Protection of Geographical Indications in Trade Agreements: is it worth it?
Résumé
Geographical indications (GI) aim at promoting and protecting the names of agricultural products and foodstuffs according to their origin. The European GI system has been a contentious issue in European trade relationships for a long time, as shown by the different complaints submitted to the WTO dispute settlement body (by the US in 1999 and by Australia in 2003). The inclusion of GI in bilateral agreements has thus a non-negligible negotiation cost for the EU. The objective of this paper is to estimate the impact of the inclusion of GIs in bilateral agreements on French exports of foodstuffs. Results show that GIs foster exports of French agri-food firms. The recognition of GIs in trade agreements increases both the intensive and extensive margins of trade, as well as unit values for these products. This outcome is mainly driven by the PDO denomination, the oldest and most renowned geographical indication.
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