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New Zealand to implement Geographical Indication Act

Posted: Monday, 06 April 2015 11:11

New Zealand to implement Geographical Indication Act

April 06: Wine regions such as Marlborough and Martinborough are likely to get boost, a greater international recognition and protection as New Zealand government plans to finally implement the legal system of Geographical Indications (GIs), according to a Press Statement by the Trade Minister Tim Groser and Commerce and Consumer Affairs Minister Paul Goldsmith last week

According to the Press Statement released on April 1 (one presumes it was not a Fools’ Day prank!) Tim Groser said,‘The act will set up a registration scheme for wine and spirit geographical indications, similar to the trademark registration scheme. Being able to register wines and spirits geographical indications here, will make it easier for their users to enforce them in New Zealand. It will also make it easier for our exporters to protect their geographical indications in some overseas markets.’

The Geographical Indications (Wine and Spirits) Registration Act was passed in 2006 but has not  completed the process of implementation so far. Apparently, the government has now decided to speed up the process and make it operational. According to Goldsmith, ‘before it can enter into force, some amendments will be required to ensure that the process for registering GIs runs smoothly. A Bill to amend the Act will be introduced to Parliament later this year, and is expected to be passed by the end of 2015.’

A report in Scoop Media attributes Goldberg as saying, ‘some consumers are prepared to pay a significant premium for wines from certain New Zealand geographic regions. Therefore, the reputation of New Zealand wines must be jealously guarded if we are to continue growing our wine exports. The ability to register geographical indications under the new Act will help our wine industry promote and protect its premium brand from misappropriation or misuse by overseas producers, as well as secure access in certain markets which require government-recognised geographical indications.”

Martinborough was the first wine district to prepare its appellation under New Zealand‘s Geographical Indications (Wine and Spirits) Registration Act 2006.  This pending legislation allows the industry to define and protect the names of its winegrowing regions and localities.

The use of geographical indications by New Zealand producers is largely confined to the wine industry. To be registered, a geographical indication must indicate that a wine or spirit originates from a defined area and that the quality, reputation or other characteristic of the wine or spirit is essentially attributable to that geographical origin. Some examples of the existing G I s internationally are Scotch whisky (generic term like Whiskey cannot be eligible for the GI), Port, Champagne, Napa Valley and Chianti.

Ironically, despite Port having a GI registration in India since 2011 has not been able to stop the Indian producers, especially in Goa making and selling as Goan Port. This is fortified wine made from eating grapes, fortified with the allowed spirits with additives like sugar and colour and passed off as a specialty of Goa. Encouraged by the popularity, Maharashtra producers have also come out with Nashik Port (perhaps they would also apply for G I certification when wine laws are framed and enforced). Since fortified wines attract higher duties, they take the alcohol levels as high as possible (15-16%) by adding sugar. According to the Portuguese embassy the process of legal action is underway. In the meanwhile, about half of the Indian wines consumed (around 1.2 million cases) are the ‘Port’ and other fortified wines.

New Zealand exports wine worth NZ$1.37 billion; about 79% of the wine produced is exported.

Subhash Arora

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