Geographical indications used as ingredients or components: a proposed reform in ‘sharp’ contrast with the Circular Economy (to say the least)

The European Union (EU) reform proposal about geographical indications (GIs) presents critical aspects, also from the perspective of the Circular Economy. In particular, the new norms on the use of GIs for ingredients in case of agri-food processed products, as well as for parts or components in craft/industrial manufactured products, impact directly on connected economic activities. This is done in two ways: in case of product name, by subjecting the legitimate use of GIs to the authorization of the relevant producer group; in case of product description, by reserving the legitimate use of GIs only to entitled operators, without any further clarification. From both the perspective of the intentional policy choice and the unhappy legislative wording, this normative restraint raises serious doubts. More precisely, it implies an inconsistent and disproportional limitation to ‘elaborated’ secondary markets, especially by introducing a discretional management of GIs on a mere voluntarily basis. Without questioning the firm condemnation of any unfair usurpation of geographical reputation, this shift seems undesirable since it brings the GI regime away from its fundamental principle of objective non-discriminatory access, which is not only complementary to its functional rationale, combining territorial protection and quality guarantee, but also perfectly in line with the goals of the Circular Economy. This article ultimately advocates a correction at the legislative — or at least interpretative — level so that the EU system can level off this ‘sharp’ contrast, reconciling with the current sound balancing where the legitimate use of GIs in case of ingredients/components is subject just to objective qualitative justification and fair commercial presentation.