Changes from report parliamentary committee draft to plenary report

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

Changedon the proposal for a regulation of the European Parliament and of the Council on European Union geographical indications for wine, spirit drinks and agricultural products, and quality schemes for agricultural products, amending Regulations (EU) No 1308/2013, (EU) 2017/1001 and (EU) 2019/787 and repealing Regulation (EU) No 1151/2012

▸4 unchanged paragraphs

(COM(2022)0134 – C90130/2022 – 2022/0089(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2022)0134),

Changed– having regard to Article 294(2) and ArticleArticles 43(2) and Article 118, first paragraph,118(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90130/2022),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the opinion of the European Economic and Social Committee of 13 July 2022,

Changed– having regard to theRule report59 of the Committee on Agriculture andits RuralRules Developmentof (A90000/2022),Procedure,

Added– having regard to the opinions of the Committee on Legal Affairs and the Committee on International Trade,

Added– having regard to the report of the Committee on Agriculture and Rural Development (A9-0173/2023),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Change 1

RemovedArticle 2 – paragraph 1 – point a: (a) ‘producer group’ means any association, irrespective of its legal form, composed of producers of raw material, processors or operators involved in the production of the same product;

AddedRecital 1: (1) The European Green Deal22 included the design of a fair, sustainable, healthier and more environmentally-friendly food system accessible to all ('farm to fork') among the policies to transform the Union's economy for a sustainable future.

RemovedArticle 2 – paragraph 1 – point g: (g) ‘generic term’ means the name of products which, although relating to the place, region or country where a product was originally produced or marketed, have become the common name of a product in the Union; / (deleted) / (deleted)

AddedRecital 1 a (new): (1a) Geographical indications can play an important role in terms of sustainability, including in the circular economy, which could enhance their heritage value and thus strengthen their weight within the framework of national and regional policies with a view to meeting the objectives of the European Green Deal.

RemovedArticle 2 – paragraph 1 – point i a (new): (ia) 'sustainability undertaking' means an undertaking promoting sustainable production in its three dimensions, by contributing to one or more social, environmental and economic objectives.

AddedRecital 2: (2) Commission Communication of 20 May 2020 on 'A Farm to Fork Strategy - for a fair, healthy and environmentally-friendly food system' which called for a transition to sustainable food systems, also calls to strengthen the legislative framework on geographical indications and include specific sustainability criteria. In the Communication, the Commission committed to strengthen, among other players, the position of producers of products with geographical indications, their cooperatives and producer organisations in the food supply chain. Focus should be placed on small-scale producers, particularly those who best preserve traditional skills and know-how.

RemovedArticle 4 – paragraph 1 – point -a (new): (-a) a fair return for producers for the qualities of their products;

AddedRecital 4: (4) The quality, accessibility and diversity of the Union’s wine, spirit drinks and agricultural production is one of its important strengths, giving a competitive advantage to the Union’s producers and making a major contribution to its living cultural and gastronomic heritage. This is due to the skills and determination of Union producers who have kept traditions and cultural identity alive while taking into account the developments of new production methods and material, which have made traditional Union products a symbol of quality.

RemovedArticle 4 – paragraph 1 – point -a a (new): (-aa) support to agricultural and processing activities and the farming systems associated with high-quality products, thereby contributing to the achievement of rural development policy objectives;

AddedRecital 5: (5) Citizens and consumers in the Union increasingly demand quality, traditional and accessible products, which have specific qualities attributable both to their origin and to their manner of production. They are also concerned to maintain the diversity and security of supply of agricultural production in the Union. This generates a demand for wine, spirit drinks and agricultural products with identifiable specific characteristics, in particular those linked to their geographical origin as well as ensuring the production conditions that have shaped the reputation and identity of such products.

