Protected designation of origin, EU competition law, and free movement of goods

Seminar paper from the year 2007 in the subject Business economics - Law, grade: 72 / A (Excellent), Leeds Metropolitan University, course: EC Business Law, 13 entries in the bibliography, language: English, abstract: 1.1 Introduction The central mission statement laid in article 2 of the treaty of Rome proves that 'the Community shall have as its task, by establishing a common market and progressively approximating the economic policies of member states, to promote throughout the community a harmonious development of economic activities, a continuous and balanced expansion, an increase in stability, an accelerated raising of the standard of living and closer relations between the states belonging to it'. However, it is in the interest of the society that markets perform efficiently. A general principle accepted by economists is that free trade is a condition in which markets optimise output and income levels permanently. The common market in the EU is founded on the general principles of free movement goods whereas inter alia a creation of equal opportunities for trade should be guaranteed. Furthermore there is competition in such markets and the participants in the competitive process can be divided into two groups: on the one hand suppliers of goods and services and on the other hand customers. 1.2 Protected Designation of Origin (PDO) Markets are always influenced by variances. In the last years consumers were changing their perceptions for high quality products. The interest is directed towards to receive products with high quality standards. Indeed, quality can be a key to success therefore the increasing demand for high quality products also benefits producers. As a result the EU adopted the Regulation (EEC) No 2081/92 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs in order to satisfy both producers and consumers needs. Protected designations of origin and geographical indications under Regulation (EEC) No 510/2006 offers the opportunity to buildup local value chains. These value chains are appropriate to satisfy consumer needs, to be conducive to local agriculture and to create jobs in local areas. The EU distinguishes between two conceptions, on the one hand designations of origin (PDO) and on the other hand geographical indications (PGI).