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Friday August 27, 2021
Kaieteur News
...‘Demerara’: a primer on its history and significance in From page 5 Guyana have managed to protect certain GIs domestically. The slow pace of the development of other GIs within the context of the EPA has delayed the agreement to provide mutual protection for specific GIs under the EPA. Rather than wait, and with the advice and guidance of Bernard O’Connor, Guyana correctly decided to proceed with what is called a ‘Direct Application’ to the EU for protection of ‘Demerara Rum’. It should be noted that the EU usually gives direct applications
greater scrutiny than those to be protected under a negotiated trade agreement. Under the trade agreement, while the GIs are also published for opposition, there is usually a greater reliance on the home State to ensure that the GI meets the criteria for protection. In effect then, in the EU market, the direct grant has a greater assumption of validity. Guyana is to be congratulated on this successful conclusion of its work over the last few decades. The grant by the EU of GI protection for ‘Demerara
Rum’ now allows any local rum producer meeting the product specification located within the defined production area to use the term exclusively. The use of the term ‘Demerara Rum’ by rum producers outside of the defined area, or within the area but not meeting the product specifications is, therefore, now illegal under EU law. There are three factors that add value to products that consumers know by a term that is protected as a Geographical Indication, particularly in the EU market. First, the term tells the consumer that the product has a particular quality, characteristic or reputation that other similar products may not have. This simplifies the search requirement of the consumer ’s purchasing
decision. Second, the mark that is used to identify GIs acts as a quality indicator, assuring the consumer that the product will have that particular “quality, characteristic or reputation” that they expect. It also tells them that there is validity in the claim to its origin. An important aspect of this for producers is the need for them to have a code of practice and a control methodology in order to maintain the characteristic and the origin link underlying the GI. Related to the validity of origin is the third factor, viz; the ease with which protection of a GI can be enforced as opposed to trademark protection or protection under trade description legislation. It is the weakness of the latter that
allowed ‘Demerara Sugar’ initially to be considered as a generic term. Because of these factors, for most agricultural and food products, wines, and spirits, EU consumers have been found to be willing to pay a premium on the price of similar products not identified through a GI. On average, this premium ranges from 20 percent to 50 percent although, depending on the product, it can get as high as 140 percent. And it must be recognised that there are products for which a Geographical Indication adds little or no value. As many products known by terms that can be protected as GIs are produced in rural agricultural areas, this price premium being tied to those locations usually provides those producers with greater incomes. Incidentally, the geographical origin connection also allows for a spill-over effect of the premium into other products from the same location,
particularly where those products are also quality controlled. The result is that the production and promotion of Geographical Indication products can attract rural investment and have a significant and positive rural development effect. Guyana should continue to develop its capacity to understand and produce those products known for their unique, origin-linked characteristics by specific terms, and ensure that they protect the added value of using these Geographical Indications. ‘Demerara molasses’ should be next on the list, but other products like ‘Cassava Cassareep’, ‘Wiri Wiri Pepper’, ‘Hosororo Cocoa Sticks’ and many others for which Guyana is well known should also be addressed. Yours faithfully, Clement J. Rohee Former Minister of Foreign Trade and International Cooperation