News
Releases
Mariann Fischer Boel
No. 75/05
September 15, 2005
EU-US WINE TRADE ACCORD
WILL ENHANCE PROTECTION OF EUROPEAN NAMES AND SAFEGUARD
EU'S BIGGEST MARKET
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. Under the
accord, the US Administration will make a proposal to
Congress to change the status of EU wine names such as
Burgundy, Champagne, Chablis, Chianti, Madeira, Malaga,
Port, Sherry and Tokay currently considered semi-generic
terms in the US and limit their use in the US. The US will
also exempt the EU from its new certification
requirements, accept the main principles of EU labelling
rules and pledge to seek to resolve any bilateral issues
concerning trade in wine through informal bilateral
consultations rather than through dispute settlement
mechanisms. The two sides have also undertaken to build on
the agreement by starting to negotiate a more ambitious
second-phase accord ninety days after the entry into force
of this agreement.
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 twenty 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. The conclusion of this first-phase
agreement will pave the way for future close cooperation
with the US in the wine sector.”
Background
The main elements of the agreement are:
The US and EU explicitly recognise each others’ wine names
as “names of origin.”
The US Administration will propose to Congress to change
the status and to limit of use of seventeen European wine names
[1] which are currently considered as semi-generics in the
US.
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, fourteen EU traditional
expressions
[2].
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 seventeen EU wine names which are
considered as semi-generics in the US.
EU wine exports, including exports of wines of below 7%
alcohol, are exempted from the US certification
requirements adopted in late 2004. Once the US has changed
the status of the seventeen 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 negotiation will start ninety days after the
date of entry into force of the agreement and will, among
other things, include a dialogue on geographical
indications (GIs), 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 agree to exchange views on wine matters
affecting international trade and on how international
cooperation covering wine matters might be best
structured.
[1] Burgundy, Chablis, Champagne, Chianti, Claret,
Haut-Sauterne, Hock, Madeira, Malaga, Marsala, Moselle,
Port, Retsina, Rhine, Sauterne, Sherry and Tokay.
[2] Château, classic, clos, cream, crusted/crusting,
fine, late-bottled vintage, noble, ruby, superior, sur
lie, tawny, vintage and vintage character.
Further Contact Information
Press and Media Relations
Delegation of the European Commission
2300 M Street, NW
Washington, DC 20037
http://www.eurunion.org/PressRoom
Tel: 202-862-9552
Fax: 202-429-1766
