1. The Potential Impact of EU and US Developments on the Australian and other New World Wine Industries The Potential Impact of EU and US Developments on the Australian and other New World Wine Industries Wine Industry Outlook Conference Melbourne, Australia 31 October 2003 Bennett Caplan, Esq.

2. The Potential Impact of EU and US Developments on the Australian and other New World Wine Industries: The Potential Impact of EU and US Developments on the Australian and other New World Wine Industries: The Unfolding Market Access Story

3. Where are we today? Australia faces significant challenges: Challenge I: Differing approaches to the wine business Challenge II: The bilateral negotiating process – the EU’s negotiating positions seek to control the internal and international markets Challenge III: There are emerging regulatory/legislative market access challenges for Australian wines, especially vis-à-vis the EU market Thoughts about the future

4. Challenge I: Differing approaches to the wine business The EU Approach Grape grower (producer) driven Grape grower (producer) driven Balance production and consumption through subsidies Balance production and consumption through subsidies Capture the high-end segment by promoting GIs Capture the high-end segment by promoting GIs Protect against market access Protect against market accessVersus The New World Wine Approach Brand/varietal approach Brand/varietal approach Consumer driven Consumer driven Complete portfolios Complete portfolios Export driven Export driven

5. Manifestations of these differing views within the EU High anxiety about the success of the new world wines Apprehension associated with EU enlargement to include Eastern Europe Concerns about EU grower interests

6. Challenge II: The bilateral negotiating process The EU’s negotiating positions seek to control the internal and international markets

7. The EU Approach Hammer out bilateral wine and Free Trade Agreements (FTAs) with new world wine countries (‘divide and conquer’) Hammer out bilateral wine and Free Trade Agreements (FTAs) with new world wine countries (‘divide and conquer’) EU-Australia – Wine Agreement EU-Australia – Wine Agreement EU-South Africa – FTA EU-South Africa – FTA EU-Chile – FTA EU-Chile – FTA EU-Canada – Spirits and Wine Agreement EU-Canada – Spirits and Wine Agreement EU-US – Wine Agreement EU-US – Wine Agreement EU-Argentina – Wine Agreement EU-Argentina – Wine Agreement Implications for Australia

8. The New World Wine Approach Regular meetings to compare notes Plurilateral negotiations Government/Industry partnerships Government/Industry partnerships Hammering out global rules to liberalize the wine trade MAA MAA Labelling Labelling

9. The US Approach US-Chile FTA Sets the bar for other FTAs when it comes to wine trade Sets the bar for other FTAs when it comes to wine trade US-Australia FTA

10. Challenge III: Regulatory/legislative obstacles to market access for Australian wines

11. The EU The new EU wine labeling regulation – 753/2002 EU proposal to introduce mandatory ingredient listing for wines EU regulations on traceability and labeling of products made from GM material EU proposal regarding bottle sizes

12. The US The reciprocity provision Implications for those not party to a Mutual Acceptance Agreement Implications for those not party to a Mutual Acceptance Agreement The Bioterrorism Act

13. Thoughts about the Future Implications in terms of access to markets for Australian and other new world wine producers, principally to the EU Evolution of Rules for Global Wine Trade Continue to support engagement ‘Diplomats’ of the Wine Industries ‘Diplomats’ of the Wine Industries

14. homehome | about | professionals | practice areas | contact alcohol beverage | corporate & commercial | international trade & policy food & agriculture | associations & non-profits | emerging companiesaboutprofessionalspractice areascontact alcohol beveragecorporate & commercialinternational trade & policy food & agricultureassociations & non-profitsemerging companies email: info@kaliklewin.cominfo@kaliklewin.com