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The European Union on Wednesday challenged Washington's assertion that it had won a World Trade Organisation (WTO) case in which the bloc was accused of discriminating against famous foods and wines from elsewhere. US Trade Representative Robert Zoellick said a WTO panel report had agreed that the EU did not provide the same degree of protection for foreign geographical food names - such as Florida oranges and Idaho potatoes - as it did for its own.
In a statement released on Tuesday, Zoellick described the ruling, which is still supposed to be confidential, as a "big win for American farmers and food processors".
But Claude Veron-Reville, trade spokeswoman for the EU's executive Commission, said it was nothing of the sort.
"Contrary to Mr Zoellick, we do not see in the conclusions of the panel any questioning of the European system of protection of geographical names," she told a news briefing.
"The European system ... does not prevent access of named products from third countries. In fact we are very much looking forward to requests for registration ... from third countries, not least the United States, because this is obviously Mr Zoellick's point."
The EU protects some 600 regional food names like Parma ham and Roquefort cheese as well as around 4,000 wines - among them Champagne - by insisting that only those who make the product in the relevant European region can use the name.
Veron-Reville said the EU had not yet received any requests for registration of named products from outside the EU, and if there was any doubt about access to protection, "that's something we are prepared to clarify today".
Zoellick's office said the WTO panel had also agreed with the United States that Europe could not deny US trademark owners their rights - even if they wished to use a name already registered in the EU as a geographic indication.
This question was important in the long-running battle between US brewer Anheuser-Busch and Czech beer firm Budejovicky Budvar over the world-wide use of the name Budweiser.
Anheuser-Busch, the world's largest brewer, complains that Budejovicky Budvar has marketed beer labelled "Budweiser" in European countries where Anheuser has prior rights to the brand.
The European Commission said that, according to the WTO panel, the rights of a foreign company with a registered trademark in the EU could exist alongside those of a local firm that wants to use a geographical indication with the same name.
"The panel report ... accepts the co-existence between geographical names and brand names which have been registered earlier," Veron-Reville said.

Copyright Reuters, 2004

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