This document discusses the need for geographical indication (GI) policy in Southeast European countries. It provides an overview of GI protection under international law and EU regulations. It examines issues around collective action and the development of GI products in Central and Eastern European countries. Case studies of paprika and salami from Hungary are presented to illustrate challenges in establishing GI protection, including product definitions, legal frameworks, and the role of institutions. The document emphasizes that traditions and cultural heritage provide potential for agro-food sectors if supported by the right market and policy approaches.

2. FAO Technical Seminar
Quality food products linked to
geographical origin
The need for GI policy inThe need for GI policy in
SouthSouth--eastern European countrieseastern European countries
Barna Kovács Ph.D.
3-4. December 2008.
Belgrade, Serbia

3. FAO Technical Seminar
Content of the Presentation
The History of Protection of GIs
The Definition of GIs
The EU oriented CEE
Final Remarks

4. 4FAO Technical Seminar
Geographical Indications inGeographical Indications in
International LawInternational Law
1. The Paris Convention for the Protection of Industrial
Property (1883)
173: AL, BIH, BG, CZ, EST, HU, LV, LT, MK, MD, CG, RO, PL
2. The Madrid Agreement on Indications of Source
(1891)
35: BG, CZ, HU, CG, PL, MD, SRB, SK
3. The Stresa Convention (1951)
4. The Lisbon Agreement on Appellations of Origin
(1958)
26: BG, CZ, GE, HU, CG, MD, RO, SRB, SK
5. The Olive Oil Agreement (1963)
40: HR, SRB, CG, EU
5. The EU – Australia Wine Agreement (1994)
6. Switzerland-EU, South Africa - EU agreements
7. The TRIPS Agreement (1994)

5. 5
The GI in TRIPThe GI in TRIPSS agreementagreement
According to the concept of Geographical Indication
defined in the TRIPS Agreement (Art. 22.1), GIs are
not necessarily:
• geographical names
• protected by any special means of legal protection (e.g. legal
provisions out of the usual laws on business practices,
trademarks, protection against misleading, unfair competition, or
even legal provisions implementing the minimum requirements of
the section on GIs of the TRIPS Agreement)
• recognized by any special institutional frame.
FAO Technical Seminar

6. 6
SINERSINER--GIGI TAXONOMY OF DIFFERENT TYPESTAXONOMY OF DIFFERENT TYPES
OF PRODUCTS LINKED TO THE TERRITORYOF PRODUCTS LINKED TO THE TERRITORY
FAO Technical Seminar
SINER-GI 7th Framework EU
Project: www.origin-food.org

7. 7
Geographical IndicationsGeographical Indications
• Generic Indications
• Appelation d’Origine
• Potection by Competition Law
• Individualized Geographical
Indications
FAO Technical Seminar

8. 8
Recognized Protection ofRecognized Protection of
Geographical Indications inGeographical Indications in
EC RegulationsEC Regulations
1. Spirits: No. 1576/1989
2. Agro-food products: No. 2081/1992
3. Wines: No. 1493/1999
4. Agro-food products: No. 1898/2006
FAO Technical Seminar

9. 9
The scope of protection in EUThe scope of protection in EU
1. To stop the direct and indirect general commercial use of the
geographical name.
2. To stop any misuse, imitation or evocation, even if the true
origin of the product is indicated; or if the protected name is
translated or accompanied by an expression such as “style”,
“type”, “method”, “as produced in”, “imitation” or similar;
3. To stop other false or misleading indication as to the origin,
nature or essential qualities of the product (on the inner or
outer packaging, advertising material or documents relating
to the product concerned, and the packing of the product in a
container liable to convey a false impression as to its origin);
4. To stop any other practice liable to misleading the consumer
as to the true origin of the product
FAO Technical Seminar

10. 10
The EU oriented CEE countriesThe EU oriented CEE countries
10+2 new member states in the moment of
accession:
- „Harmonized” EU legislation
- „Controversial” national legislation
- „International protection”
FAO Technical Seminar

11. 11
TheThe market economymarket economy orientedoriented
CEE countriesCEE countries
1. What was expected?
– The valorification of the good agro-food
potential
2. What was achieved?
– Fragile and totally open economy
3. What kind of failures?
– The role of individual
– The „institution” building
FAO Technical Seminar

12. 12
The foreign direct investments entered -contrary to
expectations- into industries
• with a safe home market (e.g. tobacco
industry),
• single product lines ( e.g. sugar
industry),
• standard technology ( e.g. starch
industry),
• mono- or oligopolistic position (e.g.
brewery industry).
FAO Technical Seminar

13. 13
The new member statesThe new member states
and the accessionand the accession
Expectations:
Stability of agricultural
policies
Stability of markets
Stability of incomes
The reality
2003 CAP reform / Single
Payment Scheme
Liquidity problems
Serious marketing difficulties
Continuous review of the CMOs
(‘silent reforms’)
Sugar
Wines
Fruits and vegetables
Cereals intervention
Partial or full decoupling of top-
ups in 2007
Health Check & budgetary
review
FAO Technical Seminar

14. 14
The context of accessionThe context of accession
General level:
• Quality, policies, agro-food markets, trends,
sectors.
• Theoretical approaches: supply chain, rural
development, environment, consumers/citizens
Specific level:
• Collective action and actors
• Theoretical approaches: impact of GIs on
special protection schemes
FAO Technical Seminar

