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The impact of protecting EU Geographical Indications in trade agreements

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  • Huysmans, Martijn
  • Curzi, Daniele

Abstract

To protect distinctive regional foods, the European Union (EU) has a legal scheme covering over 1,000 Geographical Indications (GIs) for food items such as Parma ham and Gouda Holland. Using Eurostat Comext export data 2004-2018 for cheeses at the CN8 level, this paper tests whether past protection of GIs through 11 Free Trade Agreements (FTAs) has increased trade in them. The answer matters for trade policy, since the protection of at least some GIs has been a red line in EU FTA negotiations. The analysis is set in a standard gravity-model framework, using a pseudo-Poisson maximum likelihood (PPML) approach to account for the issue of zero-trade flows. We find that legal protection of GIs in FTAs does not significantly increase trade in them. Our main suggested policy implication is that the EU should focus on external promotion of its GIs rather than asking trading partners for stronger legal protection.

Suggested Citation

  • Huysmans, Martijn & Curzi, Daniele, 2020. "The impact of protecting EU Geographical Indications in trade agreements," 94th Annual Conference, April 15-17, 2020, K U Leuven, Belgium (Cancelled) 303703, Agricultural Economics Society - AES.
    • Handle: RePEc:ags:aesc20:303703
    DOI: 10.22004/ag.econ.303703
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    2. Resce, Giuliano & Vaquero-Piñeiro, Cristina, 2023. "Taste of home: Birth town bias in Geographical Indications," Economics & Statistics Discussion Papers esdp23089, University of Molise, Department of Economics.
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    5. Weiwen Qian & Yinguo Dong & Yuchen Liu, 2023. "The impact of mutual recognition of geographical indications on the quality upgrading of China’s agricultural exports," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-15, December.
    6. Martijn Huysmans & D. van Noord, 2021. "The market for lemons from Sorrento and Gouda from Holland. Do geographical indications certify origin and quality?: Do geographical indications certify origin and quality?," Working Papers 2108, Utrecht School of Economics.
    7. Xuejun Wang & Huiying Zhou & Dongmei Su, 2022. "Does the internationalisation of China's agri‐food standards affect export quality upgrading?—Evidence from firm‐product‐level data," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(4), pages 887-911, October.
    8. Marcello De Rosa & Margherita Masi & Ludovica Apostolico & Luca Bartoli & Martina Francescone, 2023. "Geographical Indications and Risks of Unsustainability Linked to “Disaffection Effects” in the Dairy Sector," Agriculture, MDPI, vol. 13(2), pages 1-12, January.
    9. Tobias Chilla & Benedikt Fink & Richard Balling & Simon Reitmeier & Karola Schober, 2020. "The EU Food Label ‘Protected Geographical Indication’: Economic Implications and Their Spatial Dimension," Sustainability, MDPI, vol. 12(14), pages 1-21, July.
    10. Carter, Colin A. & Steinbach, Sandro & Zhuang, Xiting, 2022. "Global Container Trade Disruptions and U.S. Agricultural Exports," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322364, Agricultural and Applied Economics Association.
    11. Emlinger, Charlotte & Latouche, Karine, 2023. "Protection of Geographical Indications in Trade Agreements: is it worth it?," 2023 Annual Meeting, July 23-25, Washington D.C. 335669, Agricultural and Applied Economics Association.
    12. David J. Kuenzel, 2023. "Geographical Protections and Trade: Product-level Evidence from EU Agreements," Wesleyan Economics Working Papers 2023-001, Wesleyan University, Department of Economics.
    13. Huysmans, Martijn, 2021. "On Feta and Fetta: Protecting EU Geographical Indications Down Under," 2021 Conference, August 17-31, 2021, Virtual 314978, International Association of Agricultural Economists.
    14. Carter, Colin A. & Steinbach, Sandro & Zhuang, Xiting, 2022. "Global Shipping Container Disruptions and U.S. Agricultural Exports," Working Papers 320397, International Agricultural Trade Research Consortium.
    15. Karola Schober & Richard Balling & Tobias Chilla & Hannah Lindermayer, 2023. "European Integration Processes in the EU GI System—A Long-Term Review of EU Regulation for GIs," Sustainability, MDPI, vol. 15(3), pages 1-24, February.
    16. De Filippis, Fabrizio & Giua, Mara & Salvatici, Luca & Vaquero-Piñeiro, Cristina, 2022. "The international trade impacts of Geographical Indications: Hype or hope?," Food Policy, Elsevier, vol. 112(C).

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