If products from third countries do not meet these standards, this can cause confusion among consumers and disrupt the 'level playing field' for producers of organic products.
In light of the growing demand for organic products in Europe, this ruling will impact global organic trade. At the same time, it may complicate and increase the costs of importing organic products from third countries.
Central to the case was a complaint from the German herb company Herbaria. This herb producer claimed that their products were identical to herbs from a company in the United States, which also contained some other non-organic ingredients. Those received the EU organic label from Brussels.
The court pointed out, however, that the United States (like some other non-EU countries) has an "equivalence agreement" with the EU. This means the EU recognizes the labor and production criteria of the US as equivalent to those of the EU. As a result, products imported from the US can comply with EU standards and may use the organic logo.
The decision by the European Court of Justice (ECJ) in Luxembourg thus imposes strict restrictions on the use of the EU organic logo on substitute products. The aim is to provide consumers with a guarantee that the product actually meets the EU’s strict requirements for organic food.
The court’s judgment will almost certainly have consequences for the international trade in organic products. The decision makes clear that exporters cannot simply display the EU organic logo, even if their products are labeled organic in their own country.
This could weaken the market position of these countries because the EU logo has marketing value within the European market. After all, the logo is a trusted symbol for consumers who buy organic products, and the absence of this logo can influence their purchasing decisions.
Moreover, non-EU companies will need to adjust their production processes if they want to maintain access to the European market. This 'mirror effect' approach has been increasingly applied in EU trade policy in recent years, especially regarding the import of environmentally harmful products and goods. Through this, Brussels aims to prevent EU producers from being 'left behind' in competition with non-EU counterparts due to European environmental and climate criteria.