RemovedArticle 4 – paragraph 1 – point a: (a) that producers acting collectively have the necessary powers and responsibilities to manage their geographical indication, including to create value and to respond to societal demands for products resulting from sustainable production in its three dimensions of economic, environmental and social value, and to operate in the market;

AddedRecital 5 a (new): (5a) High-quality products represent one of the biggest assets the Union has, both for our economy and cultural identity. Those products are the strongest representation of the “made in the EU” brand, recognisable throughout the whole world, which generate growth and preserve our heritage. Wines, spirit drinks and agricultural products are European assets that need to be further strengthened and protected.

RemovedArticle 4 – paragraph 1 – point b a (new): (ba) that the added value associated with geographical indications is fairly shared across the supply chain;

AddedRecital 5 b (new): (5b) Citizens and consumers are entitled to expect that any geographical indication and quality scheme is backed up by a robust verification and control system, regardless of whether the product originates from the Union or a third country.

RemovedArticle 4 – paragraph 1 – point c: (c) that consumers receive reliable information and a guarantee of authenticity of such products and can readily identify them in the marketplace including in the domain name system and in electronic commerce;

AddedRecital 9: (9) Ensuring uniform recognition and protection throughout the Union for the intellectual property rights related to names protected in the Union is a priority that can be effectively achieved only at Union level. Geographical indications protecting the names of wines, spirit drinks and agricultural products having characteristics, attributes or reputation linked to their place of production are an exclusive Union’s competence. A consistent and exclusive system of geographical indications therefore needs to be provided. Geographical indications are a collective right held by all eligible producers in a designated area willing to adhere to a product specification. Producers acting collectively have more powers than individual producers and take collective responsibilities to manage their geographical indications, including responding to societal demands for products resulting from sustainable production. Similarly, the collective organisation of the producers of a geographical indication can better ensure a fair distribution of the value added amongst the actors in the supply chain, to provide a fair income to producers, which covers their costs and allows them to invest further in the quality and sustainability of their products. Operating geographical indications reward producers fairly for their efforts to produce a diverse range of quality products. At the same time, this can benefit the rural economy, which is particularly the case in areas with natural or other specific …

RemovedArticle 4 – paragraph 1 – point d: (d) efficient registration of geographical indications taking into account the uniform, appropriate and effective protection of intellectual property rights in the internal market including the Union digital market; and

AddedRecital 9 a (new): (9a) A unitary and exclusive system of geographical indications should contribute significantly to increased awareness, recognition and consumer understanding, both in the Union and in third countries, of the symbols, indications and abbreviations demonstrating participation in the European quality schemes and their added value, complementing Regulation (EU) No 1144/2014 of the European Parliament and of the Council1a. / 1a Regulation (EU) No 1144/2014 of the European Parliament and of the Council of 22 October 2014 on information provision and promotion measures concerning agricultural products implemented in the internal market and in third countries and repealing Council Regulation (EC) No 3/2008 (OJ L 317, 4.11.2014, p. 56).

RemovedArticle 4 – paragraph 1 – point e: (e) effective enforcement and marketing throughout the Union and in the domain name system and in electronic commerce ensuring the integrity of the internal market.

AddedRecital 11: (11) The Union has for some time been aiming at simplifying the regulatory framework of the Common Agricultural Policy. The procedures for amending product specifications for products designated by a geographical indication have already been simplified and made more efficient for wine and agri-food products as part of the review of the Common Agricultural Policy. In order to further simplify the lengthy registration and amendment procedures, harmonised procedural rules for geographical indications for spirit drinks and agricultural products should be laid down in a single legal instrument, while maintaining product specific provisions for spirit drinks in Regulation (EU) 2019/787 and for agricultural products in this Regulation. This Regulation should be accompanied by a number of tools for providing small producers and small producer groups with appropriate support, such as tailor-made training courses about the changes being introduced, which should be organised by the national authorities and the Commission.The procedures for the registration, amendments to the product specification and cancellation of the registration in respect of geographical indications originating in the Union, including opposition procedures, should be carried out by the Member States and the Commission. The Member States and the Commission should be responsible for distinct stages of each procedure. Member States should be responsible for the first stage of the procedure, which consists of receiving…

RemovedArticle 6 – paragraph 1: 1. Products designated by geographical indications shall be classified according to the combined nomenclature at two, four, six or eight digit level. Additional codes established pursuant to Articles 3 and 5 of Regulation (EEC) No 2658/1987 may be added to the combined nomenclature by the Commission, upon the request of a Member State. Where a geographical indication covers products of more than one category, each subheading shall be specified. Product classification shall only be used for registration, statistical and record keeping purposes. The said classification shall not be used to determine comparable products for the purposes of protection against direct and indirect commercial use referred to in Article 27(1), point (a).

