WRITTEN QUESTION E-0120/00

by Ioannis Souladakis (PSE) to the Council

(31 January 2000)

Subject: Breach of the EU-South African Trade Agreement

South Africa's insistence on using the protected designations ouzo and grappa on its spirits products, although they belong to the protected drinks of Greece and Italy respectively, casts doubt on the free trade agreement recently signed between the EU and South Africa. South Africa's conduct in this respect is causing problems in attempts at rapprochement between the two sides, especially following the abolition of apartheid and the end of the country's decades-long international isolation.

It is advisable to avoid the infringement of EU agreements with third countries at the expense of the specific interests of producer groups in Member States before the relevant agreements are concluded. Since there are many similar agreements with third countries, the responsible EU bodies should in each case take the preventive measures necessary to avoid the risk of large numbers of protected products being counterfeited.

Does the Council take the safeguarding of protected designations for EU products into account during the conclusion of free trade agreements and what measures is it taking in this particular case to protect ouzo and grappa producers from the counterfeiting of these designations in South Africa?

Reply

(13 April 2000)

The Council of the European Union is fully aware of the need to protect the interests of EU producers of traditional products when negotiating international agreements and, for wines and spirits, strives to ensure that traditional EU names are protected.

1. It should be pointed out that the Agreement on Trade, Development and Cooperation concluded between South Africa and the EU in October 1999 provides for the protection of intellectual property, including geographical indications, in particular designations of origin, trademarks and service marks, thus preventing the marketing within the European Union of any product called ouzo or grappa unless it has been produced in the EU.

2. The General Affairs Council of 14 February 2000 examined this matter carefully and reached a position with a view to clarifying the scope of the protection afforded to certain alcoholic beverages. In an exchange of notes between the President of the European Commission and the President of the Council of the European Union for the one part and the President of South Africa for the other, dated 15 and 16 February 2000 respectively, it was agreed that, with regard to wines and spirits, and in order to protect names or specific expressions, the terms Grappa, Ouzo, Korn, Kornbrand, Jagertee and Pacharan would, after a transitional period of five years, cease to be used for any spirit produced in South Africa and that the only products authorised for sale under these names on the South African market would be those originating in the European Union.

3. The Council and the Commission pointed out that the use of the traditional names Grappa and Ouzo already enjoyed full protection under Community law. Any use of these names is reserved exclusively for products originating in Italy and Greece respectively. The Community customs authorities may accordingly prohibit the entry on the EU market of any product from a third country that is offered for sale under these names or labelled as such.

4. The Council would also point out to the Honourable Member that the Parties agreed in the aforementioned exchange of notes to resume the official negotiations on the Wines and Spirits Agreement in March 2000 with a view to concluding them before 1 June 2000 and enabling the said Agreement to enter into force on 1 September 2000.