Explanatory Memorandum to COM(2016)523 - Conclusion of an agreement with Iceland on the protection of geographical indications for agricultural products and foodstuffs

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1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

The EU and Iceland are signatories to the Agreement on the European Economic Area (EEA Agreement) which provides for the free movement of goods, with the exception of agricultural and fisheries products. Article 19 of the EEA Agreement contains provisions on trade in agricultural products. The 2007 EU-Iceland bilateral Agreement on trade preferences negotiated on the basis of Article 19 of the EEA Agreement includes among others a commitment by the Parties to promote trade in products with geographical indications (GIs).

The EU-Iceland GIs negotiations were conducted from 4 July 2012 to 17 September 2015. The negotiations were carried out in conjunction with the EU-Iceland negotiations on further liberalisation of trade in agricultural and processed agricultural products. Under the negotiated GIs Agreement, 1 150 EU foodstuff GIs will be protected in Iceland. Iceland has not yet registered any protected GI names. The Agreement provides, however, a mechanism for updating the GIs list and for including new GI names at a later stage through a Joint Committee process.

The GIs Agreement will enter into force on the first day of the month following the date on which the Parties have notified each other that their respective internal adoption procedures have been completed. If this date is before the date of the entry into force of the Agreement in the form of an exchange of letters between the EU and Iceland concerning additional trade preferences in agricultural products reached on the basis of Article 19 of the EEA Agreement, done at Brussels on … day of … in the year …., the GIs Agreement will only enter into force on the same date as the latter.


Consistency with existing policy provisions in the policy area

The EEA Agreement already provides for the mutual recognition and protection of geographical indications for wines, aromatised wine products and spirit drinks. Therefore the scope of this Agreement covers only agricultural products and foodstuffs other than wines, aromatised wine products and spirit drinks.


Consistency with other EU policies

The conclusion of the GIs Agreement with Iceland fits into the overall EU strategy of promoting the production and the consumption of EU products with GIs. Under this Agreement, 1 150 EU foodstuff GIs will obtain a high level of direct protection in Iceland. The GIs will be protected against:

• any direct or indirect commercial use;

• any misuse, imitation or evocation of the product;

• any other false or misleading indication as to the provenance, origin, nature or essential qualities of the product;

• any other practice liable to mislead the consumer as to the true origin of the product.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

In June 2007 the Council gave the Commission a mandate to launch negotiations with Iceland on the protection of products with geographical indications.

3. BUDGETARY IMPLICATIONS

The Agreement will have no direct impact on the EU budget.