Scotch whiskey, Champagne sparkling wine, Parmesan cheese, Dijon mustard—what do all of these have in common? They are not brand names but rather geographical indicators (GIs) of the origin of these foodstuffs. Europe has a long history of gastronomical delicacies that the European Union has been strong to protect for economic reasons. For example, not just any sparkling wine can be labeled “champagne” because only sparkling wine produced in the Champagne region of France can put that on the label. The British government is launching a registry of Scottish whiskey makers to protect its $4 billion industry from imitators who label their whiskey as Scotch. True Scotch must be aged in oak casks in Scotland for at least three years. Dijon mustard must be produced in Dijon, France, made with chardonnay wine from the Burgundy wine region. Parmesan cheese was developed more than 2,000 years ago in Parma, Italy, which also boasts of Parma ham (ProsciuttoScotch whiskey, Champagne sparkling wine, Parmesan cheese, Dijon mustard—what do all of these have in common? They are not brand names but rather geographical indicators (GIs) of the origin of these foodstuffs. Europe has a long history of gastronomical delicacies that the European Union has been strong to protect for economic reasons. For example, not just any sparkling wine can be labeled “champagne” because only sparkling wine produced in the Champagne region of France can put that on the label. The British government is launching a registry of Scottish whiskey makers to protect its $4 billion industry from imitators who label their whiskey as Scotch. True Scotch must be aged in oak casks in Scotland for at least three years. Dijon mustard must be produced in Dijon, France, made with chardonnay wine from the Burgundy wine region. Parmesan cheese was developed more than 2,000 years ago in Parma, Italy, which also boasts of Parma ham (Prosciutto di Parma). True Swiss cheeses, such as Emmental, Gruyere, and other varieties, are produced in Switzerland following strict rules to guarantee purity, and the authorities there identify counterfeits with DNA fingerprinting based on the 10,000 strains of milk bacteria that are used for authentic Swiss cheeses. All of these come with a higher price tag for consumers. For example, Portugal Algarve Salt or French Fleur de Sel sea salt cost about $80 per pound compared with 30¢ per pound for regular table salt. Are products with geographical indications actually superior to other similar ones not originating from that geographical region? Is it ethical for makers of these products to command higher prices when others can make or grow them just as well? Do geographical indications (GIs) offer benefits to consumers? Are there disadvantages for sellers? Explain.
Scotch whiskey, Champagne sparkling wine, Parmesan cheese, Dijon mustard—what do all of these have in common? They are not brand names but rather geographical indicators (GIs) of the origin of these foodstuffs. Europe has a long history of gastronomical delicacies that the European Union has been strong to protect for economic reasons. For example, not just any sparkling wine can be labeled “champagne” because only sparkling wine produced in the Champagne region of France can put that on the label. The British government is launching a registry of Scottish whiskey makers to protect its $4 billion industry from imitators who label their whiskey as Scotch. True Scotch must be aged in oak casks in Scotland for at least three years. Dijon mustard must be produced in Dijon, France, made with chardonnay wine from the Burgundy wine region. Parmesan cheese was developed more than 2,000 years ago in Parma, Italy, which also boasts of Parma ham (ProsciuttoScotch whiskey, Champagne sparkling wine, Parmesan
cheese, Dijon mustard—what do all of these have in common?
They are not brand names but rather geographical indicators
(GIs) of the origin of these foodstuffs. Europe has a long history
of gastronomical delicacies that the European Union has been
strong to protect for economic reasons. For example, not just
any sparkling wine can be labeled “champagne” because only
sparkling wine produced in the Champagne region of France
can put that on the label. The British government is launching a registry of Scottish whiskey makers to protect its $4 billion industry from imitators who label their whiskey as Scotch.
True Scotch must be aged in oak casks in Scotland for at least
three years. Dijon mustard must be produced in Dijon, France,
made with chardonnay wine from the Burgundy wine region.
Parmesan cheese was developed more than 2,000 years ago
in Parma, Italy, which also boasts of Parma ham (Prosciutto di Parma). True Swiss cheeses, such as Emmental, Gruyere,
and other varieties, are produced in Switzerland following
strict rules to guarantee purity, and the authorities there identify counterfeits with DNA fingerprinting based on the 10,000
strains of milk bacteria that are used for authentic Swiss cheeses. All of these come with a higher price tag for consumers. For
example, Portugal Algarve Salt or French Fleur de Sel sea salt
cost about $80 per pound compared with 30¢ per pound for
regular table salt.
Are products with geographical indications actually superior to other similar ones not originating from that geographical region? Is it ethical for makers of these products to command higher prices when others can make or grow them just as well?
Do geographical indications (GIs) offer benefits to consumers? Are there disadvantages for sellers? Explain.
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