Geographical Indication Mutual Recognition Boosts Annual Growth of China-EU Agri-Food Trade

Summary

Since the China-EU Geographical Indications Agreement came into effect on 1 March 2021, bilateral agri-food trade has continued to grow. According to Zhai Qian, Director General of the Department of European Affairs at the Ministry of Commerce, speaking at the first China-EU Geographical Indications Products Cooperation (Chengdu) Conference, the volume of China-EU agri-food trade reached USD 30 billion in 2020, a year-on-year increase of 16.2%; and continued to grow by 11.1% from January to July 2021. The agreement was signed in September 2020, with the first batch of approximately 100 geographical indication products each receiving intellectual property protection, and the second batch of 175 each to be protected within four years.

Li Yan, Deputy Director of the Foreign Economic Cooperation Centre of the Ministry of Agriculture and Rural Affairs, noted that China exports fish, vegetables, edible oils and fats to the EU, and imports pork products, dairy products, wine, etc. from the EU. The two sides have strong agricultural complementarity and are important trading partners for each other. China is the EU's second largest export market for agricultural products and one of its five core markets for geographical indication products.

Since the agreement entered into force, China has stepped up efforts to combat infringement and counterfeiting of geographical indications, protecting the rights of consumers on both sides. Li Yan believes that mutual recognition of geographical indications will promote the upgrading of China's agricultural industry and rural revitalisation.

Commentary

The China-EU Geographical Indications Agreement strengthens brand protection for European agricultural products in the Chinese market, potentially creating a demonstration effect on Chinese consumers, raising awareness and demand for GI products. For New Zealand SME owners, this trend has two implications. First, opportunities: New Zealand already has a free trade agreement with China and possesses well-known GI products such as Zespri kiwifruit and Manuka honey.

The China-EU mutual recognition model could inspire New Zealand to pursue similar GI cooperation with China, seeking analogous protection mechanisms, thereby leveraging Chinese consumer trust in GIs to expand high-end agricultural exports. Additionally, European branding strategies in the Chinese market are worth emulating, particularly how origin stories and cultural marketing enhance premium pricing. Second, risks: European GI products (e.g., French wine, Italian cheese) are highly competitive in China and may squeeze New Zealand's market share for similar products.

SME owners need to strengthen differentiation, e.g., by highlighting unique New Zealand attributes like purity and sustainability, while avoiding direct price competition. At the same time, they must monitor changes in China's import inspection and quarantine standards to ensure compliance. In the long term, China-EU trade facilitation may lead to a more open Chinese agricultural market.

New Zealand firms could prepare early by partnering with Chinese distributors or e-commerce platforms and leveraging agreements such as RCEP to reduce tariff costs.

Keywords: China-EU Geographical Indications Agreement, agri-food trade, geographical indication mutual recognition, intellectual property protection, trade growth, European Union, China, pork products, dairy products, wine

Source: NetEase