Brussels, 19/09/2005 (Agence Europe) - Reactions to the new agreement signed between the European Union and the USA on the wine trade have been mixed (EUROPE 9028). They have been rather positive from governments and the European Commission and rather negative from the European producers.
The Assembly of the Wine-producing European Regions (AREV) received news of the bilateral agreement on the wine trade in this way and immediately called on agriculture ministers from the EU Member States to reject this package. It is also insisting that the Commission begin negotiations with the US again. According to the European Regions Wine-producing Regions Association, which strives to promote the common interests of the wine producing areas in the European and world economy, mutual and reciprocal recognition of all oenological practices set by signatory parties “will ban in the EU any possibility of influencing practices used in the elaboration of wine from third countries and sold in the EU”. Traditional oenological practices, which are an integral part of European wine producing culture, will be threatened, warned AREV, which considers that this agreement will have a detrimental economic effect on European producers. According to the organisation, the agreement “threatens for the first time”, the role of the International Organisation of Vine and Wine (OIV) in defining oenological practices. The AREV claims that in the future, the EU may find it difficult to refuse concessions made to the USA to other third countries. “Reciprocal recognition for oenological practices allowed in each country will become acceptable in world trade and seriously harm European wine-producers”. AREV also asserts that the EU is already granting enormous concessions to the USA with regard to the use of protected European denominations, “concessions that are harmful and unacceptable due to the precedent that they set”.
The Americans have obtained recognition for their own wines and certain oenological practices, such as their use of wood shavings and watering down the wine. In a declaration made to AFP, Xavier Carreau, Managing Director of the Bayle-Carreau company and former president of the CIVB (Inter-professional Committee for Bordeaux wine producers) affirmed that they were getting exploited due to US pressure and economic threats.
French exporters, on the other hand, feel relieved. The French federation of wine and spirits exporters (FEVS) underlined in a press statement that the agreement would allow for their exports to the USA to be secured, which is their number one exports market (1.6 billion euros in 2004 - 21% of all French wine, Champagne and spirits exports. If an agreement with the EU was not forthcoming, the USA had threatened EU countries with compulsory analysis of the products at every delivery and compulsory certification proving that the wine conformed to US oenological practices. Beaujolais wine producers were the first to be threatened this coming October.
There is, however, a prevailing political satisfaction. The US Representative for Trade, Rob Portman said on Thursday that this agreement was positive for US and EU producers alike as it helped establish conditions for the bilateral wine trade. Mariann Fischer-Boel, Commissioner for agriculture affirmed that the arrangement would get rid of the legal uncertainty affecting the wine trade for so long and both sides of the Atlantic would be beneficiaries. During presentation of the draft agreement by the Commission to the Special Agriculture Committee (SAC), France, Spain, Italy, Germany, Greece and Portugal declared that these arrangement were the best they could obtain because the EU had to close the case before the end of the year.