A boost to Cyprus’ small wine industry came last week when the European Union and the United States signed a bilateral wine accord which will bring major benefits for EU wine producers.
The agreement, which was approved by EU agriculture ministers in December 2005, follows 20 years of negotiation.
The US is by far the EU’s largest export market, with annual EU wine exports worth more than EUR 2 bln, or around 40% of EU wine exports in terms of value.
“This agreement provides a clear demonstration that the US and the EU can resolve important and complex issues through bilateral negotiations and both sides are committed to doing so in the future,” said the Commission in a statement.
The EU and US will start talks within 90 days on a more ambitious second-phase agreement.
“I raise my glass to the negotiators for their efforts,” said Mariann Fischer Boel, Commissioner for Agriculture and Rural Development.
In the run-up to the signature lastweek, negotiators from the EU and US finally reached agreement at the end of last summer and the agreement was initialled in Washington on 14 September 2005.
The main elements of the agreement
*Some European wine names, such as Port, Sherry and Champagne, are currently considered as semi-generics in the US. Under the agreement, their use will be limited in the US. The US undertakes to change their legal status to restrict their use in future to wine originating in the EU.
*Existing US winemaking practices not covered by EU derogations are accepted. However, it will only be possible for the US to export such wines after the status of the semi-generic names has been changed. New US wine-making practices will be analysed and only accepted in the EU in the event that no objection is raised. This is not mutual recognition.
*EU wines are also exempted from the 2004 US certification requirements.
*The US and EU have agreed to resolve bilateral issues through informal bilateral consultations rather than through formal dispute settlement mechanisms.
*Given that this in only a first phase agreement, some clear perspectives for the second and more ambitious phase are spelt out. There is a clear commitment to start the negotiations for the second phase agreement no later than 90 days after the entry into force of this agreement.
