New trade agreement recognizes Brazilian products as geographical indications before the European Union
On June 28, 2019, a new free trade agreement was announced between Mercosur and the European Union. Signed after more than 20 years of negotiation, the agreement recognizes 38 products as original from the Brazilian territory, which increases the protection and promotes the national industry in the European market.
According to the agreement, cachaça is one of the products whose geographical indication has been recognized, guaranteeing the exclusive use of such expression to national productions. In addition, in case of interest to the use the word “cachaça”, the product manufactured cannot be composed of any substance other than cane sugar.
Due to these requirements, the Brazilian beverage is expected to acquire more space in the European market and a significant increase in the number of exports to the region.
The agreement also foresees changes in the denomination of cheeses produced in the European Union, with the aim of recognizing parmesan, gorgonzola, grana and gruyère cheeses as geographical indications. In fact, new producers will find it more difficult to sell parmesan cheese and must comply with the criteria established in the agreement.
The free trade agreement will soon be submitted for approval at the Congress of Mercosur’s country members and the European Parliament.
More information, in Portuguese, is available at https://www.gazetadopovo.com.br/agronegocio/acordo-com-uniao-europeia-abre-mercado-bilionario-para-a-cachaca/ and https://www1.folha.uol.com.br/mercado/2019/07/apos-acordo-novos-produtores-vao-ter-que-mudar-nome-de-parmesao-diz-associacao.shtml