15. 15
ParadigmsParadigms
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• Internationalization versus regionalization
– Regionally differentiated, local products
– Regional trademarks, certification marks, signs of
origin etc.
• Modernization versus rural development
– The „region” is not just a physical place
– The culinary knowledge and cultural code
• „Special quality” versus „quality”
– Consumer oriented quality dimensions versus
product, production, control oriented quality
dimensions

16. 16
Disagreement on consensusDisagreement on consensus
• How to measure performance?
• Is there a strong relationship between land
reform and agricultural performance?
• Are there economies of scale in agriculture that
put family farms at a disadvantage in comparison
to larger private farms? Are economies of scale
really the main determinant of farm size?
• Do family farms perform better than corporate
farms?
• How important are the institutions?
FAO Technical Seminar

17. 17
Approaches of interpretation andApproaches of interpretation and
protection of GIprotection of GI
Ruptures:
• Case Law (competition law) against Pre-
definition (appellation de origin)
• Nordic countries versus southern
countries (Anglo-Saxon versus Roman)
• Communism versus capitalism (the
property of everybody – the property of
nobody)
FAO Technical Seminar

18. 18
The need for a Public PolicyThe need for a Public Policy
1. The link between OLPs and the supply
chain.
2. The link between OLPs and rural
development.
3. The link between OLPs and consumers.
4. The link between OLPs and
environment.
FAO Technical Seminar

19. 19
Collective action in CEECollective action in CEE??
FAO Technical Seminar

20. 20
HungaricumHungaricum
Trade Mark Commercial
Mark
Quality
Certification
Mark
Origin
Certification
Mark
Quality and
origin
Certification
mark
Protected
Geographical
Indications
© Hungaricum
Pick-Szeged
Hungarian
Salami
Pick-Szeged
Hungarian
Salami
Pick-Szeged
Hungarian
Salami
Pick-Szeged
Hungarian
Salami
Pick-Szeged
Hungarian
Salami
Pick-Szeged
Hungarian
Salami
Szegedi
Fűszerpaprik
a Őrlemény
Szegedi
Fűszerpaprika
Őrlemény
Szegedi
Fűszerpaprika
Őrlemény
?? Szegedi
Fűszerpaprika
Őrlemény
Szegedi
Fűszerpaprika
Őrlemény
Szegedi
Fűszerpaprika
Őrlemény
FAO Technical Seminar

21. 21
EUEU CertifiedCertified AgroAgro--foodfood GIGI ProductsProducts
in thein the CEECEE
The Council Regulation covers 2 approaches:
1. Protected Designations of Origin (PDO):
originate in the geographical area,
a specific quality essentially or exclusively due to a particular
geographical environment,
production, processing and preparation in the defined geographical
area.
2. Protected Geographical Indications (PGI):
originate in that geographical area,
a specific quality, reputation or other characteristic must be
attributable to that geographical environment,
production and/or processing and/or preparation in the defined
geographical area.
FAO Technical Seminar

22. 22
EUEU CCertifiedertified AgroAgro--food Products infood Products in
the CEEthe CEE
The Council Regulations covers 2 more approaches
-beside the protected GIs- of the quality:
1. TRADITIONAL SPECIALITIES
GUARANTEED
Traditional specialty,
the special quality is not linked with geographical area.
2. ORGANIC FARMING
Organic production,
a specific quality linked with the production.
FAO Technical Seminar

23. 23
TheThe „„PaprikaPaprika”” casecase
• Free-liberalized market
• Product definition
• Collective action
• Institution building
• Controlling authority
• Controversial national legislations
• Controversial national statistics
FAO Technical Seminar

24. 24FAO Technical Seminar
Szegedi PaprikaSzegedi Paprika

25. 25
TheThe „„SalamiSalami”” casecase
• Monopolistic market
• Product definition
• Protection levels
• TM vs. GI
• PDO vs. PGI
• The Hungaricum
FAO Technical Seminar

26. 26
Some aspects of distortionsSome aspects of distortions
• „Property rights”
• Product definition
• Raw material – linked to origin
• Legal background
– Name use
– Fito-sanitary-veterinary
• Information flow
• Collective action
• Policy and Institution building
• Enforcement - control
FAO Technical Seminar

27. 27
Final remarksFinal remarks
• During the transition period for the market economy the
NMS were not able to „rediscover the possibilities” given
by GI product supply chains.
• The impact of enlargement on certain markets has not
been unambiguously positive.
• There are a few hundred thousands farmers in the new
member states living in a GI area without market access.
• There is a need for a longer term policy outlook in the EU
to give (less-favoured) farmers the certainty they need to
run their „businesses” competitively.
• Rural development must be involved in the establishment
of new institutions (rules-policies) on the market of GI
products.
• The governamental policy must provide an opportunity
for agricultur-, rural development-, market and consumer
policy harmonization regarding the recognized GIs.
FAO Technical Seminar

28. FAO Technical Seminar
…the development of the agro-food sector, the
enhancement of the small and medium-size
enterprises’ competitiveness is not necessarily
or exclusively conditioned by large-scale
industrial investments.
We would rather emphasize that traditions and
habits are part of cultural heritage, therefore
they change extremely slowly, allowing only
scarce possibility for innovation. However,
their potential is huge, which can be
explored, if an adequate market approach
accompanies them.