AddedRecital 11 a (new): (11a) The Union's quality policy is a public policy associated with the production of public goods that should contribute to enabling the transition to a just and fair sustainable food system. Geographical indications are tools capable of contributing to: sustainable rural development; the diversification of the rural economy; the prevention of offshoring and depopulation by creating and preserving jobs in European rural areas and sustaining small scale, local and traditional producers; preserving cultural and socio-economic diversity; protecting the rural landscape; the sustainable management and reproduction of natural resources; biodiversity conservation; animal welfare; and food safety and security as well as traceability.

RemovedArticle 7 – paragraph 1 – point f: (f) ‘recognised producer group’ means a formal association recognised by the competent national authorities as the sole group to act on behalf of all producers;

AddedRecital 12: (12) To contribute to the transition to a sustainable food system and respond to societal demands for sustainable, environmentally and climate friendly, animal welfare ensuring, resource efficient, socially and ethically responsible production methods, producers of geographical indications should be encouraged to adhere to sustainability standards that are more stringent than the mandatory ones, encompassing environmental, social and economic objectives. Such specific requirements should be set out in the product specification or in a separate initiative. To enable the uptake of sustainability undertakings, producers should receive financial support by means of pre-established, specific and easily accessible funding and should be properly informed about the opportunities arising from the uptake of sustainability undertakings, including via information sessions and advisory systems on ways for producers to easily acquire the requisite knowledge of the properties of their own products which bring added value and which will then be passed on to consumers. The sustainability undertakings included in the product specification should relate to the three main types of sustainability: economic, social and environmental.

RemovedArticle 7 – paragraph 1 – point g a (new): (ga) 'association of producer groups' means an organisation that promotes the interests of producers of products designated by different geographical indications.

AddedRecital 12 a (new): (12a) Sustainability undertakings should contribute to one or more environmental, social or economic objectives. Such environmental objectives should include climate change mitigation, the conservation and sustainable use of soils, landscapes and natural resources, the preservation of biodiversity and the conservation of rare seeds, local breeds and plant varieties, the promotion of short supply chains or the management and promotion of animal health and welfare. The social objectives, they should include the improvement of working and employment condition, as well as collective bargaining, social protection and safety standards, attracting and supporting both young and new producers of products designated by a geographical indication to ease generational renewal and facilitating the solidarity and transmission of knowledge across generations or promoting healthier diets. The economic objectives should include, securing a stable and fair income and a strong position across the value chain for producers of products designated by a geographical indication, improving the economic value of products designated by a geographical indication and the redistribution of added value along the value chain, contributing to the diversification of the rural economy, or preserving rural areas and local development, including agricultural employment.

RemovedArticle 8 – paragraph 1: 1. Applications for the registration of geographical indications may only be submitted by a producer group of a product ('applicant producer group'), the name of which is proposed for registration. Other interested parties, including regional or local public bodies, may help in the preparation of the application and in the related procedure.

AddedRecital 12 b (new): (12b) Public procurement criteria should incorporate geographical indications and other quality schemes provided that they contribute to sustainable food production.

