New Zealand exporters, particularly those in the wine and spirits industry, stand to gain significantly from enhanced access to the European Market through the most recent EU free trade agreement (FTA). The EU FTA offers protection for New Zealand’s 23 registered wine geographical indications as of 1 May 2024 and promises competitive advantages against other global exporters.

A Geographical Indication (‘GI’) is a label indicating a product originates from a particular geographic area, and has distinct qualities resulting from the location and methods of production used to make it. ‘Champagne’ is one of the best know examples of a GI. In New Zealand, wine producers can only label their products with registered GIs such as ‘Waiheke Island’ or ‘Matakana’ if at least 85% of the wine’s grapes originate from the designated GI location, with the remaining grapes sourced from other regions within New Zealand. GIs play an important role in reassuring customers about the quality and authenticity of a particular product.

A small handful of international GIs are currently protected in New Zealand under the Geographical Indications (Wines and Spirits) Registration Act 2006 (the ‘GI Act’), including Scotch Whisky and Napa Valley wine. In return for the EU’s recognition of New Zealand registered GIs, the Act will be amended to cover 1,975 EU GIs used on a wide range of food and beverage products. Enhanced enforcement measures will also be introduced, giving recourse through the High Court and appointed GI officers.

The upside for the New Zealand wine and spirit industry

Eliminated tariffs

The FTA provides New Zealand wine and spirit exporters with improved access to the EU market by eliminating tariffs on their products. This expanded access should help New Zealand exporters reach more consumers and increase their exports to the EU.

Protec and build brand in EU

The recognition of New Zealand GIs within the EU should help enhance the visibility and reputation of New Zealand wine and spirit brands amongst a market of 450 million people. As consumers become more familiar with New Zealand wines due to increased market access, demand for these products will hopefully grow.

Framework for long-term cooperation with EU

The FTA establishes a framework for long-term trade cooperation between New Zealand and the EU. Wine and spirit producers should use this opportunity to build relationships in the EU and develop strong brands through registered trade marks and a clear brand identity, so as to foster sustainable growth in exports over time.

The downside for New Zealand businesses currently using GIs on non-European goods

Amongst the 1,975 EU GIs about to receive protection in New Zealand are important food and beverage descriptors used by Kiwi traders for many years for non-European goods, all of which will be protected in slightly different ways. Those who have used ‘Gruyère’ or ‘Parmesan’ for a minimum of five years preceding 1 May 2024 can continue to do so. Traders who have used any of the below EU GIs will enter a designated phase-out timeframe. These transition periods span from five to nine years, giving NZ businesses time to sell through stock and develop a rebranding strategy.

All other traders using EU GIs, including balsamic vinegar, mozzarella, vodka and ouzo, will need a fast pivot as restrictions to these terms came into force from 1 May 2024. Unfortunately, simply including words such as ‘like’ or ‘style’ with a name is not enough to prevent infringement of a GI.

Updates to enforcement

The European Union Free Trade Agreement Legislation Amendment Act 2024 brings important amendments to the GI Act such as the incorporation of a revised enforcement framework, including:

• The appointment of ‘GI Officers’ by the Chief Executive to oversee adherence to the restrictions on use of registered EU and NZ GIs. Failure to comply with directives from these officers may lead to an infringement fee or fine imposed by the Court.
• Any individual “with an interest in upholding the restrictions on use of the registered geographical indication" will be able to seek damages, an account of profits or an injunction from the court for a breach under section 107 of the amended Act.
• Border protection measures that mirror the protection offered to registered trade marks, including empowering customs officers to conduct investigations, inspections, interceptions and detain goods suspected of violating restrictions on the use of GIs.

If you’d like to talk about how you can best capitalize on the opportunity to grow your brand in the EU or how to deal with the new restrictions on use of GIs in New Zealand, we would love to hear from you. There is also useful information on the IPONZ website at https://www.iponz.govt.nz/about-ip/geographical-indications/eu-geographical-indications/.