules

•

• NormNorm (1949), PDO (1974) (1949), PDO (1974) andand adaptationsadaptations

•

• BottlingBottling stillstill outsideoutside PDO areaPDO area

Institutions Institutions andand governancegovernance

•

• ConsejoConsejo ReguladorRegulador: : downwardsdownwards--driven (distillers)driven (distillers)

•

• 4 4 companiescompanies : 4 = 67%: 4 = 67%

•

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2.

2. Coffee

Coffee

(Costa

Rica

)

WorldWorld:: overproductionoverproduction, , priceprice collapses, collapses,

specialty

specialty premium, premium, differenciationdifferenciation strategiesstrategies

R.GIR.GI: : thethe mostmost sustainablesustainable differenciationdifferenciation ??

Costa Costa RicaRica:: National National RuleRule (1950’s) vs/ (1950’s) vs/ FreeFree

Trade

Trade AgreementAgreement

•

• RGI justification : RGI justification : keepkeep thethe premium premium

•

• MarketMarket = export= export

•

• RulesRules andand institutions : 2 coinstitutions : 2 co--existingexisting approachesapproaches

«« Country GICountry GI » » –– cfcf. . ColombiaColombia

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13 5 12 11 4 3 14 6 2 1 8 7 15 16 17 18 10 9

Environmental

criteria

for

GI area

delimitation

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0 1 2 3 4 5 AROMA BODY ACIDITY SOUR FLORAL COCOA CUP DOTA OROSI

Product

typicity

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3.

Rooibos

_Rooibos

(

South

Africa

)

JustificationJustification •

• EndemicEndemic speciesspecies withinwithin ‘‘fynbosfynbos’’ ecosystemecosystem

•

• CancelationCancelation ofof TrademarkTrademark (USA)(USA)

MarketMarket boom boom

• • exportsexports 60% 60% • • 20032003--2005: +120% ?2005: +120% ? StructureStructure •

• 1 dominant 1 dominant enterpriseenterprise ((previouslypreviously public)public)

•

• 3% 3% smallsmall producersproducers

Collective rulesCollective rules ??

•

• DependingDepending to to externalexternal andand internalinternal threatsthreats

•

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Wraping up the 3 cases

:

Market

Market RationaleRationale GovernanceGovernance

Tequila

Tequila ExportExport NameName ++ market market excluivity excluivity Worldsize Worldsize marketers marketers Coffee

Coffee ExportExport 90% 90%

Market Market premium

premium Interprofession,_CooperativeInterprofession,_Cooperative

Rooibos

Rooibos ExportExport 60% 60%

Usurpation

Usurpation Transition Transition process process

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GI stakes/ justifications in South countries:GI stakes/ justifications in South countries:

1.

1. Name reservation (vs. usurpatedName reservation (vs. usurpated or trademarkedor trademarked geographical

geographical names)names)

2.

2. Marketing tool -Marketing tool - mainlymainly externalexternal

3.

3. BiodiversityBiodiversity conservation toolconservation tool

4.

4. TraditionalTraditional knowledgeknowledge andand communities (ethics)communities (ethics)

5.

5. Quality insurance Quality insurance

6.

6. CollectiveCollective initiatives for rural development initiatives for rural development

5. Conclusions

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0 1 2 3 4 5 I.P.R. CO-ORD SYMBOLIC RURAL DEVPT QUAL. INSUR ENVIRT OTHER Case B Case A

GI DIMENSIONS (example)

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IPIP aspect:aspect: first, but not alone ?first, but not alone ?

Specifications ?Specifications ?

Role of the state ?Role of the state ?

•

• Strong states / Weak states Strong states / Weak states

•

• Administrative procedures for registration Administrative procedures for registration

RuralRural development tool ?development tool ?

Negociation of products’ symbolic valueNegociation of products’ symbolic value

GI stakes

/

_/

justifications:

_{justifications:}

open questions

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Fonctions discriminantes canoniques Función 1 (91.12%) 20 10 0 -10 Función 2 (8.87%) 8 6 4 2 0 -2 -4 Guatemala Honduras Colombia 3 2 1 Total Country C H G C 112 0 0 112 H 0 320 0 320 G 0 0 98 98 Results of classification

100.0% of samples correctly classified N°

samples

Prevision

Control

mechanisms

:

Chemical

trace

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Produit 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Log ( 1/R) 1100 1300 1500 1700 1900 2100 2300 2500 Longitud de onda (nm) Comparison w/ spectral databases : interpretations / predictions O N C H 3 N N N H₃C O C H 3 Chemical components Ex : Caféine Absorved energy

Infra red light

Qualitative analysis Quantitative analysis

F. Davrieux CIRAD-CP