AddedRecital 13: (13) To ensure coherent and efficient decision-making as regards applications for protection and judicial challenges against them, submitted in the national procedure, the Commission should be informed in an immediate and regular manner when procedures are launched before national courts or other competent bodies concerning an application for registration forwarded by the Member State to the Commission, and of their final results. For the same reason, where a Member State has reason to believe that a national decision on which the application for protection is based is likely to be invalidated as a result of national judicial proceedings, it should inform the Commission of that assessment, duly justifying this. If the Member State requests the suspension of the scrutiny of an application at Union level, the Commission should be exempted from the obligation to meet the deadline for scrutiny established therein. In order to protect the applicant from vexatious legal actions and to preserve the applicant’s right to secure the protection of a name within a reasonable time, the exemption should be limited to cases in which the application for registration has been invalidated at national level by an immediately applicable but not necessarily final judicial decision or in which the Member State has reason to believe that the action to challenge the validity of the application is based on valid grounds.

AddedRecital 14 a (new): (14a) With regard to the process of amendment of a product specification, a temporary amendment should be considered as a standard amendment when it concerns a temporary change in the product specification resulting from the imposition of obligatory sanitary and phytosanitary measures by the public authorities or a temporary amendment necessary because of a natural disaster or adverse weather conditions recognised by the competent authorities, or a man-made disaster, such as war.

AddedRecital 15: (15) To ensure transparency and uniformity across Member States, it is necessary to establish and maintain a single electronic Union register of geographical indications, registered as protected designations of origin or protected geographical indications. The periodically updated register should provide information to consumers and to those involved in trade, in compliance with the Union rules in force on the protection of know-how and trade secrets, on all types of geographical indications entered into the register pursuant to their registration in the Member State, by third country application, as a result of a concluded international trade agreement or upon international registration derived from the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications. The register should be an electronic database stored within an information system, and should be accessible to the public. That register should enable easy access to the product specifications behind each geographical indication and quality schemes, regardless of whether they are from the Union or from third countries, including those recognised via trade agreements or via the mechanism provided for in the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications.

AddedRecital 15: (15) To ensure transparency and uniformity across Member States, it is necessary to establish and maintain an electronic Union register of geographical indications, registered as protected designations of origin or protected geographical indications. The register should provide information to consumers and to those involved in trade. The register should be an electronic database stored within a secure information system, and should be accessible to the public. It should be kept up-to date and maintained by the European Union Intellectual Property Office (EUIPO). That register should enable easy access to the product specifications behind each geographical indication and quality schemes, regardless of whether they are from the Union or from third countries, including those recognised via trade agreements or via the mechanism provided for in the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications.

AddedRecital 16: (16) Given their recognised role in creating economic value and jobs, maintaining local traditions and knowledge and protecting natural resources, all Union geographical indications should be protected under bilateral and multilateral trade agreements and other international agreements through the recognition of the Union system as such. In that regard, the Union should devote significant commercial and diplomatic efforts to ensure the protection of traditional practices which bring together historical, cultural and gastronomic heritage while ensuring sustainable production. Furthermore, international trade agreements with particular provisions on the protection of designations of origin and geographical indications are of particular importance, as they provide market access and opportunities for economic growth and jobs for both the Union and third countries right-holders, while protecting against unfair practices and safeguarding consumer safety and health. In order to facilitate the provision to the public of information about the names protected by the international agreements, and in particular to ensure protection and control of the use to which those names are put, those names should be entered in the Union register of geographical indications. Unless specifically identified as designations of origin in such international agreements, the names should be entered in the register as protected geographical indications.

AddedRecital 16 b (new): (16b) In order to unlock the full potential of designations of origin and geographical indications in international trade, this Regulation should be complemented with further cooperation and engagement with third countries through trade policy with a view to enhancing legislative frameworks for the protection and enforcement of designations of origin and geographical indications in third country markets, taking due consideration of the level of development of third countries.

AddedRecital 17: (17) For the optimal functioning of the internal market, it is important that producers and other operators concerned, authorities and consumers may quickly and easily have access to the relevant information concerning a registered protected designation of origin or protected geographical indication in all the official Union languages. This information should include, where applicable, the information on the identity of the producer group recognised at national level.

