Brussels, 21/03/2014 (Agence Europe) - After the settlement of the polysilicon case earlier this week, the agreement on European wine enables the EU and China to bury the hatchet on the solar panels issue. Both agreements have come just a week before the visit of China's President Xi Jiping to Brussels.
Promised by China in order to find a negotiated solution as part of its anti-dumping and anti-subsidy investigations against European wine (launched in summer 2013), the consultations between Chinese and European wine producers - which started last November - have resulted in an amicable agreement.
In July 2013, China opened an anti-dumping and anti-subsidy investigation into European wine in response to the European Commission setting up provisional duties on Chinese photovoltaic panels. The Chinese investigation targeted around 15 different subsidies in the European wine sector - including national regimes under the rural development policy, promotion programmes in third countries, and support for wine caves.
The memorandum of understanding, which was concluded on 20 March between the European committee of wine companies (CEEV) and the China Alcoholic Drinks Associations (CADA) is based on a commitment from the Chinese wine industry to withdraw its complaint against European wine, and the implementation of technical assistance and cooperation activities between the two parties for an initial period of two years. After the withdrawal of the complaint and the end of the investigation by the Chinese authorities, the European industry will offer the Chinese side technical assistance programmes on wine growing (experimental vineyards and mechanisation techniques), winemaking and quality controls, marketing approaches, wine tastings, and the geographical indications protection system. This assistance will be provided through activities such as hosting study visits in Europe, seminars and other training and traineeship activities. The Chinese wine industry will help the European side organise EU wine tastings in China, to improve wine knowledge among Chinese consumers and promote the appreciation of wine and its culture. Both parties also want to set up permanent information and communication exchanges, monitor the implementation of their cooperation, and collaborate at international level on advocacy activities aimed at improving market access conditions in third countries.
European Commissioner for Agriculture Dacian Ciolos hailed the “very good news”, and welcomed the strengthening of Chinese-European cooperation in agriculture which has taken place over the last four years. While the cooperation has encouraged dialogue between European and Chinese wine growers to find an alternative solution to imposing Chinese anti-dumping duties, the Commission has not been directly involved in the negotiations.
The wine market in China has experienced very important growth since 2007. Exports of EU wine to China stood at €764 million in 2012, of which 71% came from France (€546 million), 11.7% from Spain (€89 million), and 10.1% from Italy (€77 million). In 2012, China absorbed 8.6% of the total EU wine exports, which rose to €8.865 billion. (EH)