The China-EU Geographical Indications Agreement has officially come into effect. Xuan paper and aged vinegar are going to be popular in Europe!

Just as the three-year Sino-US trade war ushered in a new opportunity with Biden's coming to power, the China-EU Geographical Indications Agreement, which was launched in 2011 and signed on September 14, 2020, finally came into effect on March 1, 2021.

Xinhua News Agency reported that the China-EU Geographical Indications Agreement officially came into effect yesterday. This agreement is the first comprehensive and high-level geographical indications agreement signed by China with a foreign country. The entry into force of the agreement will further strengthen China-EU economic and trade cooperation and benefit consumers and enterprises on both sides of China and Europe.

The average selling price of products protected by the agreement is twice as high

The so-called geographical indication is an important type of intellectual property, which means that the quality of a product is mainly determined by its origin. Yantai apples and Wuchang rice are typical examples.

The China-EU Geographical Indications Agreement is the first major trade agreement reached between China and the EU in many years. It can protect the distinctive agricultural products of both sides, ensure their quality and reputation, and bring premium potential to the products. According to a study previously released by the European Commission, the average price of products with protected names is twice that of similar uncertified products , that is, protected products enjoy a higher sales premium.

This is the first large-scale mutual recognition of geographical indications between China and the EU, with a total of more than 500 geographical indications, covering not only wine, tea, agricultural products, and food, but also Xuan paper and Shu brocade, which represent traditional Chinese culture. These are well-known geographical indications on both sides, such as China's Shaoxing wine, Anji white tea, Shanxi aged vinegar, and France's champagne, Bavarian beer, and Parma ham.

China-EU investment agreement is expected to be reached this year

During the previous negotiations, the United States has been obstructing the negotiations. After all, once the trade cooperation between China and Europe becomes closer, the dependence of both China and Europe on the United States will be greatly reduced. Some time ago, the United States and the British BBC have been talking about the human rights issue in Xinjiang. This is also because Xinjiang plays a very important role in China's Belt and Road Initiative and China-Europe trade.

However, during the pandemic last year, China's outstanding performance and huge market potential allowed Europe to see more possibilities. Deeply binding with the Chinese economy will not only allow the EU to gain a larger share of the Chinese market, but also make the EU's economic recovery more secure. In particular, the trade volume between China and the EU increased by US$649.5 billion in 2020, and China became the EU's largest trading partner for the first time, which made the EU taste the sweetness.

Although the China-EU Geographical Indications Agreement currently still targets agricultural products, this is just an appetizer. What is more noteworthy is that the EU has pledged to push for the completion of negotiations on the China-EU Investment Agreement this year . If the China-EU Investment Agreement can be reached this year, a free trade agreement between China and the EU will become more likely. This is a real feast.

The previous free trade negotiations between the US and the EU encountered great obstacles due to the geographical indication issue . In the past two years, the EU has begun to focus on promoting strategic independence, and the relationship between the US and Europe can no longer go back to the past. Especially when Germany was the rotating president, Merkel insisted that being friendly to China and maintaining close economic ties were more in line with the interests of the EU. In the future, cooperation between China and the EU will be even closer. Entering the European market at this time is undoubtedly the best choice for cross-border sellers.

Cross-border e-commerce market

EU-China Geographical Indications Agreement

China-Europe trade