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U.S. MISSION TO THE EUROPEAN UNION

Last update:  June 12, 2008

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US-EU Wine Trade Issues

EU-US Wine Agreement

On March 10, 2006, Commissioner Fischer-Boel and Ambassador Portman signed the US-EU wine trade Agreement, marking the end of a first phase in ongoing trade discussions, which began in 1983. The Agreement addresses several key issues, and sets a framework to facilitate future wine trade between the United States and Europe.  Both sides agreed to start a second-phase of the negotiations 90 days after the entry into force of the agreement to address other outstanding U.S.-EU wine trade issues.

Specifically, the Agreement covers fermented grape beverages with an actual alcohol content of not less than 7 percent and not more than 22 percent by volume. It provides for :
 

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Mutual acceptance of existing oenological (wine making) practices - Since 1983, the European Union (EU) has extended short-term derogations, temporarily accepting US wine making practices.  This Agreement removes the continuous uncertainty of these temporary derogations, providing more stable market conditions for US wine exporters.  The US continues to accept current EU oenological practices, and agrees to follow a formalized approval process for new wine making procedures (Article 4, Article 5 and Annex I).

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Certification : Under the terms of the Agreement, the EU will simplify its import certification requirements for US wine.  With the mutual acceptance of wine making practices, the US will exempt EU wine from new US certification requirements for imported wine (Article 9 and Annex III).

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Semi-generic names : The US agrees to seek legislative changes to limit the use of 16 semi-generic names, as well as retsina used on wine labels.  Current US laws permit these names to be used on non-European wine.  The new rules will grandfather existing uses of these semi-generic names, but will prohibit new brands from using these names on non-European wine.  The names covered by the Agreement include: burgundy, chablis, champagne, chianti, claret, haute sauterne, hock, madeira, malaga, marsala, moselle, port, retsina, rhine, sauterne, sherry, and tokay (Article 6 and Annex II).

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Names of Origin : The US and the EU agree to recognize certain of each other's names of origin in specific ways.  While this Agreement does not address the broader issue of geographic indications (as this still remains under the purview of the TRIPs Agreement), the US and the EU note that "each Party's competent authorities shall take measures to ensure that any wine not labeled in conformity with this Article is not placed on or is withdrawn from the market until it is labeled in conformity with this Article"  (Article 7, Annex IV and Annex V).  Commission Regulation 1416/2006 lays down specific rules on the implementation of Article 7 concerning the protection of U.S. names of origin.

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Labeling : The Agreement addresses a number of additional labeling issues.  Article 8 notes that "labels shall not contain false or misleading information in particular as to character, composition or origin."  More specifically, the Protocol on Wine Labeling, sets specific conditions for the use of names of vines, vintage characteristics, production methods, product types and variety names.  See also GAIN Report E36067 "EU Wine Labeling Requirements".

bullet "U.S. and EU reach agreement on trade in wine" - Press Release U.S. Trade Representative - March 10, 2006
 

 

 Links

bullet US/EC Wine Agreement Q&A’s (Alcohol and Tobacco Tax and Trade Bureau- March 2006)
bullet List of third country agencies and laboratories responsible for completing documents which must accompany each consignment of wine into the EU (Official Journal C 139 - June 5, 2008).
bullet List of quality wines produced in specified regions (Official Journal C41 - Feb. 17, 2006)
bullet Commission Communication concerning the US/EU Agreement on trade in wine (Official Journal C176 - July 2007)
 

 


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