What's in a name? WTO members in appellation tussle

By Jonathan Lynn

CHAMPAGNE, Switzerland (Reuters) - The little Swiss village of Champagne, whose name dates back to the ninth century, has been producing wine for at least 350 years.

But in a bizarre twist to a row that threatens to derail a new global trade agreement, the villagers are unable to label their wine Champagne.

That is reserved for the sparkling wine produced in the French region of the same name -- a right so jealously guarded that France even inserted it into the Treaty of Versailles that ended World War One.

"In this village we no longer have the right to use our own name," said Thomas Bindschedler, spokesman of the Swiss village action committee. "In a market where consumers are increasingly concerned with the accountability of producers, that is fatal."

Differences between World Trade Organisation (WTO) members about the rules for such names or "geographical indications" (GIs) now risk blocking an outline deal in the long-running Doha round of trade talks at a hoped-for meeting of ministers on a date to be set for the coming weeks.

WAR ON TERROIR

In Europe many wines, and some foods such as cheeses, are associated with a particular region or "terroir", where climatic or soil conditions and traditional working methods can lend the product a special quality.

Many countries protect the names, or appellations, of these regions as a brand, whose abuse could mislead consumers.

The Doha round includes drawing up a register of wines and spirits where regional names such as Champagne and those of drinks specifically linked to one country, like Mexico's tequila, would be strictly protected.

The European Union and Switzerland want to extend this register to other products, but many countries are resisting. All in all, "Friends of GIs" amount to about one third of the WTO's 151 members, including the 27 EU states.

For negotiators from Brussels, a Doha deal without tough protection for geographical indications is unthinkable.

The issue is particularly important for food producers in southern EU states such as Italy and Spain.

Italy is determined not to see its quality olive oils and cheeses suffer the same fate as its prosciutto ham from Parma.

The word "Parma" was trademarked in 1971 by a Canadian firm, and Italian exporters are not allowed to sell prosciutto in Canada under the Parma name.

Not all EU producers are bothered.