AddedRecital 17 a (new): (17a) While negotiating trade agreements, or specific bilateral agreements on geographical indications, the parties should always bear in mind their specificities and the complex tissue of producers entering into the scope of the protected products; in that regard, special attention should be given to micro, small and medium-sized producers avoiding disproportionate burdens and additional costs since they are key actors and preservers of the system. In order to ensure fair competition and promote international trade, this Regulation should not, therefore, create discrimination nor should it constitute a barrier for potential applicants, particularly producers in the Union and third countries qualifying as micro, small or medium-sized enterprises.

AddedRecital 23: (23) Producer groups, including those defined by Member States’ national law, play an essential role in the management of their geographical indications, including the application process for the registration, as well as in the amendment of specifications and cancellation requests. They should be equipped with the means to better identify and market the specific characteristics of their products as well as adequate resources to exercise their powers and responsibilities. The role of the producer group should hence be clarified. Member States should be able to provide that the contribution to costs associated with the exercise of powers and responsibilities by the recognised producer group is compulsory for all producers of products designated by that geographical indication. Other interested parties, including specialist organisations, non-governmental organisations such as consumer groups, or public bodies could provide technical advice and help in the preparation of the application and the related procedure.

AddedRecital 25 a (new): (25a) The recognition and protection of established rights in the domain names industry at international level is essential to prevent the usurpation of the reputation of geographical indications due to the strong development of commerce on the internet. The Union's trade agreements with third countries currently constitute the most appropriate framework for reinforcing protection at the international level. The Commission should pay special attention to the need to include the protection of geographical indications rights at domain names level in bilateral trade agreements and other international trade negotiations, and strengthen its mediation work with the bodies in charge of assigning domain names, and very particularly with Internet Corporation for Assigned Names and Numbers (ICANN), with the objective to include the GIs’ existing rights in the Uniform Domain Name Dispute Resolution Policy (UDRP).

AddedRecital 26: (26) The relationship between trademarks and geographical indications should be clarified and made more transparent in relation to criteria for the rejection of trademark applications, the invalidation of trademarks and the coexistence between trademarks and geographical indications.

AddedRecital 27: (27) In order to avoid creating unfair conditions of competition, any producer, including a third-country producer, should be able to use a registered geographical indication, provided that the product concerned complies with the requirements of the relevant product specification or single document or an equivalent to the latter, i.e. a complete summary of the product specification. The system set up by the Member States should also guarantee that producers complying with the rules are entitled to be covered by the verification of compliance of the product specification. Third country producers should be subject to Union-comparable verification procedures set up by their respective oversight authorities.

AddedRecital 29: (29) The labelling of spirit drinks and agricultural products should be subject to the general rules laid down in Regulation (EU) No 1169/2011 of the European Parliament and of the Council29, and in particular the provisions aimed at preventing labelling that may confuse or mislead consumers.

AddedIn line with the idea to maintain wine IG provisions in the Regulation (EU) 1308/2013.

AddedRecital 30: (30) The use of Union symbols or indications on the packaging of, and on the presentation pages of retail websites for, products designated by a geographical indication should be made obligatory in order to make this category of products, and the guarantees attached to them, better known to consumers and to permit easier identification of these products on the market, thereby facilitating checks. However, in view of the specific nature of products covered by this Regulation, special provisions concerning labelling should be maintained for spirit drinks. The use of such symbols or indications should remain voluntary for third country geographical indications and designations of origin.

AddedRecital 31: (31) The added value of the geographical indications is based on consumer trust. The system of geographical indications significantly relies on self-control, due diligence and individual responsibility of producers, while it is the role of the competent authorities of the Member States to take the necessary steps to prevent or stop the use of names of products, which are in breach of the rules governing geographical indications. The role of the Commission is to intervene in case of a systemic failure to apply Union law. Geographical indications should be subject to the system of official controls, in line with the principles set out in Regulation (EU) 2017/625 of the European Parliament and of the Council30 , which should include a system of controls at all stages of production, processing and distribution. Each operator should be subject to a control system that verifies compliance with the product specification.

AddedIn line with the idea to maintain wine IG provisions in the Regulation (EU) 1308/2013.