Brussels, 15/09/2005 (Agence Europe) - On 15 September, the EU announced that the European Union and the United States have reached a first phase agreement on trade in wine 'which will protect EU wine names and secure the EU's biggest and most valuable wine market', explains the Commission. The package of measures concern wine-making practices and US wine import procedures, but does not cover the big issues where the EU and the US are still divided, namely protecting European geographical indications in the United States, and wine labelling rules. The main areas of the EU-US wine trade accord are:
Denominations. Under the accord, the US administration will make a proposal to Congress to change the status of 17 EU wine names (Burgundy, Champagne, Chablis, Chianti, Claret, Haut-Sauternes, Hock, Madeira, Malaga, Marsala, Port, Retsina, Rhine, Sauternes, Sherry and Tokay) currently considered semi-generic terms in the US, and limit their use in the US. The US and EU explicitly recognise each others' wine names as “names of origin”.
Labelling. The US accepts the main principles of EU labelling rules and agrees to seek to resolve any bilateral issues concerning trade in wine through informal bilateral consultations rather than through dispute settlement mechanisms. The US is allowed to use under certain conditions and for a limited period of time, 14 EU traditional expressions (Château, classic, clos, cream, crusted,/crusting, fine, late bottled vintage, noble, ruby, superior, sur lie, tawny, vintage and vintage character).
Wine-making practices. The EU recognises the US wine-making practices which are currently approved in the US. However, those practices which are not covered by existing EU derogations will only be accepted for wines exported to the EU once the US changes the status of the 17 EU wine names which are considered as semi-generics in the US.
Certification. EU wine exports, including exports of wines below 7% of alcohol, are exempted from the US certification requirements adopted in late 2004 included in the bio-terrorism law and the Miscellaneous Trade Bill. Once the US has changed the status of the 17 EU wine names currently considered as semi-generics in the US, it will benefit from very simplified certification requirements in the EU.
A second phase of negotiations will start 90 days after the date of entry into force of the agreement and will, among other things, include a dialogue on geographical indications, a dialogue on the matter of names of origin including the future of the semi-generic terms, a dialogue on the use of traditional expressions, low alcohol wines, certification, wine-making practices and the creation of a joint committee on wine issues. Both parties also agreed to exchange views on wine matters affecting international trade and on how international cooperation covering wine matters might be best structured.
Mariann Fischer Boel, Commissioner for Agriculture and Rural Development, welcomed the agreement: "I am delighted we have managed to finalise this very important agreement, after 20 years of on-off negotiations. The US is our biggest market, importing EU wine worth about € 2 billion in 2004. This deal will remove the legal uncertainty which has hung over this trade for several years and benefit producers on both sides of the Atlantic.
Twenty years ago, the European Union got the United States to recognise the notion of geographical indications in exchange for accepting wine produced in the United States using industrial methods not allowed in Europe. These derogations are extended every year and have made it possible to continue with a normal wine trade, but the United States refuses to budge on the issue of denominations. Things changed recently when the United States anti-bioterrorism law of December 2004 foresaw a stricter authorisation (certification) procedure for wine imported after 1 January 2005 for which there are not bilateral agreements on wine-making practices. To avoid complications at the World Trade Organisation and enhance protection of European wine exports to the United States (40% of EU wine exports), the Commission was eager to reach early agreement on recognition of wine-making practices before winning any concessions on the question of wine denominations.