Protection of geographical indications and names

Recently, European winemakers faced growing competition pressures from the producers of the New World. Therefore, the issue of geographical indications and names, on which the marketing strategies of European companies are built, is submitted for negotiation between the EU and third countries.

The question of geographical indications is an important agreement on trade in wine, which was reached between the EU and Switzerland (under the Agreement on trade of agricultural products), the Balkan countries (under the Agreement on Association and Stabilization), Chile (under the Association Agreement) , Korea (under the Free Trade Agreement). Provisions on the protection of geographical indications and names are included in separate agreements on trade of wine, which the EU signed with the United States and Australia. The focus of these agreements is on the settlement of disputes which may appear with the use of geographical indications of one party of the agreements by winemakers other Contracting Party.

In the negotiations between the EU and Ukraine not only the use of such classic titles as "champagne" and "cognac", but "port, madeira, sherry" and "Cahors" are considered. There is also a conflict between the brands names of Ukrainian and European geographical indication (eg, TM Cotnari and the Romanian town Cotnari).

Accepting the significance of these names for the Ukrainian market of wine production, Ukraine can not agree with the introduction of automatic ban of the usage of these names in accordance with EU rules. Thus, during the negotiations with EU on a free trade, the Ukrainian negotiators should ensure that domestic producers will have similar rights to those provided in Article 6 of the Agreement on trade in wine between the EU and the USA.

According to this article, American manufacturers can continue to use separately defined in the Agreement European geographical names (including "Champagne") to designate the brand or wine, if only the manufacturers used a similar name before the Agreement was signed. In the context of Ukraine it can be "Kyiv factory of sparkling wines and sherry from Massandra.

However, the problem of protection of geographical indications and designations of Ukrainian wine production is only tip of the iceberg. After all, with Ukraine's accession to the WTO and the future creation of a free trade zone with the EU, the Ukrainian market of wine is becoming a part of the global wine market, where competition is increasingly stringent.