U.S. & EU Sign Bilateral Agreement on Wine-Making Practices, Labeling, Importation
On March 10, 2006, the U.S. Trade Representative (USTR) and the European Union (EU) Commissioner for Agriculture and Rural Development signed a bilateral agreement on wine-making practices, the labeling of wine, etc. (March 2006 wine agreement).
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A USTR press release states that the wine agreement is effective immediately; however, USTR sources note that certain provisions of this agreement will come into effect only after certain amendments are made to U.S. laws concerning semi-generic wines.
The March 2006 wine agreement is the first phase for a broad agreement on trade in wine between the U.S. and European Community (EC). The agreement calls for a second phase of negotiations in approximately 90 days to address other outstanding U.S.-EC wine trade issues.
Highlights of U.S. & EU March 2006 Wine Agreement Provisions
The U.S. and EC's March 2006 wine agreement provides for the following (partial list):
U.S. to seek restrictions on certain terms on certain labels of wine sold in U.S. The U.S. will seek to change the legal status of certain terms (i.e., Burgundy, Chablis, Champagne, Chianti, Claret, Haut Sauterne, Hock, Madeira, Malaga, Marsala, Moselle, Port, Retsina, Rhine, Sauterne, Sherry, and Tokay) in order to restrict the use of these terms on wine labels solely to wine originating in the EC, in a manner consistent with the U,S. wine labeling regulations in force as of September 14, 2005, the date a preliminary U.S. and EC wine agreement was initialed. The U.S. will also take measures to ensure that any wine not labeled in conformity with these provisions will not be placed on or will be withdrawn from the market until it is labeled in conformity with the requirements.
Restrictions on use of certain names of origin. Both the U.S. and EC will provide that certain names of origin for wine may be used only to designate wines of the origin indicated by such a name (e.g., Martha's Vineyard, Chianti). Both parties will take measures to ensure that any wine not labeled in conformity with this requirement is not placed on the market or is withdrawn from the market until its labeling is in conformity with this requirement.
Modified wine certification requirements. USTR sources indicate that the wine agreement is intended to result in a more streamlined certification process. Under the wine agreement, the EC will permit wine originating in the U.S. to be imported into, marketed, and sold in the EC if it is accompanied by a certification document, the format and required information as specified in Annex III(a) of the March 2006 wine agreement. In addition, the EC will permit the information on such certifications to be pre-printed, with the exception of the producer's signature and will also allow electronic submission.
Mutual recognition of existing current wine-making practices. Neither the U.S. nor the EC will restrict, on the basis of either wine-making practices or product specifications, the importation, marketing or sale of wine originating in the territory of the other that is produced using wine-making practices that are authorized under laws, regulations and requirements by the other listed in the March 2006 wine agreement and published or communicated to it by the other party.
Consultative process for accepting new modified wine-making practices. If either the U.S. or EC proposes to authorize for commercial use in its territory a new wine-making practice or modify an existing wine-making practice authorized under the laws, regulations, and requirements contained in Annex I of the wine agreement and intends to propose the inclusion of the practice among those authorized in the Annex I documents of the March 2006 wine agreement, it will provide public notice and specific notice to the other party and provide a reasonable opportunity for comment and to have those comments considered.
(See ITT's Online Archives or 09/28/05 and 11/29/05 news, 05092830 and 05112999 1, for BP summaries of the announcement of the wine agreement as well as an interim wine agreement, which preserved the existing status quo and did not implement the changes of the March 2006 wine agreement.)
USTR Press Release (dated 03/10/06) available at http://www.ustr.gov/Document_Library/Press_Releases/2006/March/United_States_European_Community_Reach_Agreement_on_Trade_in_Wine.html
Wine Agreement Text (2006/232/EC, dated 03/24/06) available athttp://www.europa.eu.int/eur-lex/lex/JOHtml.do?uri=OJ:L:2006:087:SOM:EN:HTML