Institutions for Protection of Geographical Indication (GI) in the International Market: the Case of tequila and the Challenges for cachaça

Abstract

Public policy for promotion of cachaça exports began in 2000 with the goal of increasing the exportation by means of a strategy involving implementation of a Geographic Indication (GI) of the cachaça and improving its quality. This strategy is similar to that adopted with success by Mexico to promote the productive chain of tequila. It was demonstrated with the work that the strategy has theoretical foundations in the eclectic paradigm, due, among other things, the creation of ownership advantages related to the distinctive sign of GI and the social capital of the group. Moreover, it is demonstrated that the Brazilian case is similar to the Mexican one and can be used as an example, and noted the positive experiences related to increase of exports and attraction of foreign investors, as well as the negative experiences, related to socio-environmental issues. Among the several actions that have been taken in order to implement the public policy to promote cachaça exports, among them: internal definition of the GI cachaça, and the creation of quality standards and certification programs. However, complete implementation of the public policy will only be possible when the GI cachaça is internationally recognized. The underperforming of cachaça exports in the last 10 years can be partially explained by the incomplete implementation of the strategy adopted.