The effects of gis on competitiveness

Abstract

The importance of geographical indicators is continuously increasing and PGI products are currently playing an
important role in the first pillar of the EU quality policy. However, the link between PGI products and their
competitiveness remains unclear and very little research has been conducted on analysing the competitiveness of
products with geographical indication. Therefore, the aim of this paper is to analyse whether products with
protected geographical indication have competitive and/or comparative advantage in European markets. In order
to meet this aim, the paper analyses the competitiveness of traditional fruit spirits produced by NMS in the EU15
markets. The results suggest that the majority of NMS fruit spirits were both competitive and had a comparative
advantage in the EU15 beverages market between 2001 and 2009, although competitive positions have
continuously deteriorated after EU accession. The results also suggest that two-way fruit spirit trade with the
EU15 was ultimately unsuccessful in quality and in terms of price after EU accession, although country
performances differ significantly. From the above results, it appears that NMS are continuously losing market
positions in their traditional fruit spirit sector in the EU15 beverages market despite the fact that the majority of these products have a geographical indication. Meeting future challenges requires that this situation be
acknowledged within agricultural policy-making and targeted policies for PGI producers be implemented such as
the protection of the name of the produce, the enhancement of proper marketing strategies, and the enhancement
of competitiveness of PGI producers.