English Champagne? Geographical Indications (GIs) and productivity after Brexit

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This research would be the first to consider the growth and productivity benefits of Geographical Indications (GIs) in the UK. It will provide an evidence-base for effective policy development and governance in this area post-Brexit. Our project directly addresses the economic challenges and opportunities of Brexit highlighted in the Call Specification, and will support the emphasis of the Industrial Strategy on enhancing UK innovation and productivity.Since 1992 the EU has provided protection for specific agricultural products and foodstuffs. Inspired by the French AOC (Appellation d'Origine Contrôlée) and Italian DOC (Denominazione d'Origine Controllata) systems, protection is typically related to products of a specific geography, traditional manufacturing activity and environment (Cannarella and Piccioni 2011). Across the EU there are currently three types of EU quality designations known collectively as Geographical Indications or 'GIs'. There are 70 registered UK GI's, with another 9 in the application and registration process . Protected Designation of Origins (PDOs) are the strongest designation requiring that agricultural products or foodstuffs are produced, processed and prepared in a specific geographical area, using recognized know-how. Of the 79 UK GIs, 28 are PDOs including Welsh Laverbread, Isle of Man Manx Loaghtan Lamb and a range of locally produced cheeses including Single Gloucester. Protected Geographical Indications (PGIs) have less stringent requirements and require that some stage of the production, processing or preparation of a product occurs in a specific area although raw materials used do not need to come from the locality. There are 45 UK PGIs including Traditional Welsh Perry, Carmarthen Ham, and Yorkshire Wensleydale. Finally, Traditional Speciality Guaranteeds (TSGs) cover products and foodstuffs produced using traditional materials, production methods or composition without any element of geographical specificity. There are currently six UK TSGs including Traditionally Reared Pedigree Welsh Pork and Traditional Bramley Apple Pie Filling. There are currently eight UK applications for GI status including the Forfar Bridie, Broighter Gold Rapeseed Oil, 'Ayrshire New Potatoes'/'Ayrshire Earlies', and The Vale of Clwyd Denbigh Plum. After Brexit the application of the current EU system for the approval and governance of GIs in the UK will cease, and GIs in the UK will be subject to the more basic provisions of the World Trade Organisation TRIPs Agreement. Here, we aim to establish whether GIs are an effective policy instrument for boosting growth and productivity and, therefore, whether developing a UK GI system should be a policy priority post-Brexit. Our project comprises two main elements. First, a look backwards to assess the impact of existing GIs in the UK on growth and productivity. This will be done using best practice econometric approaches and company case studies and provide robust evidence for the value (or otherwise) of GIs. Second, a forward look to identify strategies and processes which could be adopted in the UK to support GIs in the future. This will involve a review of international best practice and a series of regional consultations to identify possible candidate products for future GIs. The development of our project has been shaped by guidance from the lead government departments - DEFRA and IPO - and we will develop a project advisory group early in the life of the project. An impact strategy (see below) will reflect academic dissemination and engagement with related government departments and industry support organisations. The research proposed would take place within the existing ESRC funded Enterprise Research Centre or ERC (see www.enterpriseresearch.ac.uk) which has a focus on policy-related research related to the growth and development of small and medium-sized businesses (SMEs).