THE EU AND U.S. SIGN AN AGREEMENT

The European Union and the United States signed a wine accord today following twenty years of negotiations. The agreement was approved by the EU agriculture ministers in December 2005 and will help EU winemakers improve their success in the United States, their largest market. The US makes up 40% of EU exports, worth over €2 billion. The two negotiators will resume talks within 90 days on a more ambitious second-phase agreement. "This deal will facilitate access for EU wines to the lucrative US market, where consumers greatly appreciate the quality and long history behind our wines. In today's increasingly competitive market place, it is vital that there are no unnecessary and burdensome barriers for our winemakers,” said Mariann Fischer Boel, Commissioner for Agriculture and Rural Development. The Wine Institute “praises the work of U.S. Trade Representative Rob Portman who signed the bilateral agreement.” The use of European terms such as Port, Sherry and Champagne will be limited in the US while US winemaking practices not covered by EU derogations are now accepted. However, only after US winemakers change the semi-generic names will they be able to ship into Europe. Wine Institute President and Chief Bobby Koch said, “This agreement provides our California wineries with long-term access to European markets so we can make marketing investments with greater certainty. This is an important first step in leveling the playing field, and establishes an environment for continued communication. We are hopeful that the next round of World Trade Organization negotiations will reduce the huge EC subsidies to their wine sector."