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EU’s Regulation of Geographical Indications and their Effects on Trade Flows

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  • Leufkens, Daniel

Abstract

Nowadays one of the big issues in international trade is the so-called Transatlantic Trade and Investment Partnership (TTIP), a bilateral trade agreement between the EU and USA. In these negotiations there are still many open questions, including dealing with the European protection of geographical indications (GIs). The objective of this paper is, therefore, to evaluate the impact of different GI products and protection levels in bilateral trade partnerships between the EU itself and third countries for the purpose of food policy recommendations in current negotiation processes. Based on panel data on agri-food trade of EU member countries with all trading partners for the period from 1996 to 2010, a gravity approach is used to estimate bilateral trade effects of GIs. The findings suggest that the protection of diverting products and levels for GIs have opposite effects on EUs trade partnerships. As results, considering EUs overall trade, GIs on wines and spirits only have a trade-creating effect if these are highly protected, while for other agricultural products only lower protection levels increase bilateral trade significantly.

Suggested Citation

  • Leufkens, Daniel, 2017. "EU’s Regulation of Geographical Indications and their Effects on Trade Flows," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 66(4), December.
    • Handle: RePEc:ags:gjagec:303549
    DOI: 10.22004/ag.econ.303549
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    Cited by:

    1. Chunyan Li & Jianmei Gao & Lanqing Ge & Weina Hu & Qi Ban, 2023. "Do Geographical Indication Products Promote the Growth of the Agricultural Economy? An Empirical Study Based on Meta-Analysis," Sustainability, MDPI, vol. 15(19), pages 1-21, October.
    2. Duan, Wenqi & Jiang, Mingming & Qi, Jianhong, 2024. "Agricultural certification, market access and rural economic growth: Evidence from poverty-stricken counties in China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 99-114.
    3. Lili Jantyik & Áron Török, 2020. "Estimating the Market Share and Price Premium of GI Foods—The Case of the Hungarian Food Discounters," Sustainability, MDPI, vol. 12(3), pages 1-15, February.
    4. Filippis, Fabrizio De & Giua, Mara & Salvatici, Luca & Vaquero-Pineiro, Cristina, 2021. "The International Competitiveness of Geographical Indications: Hype or Hope?," 2021 Conference, August 17-31, 2021, Virtual 315147, International Association of Agricultural Economists.
    5. Áron Török & Lili Jantyik & Zalán Márk Maró & Hazel V. J. Moir, 2020. "Understanding the Real-World Impact of Geographical Indications: A Critical Review of the Empirical Economic Literature," Sustainability, MDPI, vol. 12(22), pages 1-24, November.
    6. Áron Török & Ákos Szerletics & Lili Jantyik, 2020. "Factors Influencing Competitiveness in the Global Beer Trade," Sustainability, MDPI, vol. 12(15), pages 1-15, July.

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