EU, China Reach Landmark Trade Deal on High Quality Food Products – European CommissionCC0Business14:09 06.11.2019Get short URL1180Subscribe
MOSCOW (Sputnik) – The European Union and China have reached an agreement to increase protection of trade in high-end agri-food products by several large orders, the European Commission announced Wednesday.
Known as Geographic Indications (GI), the products within the agreement come under special protections from imitations and usurpation in order to preserve reputational links. Examples of European GI’s are wines, cheeses and whiskey whose place of origin makes up a significant portion of the value. Same for Chinese GI’s such as tea, ginger and spices.
According to a statement published Wednesday by the Council, the “landmark agreement” puts 100 products from either side under GI protection, a significant expansion from the 10 products signed into GI protection in 2012.
A joint statement by Commissioner Hogan and Chinese Minister of Commerce Zhong Shan hailed the accord as the most significant trade agreement between two sides, and a crucial step in preserving food heritage and contributing to rural economies amid an expanding Chinese middle class with an appetite for quality products.
The agreement comes on the back of a turbulent trade relationship which both sides have been experiencing with their largest international partner, the United States.
US President Donald Trump has been engaged in a trade war with China for over a year, hiking tariffs on goods in response to what he deemed unfair trading conditions. Trump also increased tariffs on EU goods (such as above mentioned wines, cheeses and whiskey) as part of a drawn-out dispute with the EU over the perceived unfair competition in aeroplane manufacturing.