Dr Vino's wine blog

A simmering EU-US trade dispute with 22 years of age on it has finally been resolved. The US will not allow its producers to label their wines with semi-generic place names such as Champagne, Burgundy, and Chianti. Nor will the US clamp down on European wine imports as it had threatened to do under the US Bioterrorism Act.

The EU conceded to recognize American winemaking practices, such as the use of oak chips, and American regional names, such as Napa.

Some issues remain unresolved but they will be tackled in future negotiations according to Joe Rollo of the Wine Institute, as quoted in the San Francisco Business Times. They include European tariffs that are twice the size of American tariffs, European subsidies, and governmental export credits.

American exports of wine surged 28% on the back of a weaker US dollar last year to $794 million, reports the LA Times. The EU is the largest market for American exports accounting for about two-thirds of trade. The EU exports $2.3 billion of wine to the US though exports have softened, particularly of some French wines. America is a desirable market because it is growing and will be the world’s largest wine market by 2008 according to Vinexpo. Resolving these simmering disputes should help trade in both directions.

Unfortunately for American consumers, the agreement on names only applies to new wine brands and not existing brands. Travesties such as “hearty Burgundy” and Korbel California champagne will be allowed to continue. That in my view is a disservice to the consumer as well as French growers.