The Wine Trade Group - Overview Statement

The Wine Trade Group is an informal association of national representatives of the wine industry in the New World Wine Producing Countries that is interested in participating in networking and information sharing to provide better access to international wine markets. This group aims to create the opportunities for its industry to achieve growth in the wine markets and to increase responsible wine consumption.

The industry group represents producers from Argentina, Australia, Canada, Chile, New Zealand, South Africa, the United States, and Uruguay. The representatives listed below attended the third Wine Trade Group meeting in Santiago, Chile where the parties agreed to the following agreement.

The Wine Trade Group met in Santiago, Chile, October 4th and 5th, 1999, simultaneously to the New World Wine Group government requesting respectfully the latter to work in the WTO meeting in Seattle according to the statement enclosed; and to develop best efforts to convene on a Mutual Recognition of Oenological Practices Agreement no later than the event to be held by the group in New Zealand in March 2000, in the framework of the principles included in the attached statement.

Position Statement for the World Trade Organization Millennium Round

Considering that our wine industries and consumers have generally benefited from reductions to-date in tariff and non-tariff barriers under the GATT and WTO.

The removal of wine trade barriers has however not been a priority in official previous multi-lateral negotiations.

Therefore, our industries ask the trade ministers of the WTO to make the removal of trade distorting subsidies and barriers to wine trade a priority and specifically:

1. Reduce import duties on wine to a level that will maximize meaningful market access and minimize trade distortions.

2. Eliminate grape and wine production and export subsidies in all of their forms.

3. Insure compliance with existing obligations of WTO members to the agreement on TBT, SPS, and TRIPS.

The TRIPS agreement should not be reconsidered.

Definitions And Principles For The Completion Of A Mutual Recognition Of Oenological Practices Agreement

I. Wine and Oenological Practices Definitions

The Parties to this statement agree to apply the following definitions with regard to regulations affecting imports of wine and oenological practices:

A. Wine

Is a beverage produced by the complete or partial alcoholic fermentation exclusively of fresh grapes, grape must, grape concentrate or products derived from fresh grapes in accordance with oenological practices which are legal under the regulatory system of the country of origin. Finished wine must contain an alcohol content not less than 7% by volume.

B. Oenological Practices

a. Oenological practices are the set of processes and treatments used to transform grapes into must and wine respectively which are legal under the regulatory system of the country of origin.

b. These techniques include viticultural practices, other techniques and materials used to favorably influence the composition, production, quality, health, and style of wine.

c. These techniques respond to changing tastes, growing and climatic conditions and the particularities of a given region or terroir.

II. Mutual Acceptance Of Oenological Practices

The Parties to this Statement shall accept for import, wine that has been produced in accordance with the Oenological Practices of a producing Party. Each Party agrees that Oenological Practices are the subject of domestic laws and regulations in the jurisdiction where the Wine is produced; that each Party has established acceptable mechanisms for regulating the health and human safety factors associated with such Oenological Practices; and that such regulations and standards are acceptable to the country of importation, as equivalent to its Oenological Practice standards and regulations.

The Parties agree that they will not impose restrictions on imported wine inconsistent with this statement.

III. Labeling Of Wines

Labeling requirements shall be transparent and non-discriminatory inter alia WTO rules. The Parties agree that in parallel to the negotiation of an agreement on oenological practices, they will commence negotiations with the serious intent of concluding an agreement for the standardization of rules regarding the regulation of the front wine label.

IV. Dispute Resolution

The Parties must develop a dispute resolution system that will reflect the principles of this Statement. Dispute resolution under the Agreement should meet the following principles:

1. It should recognize that the objective of each government is to protect the health of its citizens.

2. All disputes need to be settled expeditiously so as to minimize the economic consequences to the producer.

3. An independent body of experts shall be convened to attempt to settle any disputes prior to a formal dispute mechanism.

4. All disputes shall be resolved strictly on the basis of scientific evidence.

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