The Crisis in the International Trading System
Chapter 10: Enjoying a Good Port with a Clear Conscience: Geographic Indicators, Rent Seeking and Development
Using Cabernet Sauvignon grapes grown in the soils of Napa Valley vineyards, Winemaker Ed Shragia has created a vintage port of exceptional depth and concentration. Wood aging in oak barrels for eighteen months gives the wine a smooth, velvety texture. Label on 1999 Napa Valley Port, of Cabernet Sauvignon by Berringer Vineyards, St Helens, California GIs provide added value to our producers. French GI cheeses are sold at a premium of 2 euro. Italian ‘Toscano’ oil is sold at a premium of 20% since it has been registered as a GI in 1998. Many of these products whose names are protected, are exported. 85% of French wine exports use GIs. 80% of EU exported spirits use GIs. GIs are the lifeline for 138000 farms in France and 300000 Italian employees. Trade Issues, EU Commission, 30 July 2003 In the pre-Uruguay Round General Agreement on Tariffs and Trade (GATT 1947) the provisions on marks of origin constituted a relatively benign and rather innocuous aspect of trade law.1 The provisions were considered largely a convenient anachronism that provided some protection against the most egregious forms of misrepresentation. These provisions, like antidumping measures, represented one of the few areas where the GATT 1947, which was primarily designed to deal with the activities of governments, ventured into the regulation of the activities of private firms. After all, it is private firms that misrepresent the place of origin of their goods, not governments. While the impetus for putting a clause on marks of origin in...
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