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M.R. Subramani

CHENNAI, Oct. 7

THE US has opposed a European Union (EU) initiative in the World Trade Organisation (WTO) to protect products with unique geographical indications, including basmati rice and Darjeeling tea.

The EU had launched the initiative as a follow-up to the WTO Doha Ministerial Round last November. But in a position paper presented last week, the US has said the Doha mandate does not call for negotiations. The Doha round had only declared that "in order to facilitate the protection of GIs for wines, negotiations shall be undertaken in the TRIPS council concerning the establishment of a multilateral system of notification and registration of GIs for wines eligible for protection in those members participating in the system."

The US has taken refuge in the argument that any expansion of protection for geographical indicators (GIs) will only burden the developing world.

"Some WTO members are proposing to alter international standards on GIs for products other than wine or spirits. These proposals may impose significant new costs on WTO members, especially developing and least developed members, which will far outweigh any potential benefits," the US said in its paper presented to the WTO TRIPS (trade-related intellectual property rights) council.

The US Trade Representative, Mr Robert B. Zoellick, said: "We believe the current system works well and we share the concerns of many in the developing world that we don't need to burden everyone with a large and costly new framework, as some have suggested."

Joining the US in its stand are Guatemala, Argentina, Australia, Canada, Chile, the Dominican Republic, El Salvador, New Zealand, Paraguay, the Philippines and Taiwan.

In one of its two communications to the TRIPS Council, the EU proposed establishment of a multilateral register to guarantee the origin of these high-quality products, which would be in place by 2003. In the other proposal, it sought extension of protection to other products that deserve protection.

Currently, producers register their geographical indication in all countries where they market their products, which is a lengthy and costly process. This is the case even for European Union producers wishing to market their products outside the union.

It is this requirement that has helped companies such as RiceTec Inc of the US to get patent for basmati rice lines from the US Patent and Trademark Office (USPTO).

The EU also said it was open to future incorporation of other products, such as textiles.

The EU proposals were in line with the commitments it made during the Doha Ministerial Round in return for its demand that it be allowed to continue with domestic support measures for the agriculture sector. Even before the Doha round, the EU made it clear that it was ready to support any proposal by India.

The EU said its proposals were to protect many traditional, high-quality products that were specific to certain regions of the world. Indian saris, Turkish carpets, Jasmine rice (Thailand), Parmigiano Reggiano cheese (Italy), Jamon de Huelva (Spanish ham), art paper (China), and Limoges porcelain, besides Darjeeling tea and basmati rice were just a few examples of the products that could eventually benefit from enhanced protection. Geographical indications could also be used, in certain instances, for products that incorporated traditional knowledge such as Indian neem, the EU had said.

The EU proposals were supported by Pakistan, Sri Lanka, Mauritius, Nigeria, Kenya, Cuba, Thailand, Bulgaria, Romania, Switzerland, Slovakia, Slovenia and Moldova.

Countering the EU proposals specifically, the US said it would impose new obligations on all members, even those who prefer not to be involved in the system. "The members would be required to analyse and raise objections to hundreds of wine and spirits name within an 18-month period or be required to protect these terms," it said.

"The US and other WTO members strongly believe that before members advocate burdening developing and least-developed members with excessive new obligations, they should first strive to fully realise the existing protections available under global trade rules," the US said.

The US in its paper has proposed a "non-burdensome, low cost and effective system" for notification and protections of GIs that are recognised in the national system of individual WTO members. "Members will notify their respective registered or recognised GIs to the WTO, which would provide all other members with a complete compilation of GIs," the US said.

It also pointed out that GIs such as "Stilton" for cheese, "Parma" for ham and "Roquefort" for cheese had already received TRIPS protection as certification marks under the US law. "The owners of these GIs have successfully used this protection to prevent unauthorised uses of their GIs in the US," it added.

However, it is silent on the patent given for basmati and other Indian products such as neem and turmeric.

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