PLACE NAMES AND PRACTICES: WHAT THE WINE ACCORD MEANS FOR PRODUCERS

Now that the U.S. and E.U. wine agreement has been signed, what exactly does it mean for vintners? Well for starters, U.S. winemakers may continue to use 16 specific semi-generic place names, such as Chablis, Burgundy, Champagne and Port, as long as the labels also exhibit a place of origin. However, only existing brands can use these terms under a “grandfather clause” that protects their investment while future labels must abstain. The European Union must now recognize U.S. place names such as names of states, American Viticultural Areas and counties with AVAs.

The E.U. has agreed to recognize certain U.S. winemaking practices, such as adding wood chips in stainless steel tanks, while the U.S. will continue to recognize existing European practices. German wine-makers were not happy about the new rule and reportedly called for the E.U. to draft a “purity law” to prevent European wine-makers from using wood chips. The Italians, on the other hand, are asking the EU to alter regulations to allow the use of wood chips. Germany did not sign the accord.

Negotiations for the second phase of the deal will begin three months after the first phase goes into effect. According to Decanter Magazine, issues such as the creation of a committee on wine issues, the use of other semi-generic terms and other winemaking practices, geographical names, appellations, low-alcohol wine and seals of approval will be reviewed. The agreement is a huge step for U.S. winemakers as $325 million was gained from exports going into the E.U. last year.