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Geographical protections and trade: Product‐level evidence from EU agreements

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  • David J. Kuenzel

Abstract

Geographical protections (GPs) are enhanced trademarks based on the regional origins of products. Avid proponents such as the EU argue that foreign producers should not infringe on GPs, but current WTO rules are insufficiently clear to enforce national GPs across borders. While a contested issue in international policy circles, the trade impact of GPs is not fully understood. In this paper, I compile a unique product‐level data set from EU agreements with 31 countries that enforce EU GPs abroad and explore their effects on trade over the period 2005 to 2020. The analysis shows that the EU enjoys a significant boost in exports to its partner countries due to these arrangements, especially in products with higher numbers of negotiated cross‐border GPs and low initial EU market shares. Whereas EU GPs do not lower exports of competing third countries, they lead to significant price increases, both for EU and third‐country products. Indications géographiques et commerce : données probantes à l'échelle des produits tirées des accords commerciaux de l'UE.Une indication géographique (IG) est une forme de propriété intellectuelle, semblable à une marque de commerce, qui repose sur l'origine régionale d'un produit. De fervents partisans comme l'UE soutiennent que les producteurs étrangers ne devraient pas enfreindre l'IG, mais les règles actuelles de l'OMC ne sont pas suffisamment claires pour faire respecter les IG au‐delà des frontières. Bien qu'il s'agisse d'une question contestée dans les milieux politiques internationaux, l'incidence commerciale des IG n'est pas entièrement comprise. Dans le présent article, je compile un ensemble unique de données à l'échelle des produits provenant des accords commerciaux de l'UE, où 31 pays font respecter les IG de l'UE à l'étranger, et j'étudie les effets sur le commerce au cours de la période allant de 2005 à 2020. L'analyse montre que l'UE profite d'une augmentation notable des exportations vers ses pays partenaires en raison de ces accords, en particulier pour les produits pour lesquels le nombre d'IG transfrontalières négociées est élevé et les parts de marché initiales de l'UE sont faibles. Bien que les IG de l'UE ne diminuent pas les exportations de pays tiers concurrents, elles entraînent une hausse importante des prix, tant pour les produits de l'UE que des pays tiers.

Suggested Citation

  • David J. Kuenzel, 2025. "Geographical protections and trade: Product‐level evidence from EU agreements," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 58(4), pages 1583-1637, November.
  • Handle: RePEc:wly:canjec:v:58:y:2025:i:4:p:1583-1637
    DOI: 10.1111/caje.70029
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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