Standards convergence and consumers interest: the case of wine Sylvain NAULIN WTO Public Forum Geneva – 03 October 2014

CEEV - Members

CEEV – European Committee of Wine Companies “Comité Vins” Representative body of the EU Industry and Trade in Wines: 24 national associations still wines, aromatised wines, sparkling wines, liqueur wines and other vine products across the EU. Our companies produce and sell the large majority of wines in Europe. More than 200.000 jobs in the EU more than 7.000 companies, mainly S&M enterprises producing and selling the large majority of European quality wines, with and without GI. More than 90% of EU wine exports. With €8,9 billion annual exports the EU Wine industry contributes to a surplus of €6,5 billion to the EU balance of trade. CEEV is member of

Wine: a specific product… …With specific rules in the EU Wine is an agricultural product Regulated in the CAP (sCMO) Included in agricultural package in international negotiations but also a processed food Covered by horizontal rules Then wine is defined by: The final status of the product: “ Wine shall be the product obtained exclusively from the total or partial alcoholic fermentation of fresh grapes, whether or not crushed, or of grape must » (Annex VII part II of R 1308/2013) The methods of production Wine is the only processed food for which production processes are exhaustively listed (Annex VIII of R 1308/2013 and R 606/2009) 4

A long tradition of standardisation …The definition of wine First international discussions after the phylloxera crisis Important development of frauds with products incorrectly marketed as “wine” Congresses in 1908 (Geneva) and 1909 (Paris): Progresses in proposing a first definition of wine recalling and confirming the principles of the Madrid Convention of 14 April 1891 concerning the suppression of false indications of provenance. The creation of OIV In 1924, 8* countries agreed on the creation of the International Office of Wine Actually, OIV is made up 46 Member states and 12 observers One of the main goals of OIV is :” to contribute to international harmonisation of existing practices and standards and, as necessary, to the preparation of new international standards in order to improve the conditions for producing and marketing vine and wine products, and to help ensure that the interests of consumers are taken into account. » *France, Spain, Italy, Portugal,Greece, Hungary, Luxembourg and Tunisia 5

A difficult convergence A multiplication of standards The international standard of OIV OIV proposes a definition of wine and a positive list of allowed oenological practices but… The transcription of OIV standards is not mandatory for MS 46 countries are members The WWTG (World Wine Trade Goup) Created in 1998 by 7* countries with the aim of « A successful, competitive and growing global wine industry, characterized by social responsibility, sustainability and focus on consumer interests, operating in a climate free of trade-distorting factors. » More based on mutual recognition than normalisation and common standards The Codex Alimentarius Ambition to develop the list of allowed additives for wine Reference used by countries which are nor member of OIV *Australia, Argentina, Canada, Chile, New Zealand, South Africa and the United States (+ Georgia in 2010) 6

Diminution of trade barriers Disparate standards create barriers to trade Example of organic wine (EU vs USA) Before 2012: EU rules only on « wine from organic grapes »: no definition of the « organic wine » and its production standards US rules distinguishes « organic wine » (zero sulfites added) and « wine from organic grapes » (with a limited addition of silfites) After 2012: Defintion of « organic wine » and its production standards in the EU (in particular the maximul level of sulfites) and withdrawal of the category « wine from organic grape » Due to the non-harmonization of standards: EU « organic wine » is not recognized in the USA (due to the addition of sulfites) « Wine from organic grapes » has to be reintroduced for the US market 7

Diminution of trade barriers Disparate standards create barriers to trade Definition of wine and oenological practices Definition of wine could be different in certain countries creating technical barrier Non harmonized authorized oenological practices for winemaking From 2008, EU accepts rthat wines produced in respect of oenological practices recognized by OIV (and not necessary by the EU) could be marketed in the EU Bilateral agreements could be an opportunity to tackle TBT, in particular oenological practices (agreements with the USA, Australia, Chile,…) but… Bilateral agremments are long processes and their multiplication create administrative difficulties Impossible at this stage to have such agreements with all third countries Where putting the limit in terms of acceptance of oenological practices regarding EU/OIV standards? 8

Consumer protection Fair information of the consumers… Definition of wine Harmonized definition of wine reinforced a fair information of the consumers Example of Japan with a wide defintion of wine including other products Misleading of the consumer on the product Unfair competition with products markets as wine Harmonized standards for labelling Necessity to give clear informations to consumer OIV rules for wine labeling indicating what would be the mandatory and optional mentions WWTG agreement on requirements for wine labelling 9

Consumer expectations …preserving diversity and choice With a common framework: single definition of wine and limited list of oenological practices, EU wine sector offers a wide range of high quality products with complemntary drivers PDOs/PGIs Grape varieties Brands Provenance Product identity and authenticity matters for consumers and ensure a fair competition between economic operators 10

Closing remarks Increasing of the importance of standards for the trade of wine: international convergence is a crucial issue for the wine sector For the facilitation of trade by avoiding non tariff barriers and allowing fair competition For the consumers benefit with clear rules of identity and authenticity Important to avoid the multiplication of standards For a more simple framework for economic operators To be more comprehnsible by consumers Necessity to facilitate the convergence of standards for wine by encouraging relationships between Codex Alimentarius and OIV 11

Thank you for your attention! ceev@ceev.eu