Brussels, 23/02/2011 (Agence Europe) - The wine industry and trade sector in the EU has welcomed last Thursday's ratification by the European Parliament (EP) of the free trade agreement (FTA) between the EU and South Korea (details in EUROPE 10318). “This particularly ambitious agreement is a major step forward for the wine sector and will allow an increase of European exports to Korea”, says the Comité Européen des Entreprises Vins (CEEV) in a press release published on 22 February.
This agreement brings great advances for the wine sector. The total and immediate abolition of customs duties will open new prospects for increasing market shares and will bring savings of almost €10 million on the €70 million that European wine exports to South Korea are worth, the CEEV says.
This abolition “restores a level playing field with our Chilean competitors who currently benefit from such conditions”, something that had led to a significant increase in their exports to South Korea. Another major point for the wine sector is that the agreement provides real effective protection for the most famous geographical indications (GIs). The EU, through a pragmatic approach aimed at protecting, in particular, geographical indications with greatest renown and export capacity, succeeded in obtaining recognition of exclusive protection for these European geographical indications and a level of protection equivalent to that in Europe.
“European wines are now leaders on the Korean market. Thanks to this free trade agreement, they will be able to consolidate their position and expand market shares in an emerging country with high growth potential, particularly with regard to the Korean consumer perception of quality wines with higher added value”, said Nicolas Ozanam, Chairman of the CEEV International Trade committee. Moreover, the regulatory environment provides the best known geographical indications with genuine, effective protection, “and opens the door to expanding on the number of GIs in the future”, Ozanam said. (L.C./transl.rt)