Remarks by Ambassador Guy Ledoux, Delegation of the European Union to the Philippines

Transcription

1 GEOGRAPHICAL INDICATIONS: TAKING THE MOST OUT OF TRADE PREFERENCES Wednesday 11 March New World Makati Manila Remarks by Ambassador Guy Ledoux, Delegation of the European Union to the Philippines Honourable Segfredo Serrano, Undersecretary Department of Agriculture; Mr Alfredo Yao, President of the Philippines Chamber of Commerce and Industry, Mr Jesus Varela, Chair Intellectual Property Committee, PCCI, friends and colleagues. It is a pleasure to be with you at this event around the topic of Geographical Indications and GSP+ - two areas where the EU stands out positively in the world and where Filipino small farmers can benefit! Let me say a few words on why GSP+ is so important and how Geographical Indications can contribute to taking the maximum advantage of it, in support of sustainable growth, job creation and reduction of poverty, in support of President Aquino's agenda for inclusive growth. First, PH-EU trade has been increasing steadily over the last years and 2014 will see a new record: My estimate is that overall trade will reach 12 billion in 2014, with EU exports (goods) to the Philippines increasing by another 20% and Philippines exports to the EU by 10% compared to last year, reaching close to 6 billion. This is not just any trade. It is in value-added products: EU imports from the Philippines include electronics, appliances, optical and

2 photographic instruments, and food and the Philippines imports from the EU include industrial equipment, medical equipment, aircraft and electronics. Moreover, this trade is supported by investments which saw, according to PH statistics, another 58% growth in 2014! EU estimates that these investments provide around 450,000 jobs. That is, until the Philippines was granted GSP+ last Christmas. The impact of this decision is noticeable already. Last month I visited, together with Secretary Domingo, DG De Lima of PEZA and colleague EU Member States' ambassadors a garment factory in Cavite which is in the process of recruiting an additional 40% staff due to stronger demand from Europe! GSP+ is not only about bringing tariffs down to 0% for around two thirds of tariff lines, it is about giving the Philippines a competitive advantage compared to other countries in the region and an opportunity to attract new investments into the country. So what have Geographical Indications got to do with this? When taking a closer look at the products granted 0% tariffs you will notice many of these being agri-food related, including for instance processed fruit and food, juice, fish, plant products, mixed fruits, and non-alcoholic beverages. Besides having better market access to the EU, you can increase your profits through Geographical Indications. 2

3 Let me explain: 'geographical indication' (GI) is a type of intellectual property right that may apply to any type of good. In essence, the GI is a distinctive sign used to identify a good as originating in the territory of a particular country, or region or locality, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin. GIs are legally tied to a particular geographical location and are open to all who satisfy the conditions for production there. Turkish carpets, Indian saris, Jasmine rice from Thailand - these, along with Cognac, Parma ham or Roquefort cheese are or could be recognised as Geographical Indications (GIs). These are names that identify high-quality, cultural heritage products as having a specific origin which makes them characteristic. The principle is well established for wines and spirits, but has potential for other sectors too. The protection of geographical indications matters economically and culturally. They can create value for local communities through products that are deeply rooted in tradition, culture and geography. They support rural development and promote new job opportunities in production, processing and other related services. Geographical Indications are common in Europe where farmers benefit from protection of products such as Bordeaux wine, Feta Cheese and Parma Ham. Such protection boosts the commercial value and thus livelihood of farmers: Prices of GI-registered products are often twice as high as non-gi products, but also support environmental and cultural diversification and tourism. The 3

4 estimated sales value of these products was 54.3 billion. Moreover, 15% of EU food and drink industry exports is GI-protected! These products are valued more than double compared to non-gi products! Can you imagine what that would mean for the Philippines? Currently your food-related exports to the EU already count over 800 million 17% more than last year! Not only will you have more access thanks to the abolition of tariffs, with GIs you could actually double the value of these products. The increased income and profits obtainable from well-known GIs can help promote the development of rural communities and encourage genuine quality agriculture and crafts. GIs can be used by any legitimate right holder independently from the market share. GIs are intrinsically linked to a defined territory and cannot be removed from it. (e.g., Honduran bananas), unlike the situation with trade marks (e.g., Chiquita bananas). Some are already known or protected globally. For example: Basmati rice or Darjeeling tea. Others may even foster the development of tourism (like the wine routes, or the Chuao cacao route in Venezuela). Furthermore, GIs could be used, in certain specific instances, for products such as Indian neem which incorporate traditional knowledge. Geographical indications are becoming a useful intellectual property right for developing countries because of their potential to add value and promote rural socio-economic development. 4

5 However, geographical names with commercial value are exposed to misuse and counterfeiting. The abuse of geographical indications limits access to certain markets and undermines consumer loyalty. Fraudulent use of geographical indications hurts both producers and consumers. The EU therefore supports better protection of geographical indications internationally due to the increasing number of violations throughout the world. I am happy that the Philippines is currently working on its own GIregulation, a process the EU strongly supports at various levels. We are actively engaging with the office of the IPOPHIL. But we do more than that. Under our trade related assistance programme we support the registration of high quality Filipino products, including Guimaras Mangoes, Davao Pomelo and Lake Sabu T'nalak weaving! This is work in progress and other examples could follow suit like the Bicol Pilinut, Cebu dried mango, Kalinga Coffee and Heirloom rice. Today's event is important as we have some key practitioners present who can discuss, with you, the advantages of the GIsystem. So let's protect those products while giving them access to our market, let's work together on that! I look forward to your questions and support in further utilising this process. Thank you. 5