3 rd Annual International Wine Technical Forum Presented by WRF Project Overseers Jamie Ferman, US Department of Commerce Tom LaFaille, Wine Institute May 6, 2015 APEC WINE REGULATORY FORUM (WRF) HISTORY AND 2015 ACTIVITIES

ASIA-PACIFIC ECONOMIC COOPERATION (APEC)

ASIA-PACIFIC ECONOMIC COOPERATION Est. by Economic Ministers in : Philippine Year 57% of global GDP 46% of world trade 45% of global population Mission: to promote free and open trade, increase economic integration and technical cooperation, enhance human security, and facilitate a favorable and sustainable business environment.

APEC WINE REGULATORY FORUM (WRF) Established in 2008 with aim to: assist developing APEC economies to implement good regulatory practices for wine eliminate non-science based testing and certification requirements increase wine production, expand trade and create jobs APEC Sponsors: Australia, Canada, Chile, Indonesia, Korea, Mexico, New Zealand, Papua New Guinea, Peru, Russia, Chinese Taipei, Viet Nam, and the United States. Technical Meetings: 2011 (United States), 2012 (New Zealand) 2013 (United States) and 2014 (China) (Australia) with the World Wine Trade Group APEC Funds: $500,000 through 2018

WORLD TRADE IN WINE Global wine exports increased from US$29.35 billion in 2010 to US$36.42 billion in For 21 APEC economies: o wine trade worth US$21.4 billion in 2013 o wine consumption more than doubled from 1990 to 2012 o all but four APEC economies exported wine in 2013 Cost of non-tariff trade barriers = US $1 billion a year.

REGULATORY CONSEQUENCES OF INCREASED TRADE IN WINE Wine is a low risk food product Processed food regulations are misapplied to wine: o different regulatory limits and approaches to testing o costly analyses required for items such as E.coli and Salmonella which cannot survive in wine Results in: o unnecessary obstacles to trade o increased costs for producers o no demonstrable benefit to consumers o decreases resources for higher risk food products

2014 WRF STUDY ON EXPORT CERTS

WRF WORKING GROUPS 2015 GOALS 9 APEC Economies Participate in 4 Working Groups Export Certificates: develop a model APEC wine export certificate for use where certification is required - based on the 2014 consolidated US/China certificate Compendia: complete the compendia on export certifications, food safety, labeling and pesticide MRLs and incorporate into an online database for access by regulators: FIVS-Abridge Enhanced Risk Controls: begin ring tests on key wine parameters; create a compendia of methods of analysis; consider how the Tbilisi Regulatory Principles can be implemented Pesticide Maximum Residue Limits: develop priority lists of pesticides for which Codex MRLs could be progressed

SUPPORT FOR THE WRF APEC 2014 Ministerial Statement To increase wine production, expand trade, and to create jobs in the region, we commit to eliminating unnecessary export certification for wine by 2018 and instruct officials to advance this work. APEC Food Safety Cooperation Forum joint goals on export certification and pesticide MRLs World Wine Trade Group annual joint meetings and lab tours 2014 Beijing Outcomes references the WWTG model of Mutual Acceptance as a means to eliminate unnecessary export certifications Cooperation on joint goals: WTO TBT Notifications Pesticide MRLs Tbilisi Principles presented in 2012, 2013 were taken up in 2014

HOW THE TECH FORUM CAN ASSIST THE WRF The WRF will only succeed in reducing barriers to trade in wine if we can help economies implement good regulatory practices. We look to the International Wine Technical Forum for guidance on how the WRF can help economies implement the Tbilisi Principles.

REFERENCES APEC Wine Regulatory Forum Website The website includes: Meeting agendas and presentations Working Group Reports Yearly Outcomes Statements WRF Press releases Upcoming meeting information

QUESTIONS? APEC WRF Project Overseers Mr. Tom LaFaille, Wine Institute Ms. Jamie Ferman, U.S. Department of Commerce