CHILE: FTA WITH THE EU COVERS LOCAL USE OF

UNCLAS SANTIAGO 001557 SIPDIS E.O. 12958: N/A TAGS: ECON KIPR OTRA CI ETRD SUBJECT: CHILE: FTA WITH THE EU COVERS LOCAL USE OF GEOGRAPHICAL INDICATORS REF: SECSTATE 131291 ¶1. Chile and the European Union negotiated a free trade agreement (FTA) which entered into force on January 1, 2003. Trade negotiators addressed the issue of geographic indicators in the Chile/EU FTA, primarily affecting Chilean wines rather than cheese, meat or other agricultural products. ¶2. In the final text of the agreement, the Chileans agreed to phase out the use of European geographic indicators over a period of five years for their export market, and twelve years for their domestic sales. Chile, in turn, reserved exclusive rights to the term "pisco" although the EU may also decide to allow Peru to use this term to describe the distilled white wine product. (There is a long-running dispute between Chile and Peru over the origin of pisco and ownership of the name.) ¶3. Comment: Given that the Chileans have already negotiated an agreement on the use of geographical indicators with the EU, it is unlikely they would oppose the EU's position on the issue in the WTO. End Comment. YAMAUCHI