WTO dispute settlement panel formed for geographic indications case

Food & Drink Weekly, Oct 20, 2003

A disputes settlement panel has been formed at the World Trade Organization (WTO) to arbitrate over claims from the USA and Australia that European Union (EU) regulations on the protection of trademarks and geographical indications for foodstuffs break world trade rules. Washington alleges that the EU rules are illegal by not allowing the registration of non-EU geographical indications unless the designation was from a country that offered geographical indication protection equivalent to that in the European Union.

The United States and Australia complain that Brussels discriminates between EU members and other countries in the protection of geographical indications and fails to provide sufficient protection to preexisting trademarks that are similar or identical to a geographical indication. The United States in particular has hit out against provisions denying protection to geographical indications to countries that do not offer the same level of protection for such indications as that provided by the EU. The effect of this illegal "reciprocity" requirement, Washington adds, is that well-known U.S. geographical names such as Idaho Potatoes and Florida Oranges are denied protection in the EU. Australia says the EU regime breaks WTO rules banning discriminatory treatment of products, does not properly protect trademarks, and is too "complex and prescriptive".