The Power of Geographical Indications: Considerations for Africa

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1 The Power of Geographical Indications: Considerations for Africa Cerkia Bramley Institute for Food, Nutrition and Wellbeing University of Pretoria

2 What are Geographical Indications? (GIs) Indications which identify a good: Qualities Reputation Other characteristics Specific geographical origin

3 Examples of GIs Food products Basmati rice,champagne, Roquefort cheese, Parma ham, Cafe de Columbia, Tequila, etc. Rooibos tea, Karoo Lamb, Gari Missé,Moshuwe Pineapples, Argan oil Other traditional products Could include handicrafts, textiles, etc.

4 International legal obligation to protect GIs 1994: TRIPS requires that all WTO Member countries provide the legal means to protect GIs within their territories. Effectively internationalised the GI concept. Beyond international legal obligation to do, strong reasons exist for African countries to consider GIs at national level. UNIVERSALITY OF THE GI CONCEPT

5 GIs as a business tool Consumers increasingly placing value on products they can associate with place and/or special means of production: Distinctive sign which signals a product-originquality nexus. Form of branding Communicate and differentiate Opportunity to move away from commodity markets into more lucrative niche markets.

6 GIs as a business tool Builds a collective reputation - collective process of value creation. VALUABLE MARKETING TOOL -Improved market access -Potential price premiums

7 Concern over Misappropriation Misappropriation and usurpation of origin based names increased significantly in recent years. Internationally trade mark registrations by entities with no link to the region Honeybush in Japan Rooibos in France Take unfair advantage of and threaten collective reputation of the GI.

8 Need for Official recognition and Protection Historically, many examples of origin based products sustained without official recognition and protection. Many regional products survived for long period through undocumented practices of producers, merchants and consumers.

9 Need for Official recognition and Protection But, marketing potential and income effect of GIs together with increased presence of origin based products in different markets (taking the local global) = NEED FOR OFFICIAL RECOGNITION AND PROTECTION

10 Changing positions of GIs in the Developing world Defensive role of GIs (name reservation) important motivator for countries such as India, Columbia and Thailand: stronger positions on GI protection internationally implement domestic legal measures for GI protection that exceeds their obligations under TRIPS.

11 GIs as a Policy Tool Promoting sustainable rural development Market access and raising incomes Broader rural development impacts agro-tourism, job creation etc. Preservation of Traditional knowledge Do not protect per se But places in public domain Environmental impacts biodiversity preservation

12 Considerations for GIs in Africa However- legal protection only first step to unlock the value of a GI

13 1. Marketing and Market Development GIs do not lead to automatic value creation Piling up of laws should not be confused with accumulation of reputational capital. As for any other brands, unlocking marketing value in GI requires significant investment to build, promote, maintain a GI.

14 1. Marketing and Market Development Lack of market knowledge and financial resources significant constraints: Will need to provide support to resource poor communities. Product positioning - Local versus international markets? Does the product enjoy existing reputation on this market?

15 2. NEED FOR CONTROLS Long term value of GIs will depend on trust of consumer in the product: Requires effective quality controls Weak institutional framework? Lack of certification bodies? Beyond credibility on local markets - access to EU market?- does not prescribe controls in 3 rd country markets to qualify for EU registration, however, when want to place the product on EU market must qualify with EU Official Controls.

16 3. MONITORING AND ENFORCEMENT Once protected, will need to monitor and enforce the IP rights. Whose responsibility? GI Right holder - private process? poor rural producers? dependant on financial means? Role of State? Capacity? Implementation?

17 GI success factors Guideline for choosing GI products Product specificity How unique is the product? - Basis for differentiation The stronger the origin/product nexus, more robust is competitive advantage Drafting product specification. Reputation: Does product have existing reputation? On which markets? (local, national, international) Influences cost of establishing product on market

18 GI success factors Guideline for choosing GI products Collective action and coordination In defining the GI (borders and code of practices) How to ensure that benefit is fairly distributed? Participation in control of the GI Need for representative industry organisation Rooibos versus Honeybush experience

19 GI success factors Guideline for choosing GI products Institutional support role of the public sector Defined as private right - State intervention justified by public policy objectives Defining the GI product exclusionary dynamics Importance of substantial examination (state oversight in defining the GI) Dangers of top down approach to defining a GI Case of India

20 GI success factors Guideline for choosing GI products The collective nature and public dimensions of GIs should form a key consideration in the design of an institutional framework.

21 Conclusion Significant potential benefits associated with GIs: Business tool Public policy instrument But complex process and developing country GIs face particular challenges that arise from their environment.

22 Conclusion Case of Tequila in Mexico: GIs are legally defined in an almost identical manner under Mexican law as it is in France. However despite this, and although sales volumes have increased significantly, the introduction of the Tequila GI has largely failed to benefit the local community and environment. Also observed in India for majority of GI registrations.

23 Conclusion Legal protection is an essential first step but stricter laws alone do not give rise to the GI benefits. Countries committing scare resources to GI strategies need to consider additional factors beyond legal protection to ensure benefits.