Proposal for a Council Decision on the conclusion of an Agreement in the form of an exchange of letters between the European Community and the United States of America on matters related to trade in wine
Date: 2005-10-20
Institutions: European Commission
Subjects: European Community, United States, product quality, ratification of an agreement, trade agreement, wine

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 20.10.2005 
COM(2005)519 final 

2005/0210(ACC) 

. 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an Agreement in the form of an exchange of letters  
between the European Community and the United States of America  
on matters related to trade in wine 

. 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

On  23  October  2000  the  Council  authorised  the  Commission  to  negotiate  an  agreement  on 
trade in wine between the European Community and the United States of America. 

These  negotiations  have  been  concluded  and  the  Agreement  between  the  European 
Community and the United States of America on trade in wine as well as an Agreement in the 
form  of  an  exchange  of  letters  between  the  European  Community  and  the  United  States  of 
America  on  matters  related  to  trade  in  wine  was  initialled  by  both  Parties  on  14  September 
2005.  Certain  derogations  from  the  Community  rules  relating  to  wine-making  practices  and 
certain  certification  practices  are  provided  for  in  particular  in  Council  Regulation  (EC) 
No 1037/2001  of  22  May  2001  authorising  the  offer  and  delivery  for  direct  human 
consumption of certain imported wines which may have undergone oenological processes not 
provided  for  in  Regulation  (EC)  No  1493/1999  and  in  Commission  Regulation  (EC) 
No 883/2001  of  24  April  2001  laying  down  detailed  rules  for  implementing  Council 
Regulation  (EC)  No 1493/1999  as  regards  trade  with  third  countries  in  products  in  the  wine 
sector  in  favour  of  wines  originating  in  the  United  States.  These  derogations  will  expire  on 
31 December 2005. Articles 4 and 9 of the Agreement will continue to treat wines originating 
in the United States in the same way but, according to Article 17(2) of the Agreement, these 
provisions  will  only  apply  from  the  first  day  of  the  second  month  following  receipt  of  the 
written  notice  referred  to  in  Article  6(3)  of  the  Agreement.  Therefore  it  was  necessary  to 
negotiate a separate agreement in the form of an exchange of letters to cover the period from 
31 December  2005  until  the  date  of  application  of  Articles  4  and  9  of  the  Agreement. 
Notwithstanding  the  exemption  from  the  US  certification  requirements  for  the  Community 
low-alcohol wines, which is unlimited, this separate agreement is foreseen for a limited period 
of  time  of  three  years,  which  can  be  renewed  for  an  additional  two  year  period  if  the  Wine 
Agreement has entered into force but its Articles 4 and 9 have not yet entered into force. 

This  agreement  should  now  be  adopted  by  the  Council.  To  that  effect,  the  Commission 
submits  to  the  Council  a  proposal  for  the  conclusion  of  the  Agreement  in  the  form  of  an 
exchange of letters. 

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2005/0210(ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an Agreement in the form of an exchange of letters  
between the European Community and the United States of America  
on matters related to trade in wine 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 133  in  conjunction  with  the  first  sentence  of  the  first  subparagraph  of  Article 300(2) 
thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

1 

2 

On 23 October 2000 the Council authorised the Commission to negotiate an agreement 
on trade in wine between the European Community and the United States of America. 

The  negotiations  have  been  concluded  and  the  Agreement  between  the  European 
Community and the United States of America on trade in wine as well as an Agreement 
in the form of an exchange of letters between the European Community and the United 
States of America on matters related to trade in wine was initialled by both Parties on 
14 September 2005. 

Certain derogations from  the Community  rules relating to wine-making practices and 
certain certification practices are provided for in particular in Council Regulation (EC) 
No 1037/2001  of  22  May  2001  authorising  the  offer  and  delivery  for  direct  human 
consumption  of  certain  imported  wines  which  may  have  undergone  oenological 
processes  not  provided  for  in  Regulation  (EC)  No  1493/19991  and  in  Commission 
Regulation  (EC)  No  883/2001  of  24  April  2001  laying  down  detailed  rules  for 
implementing  Council  Regulation  (EC)  No  1493/1999  as  regards  trade  with  third 
countries in products in the wine  sector2 in favour of wines originating in the United 
States. 

The derogations will expire on 31 December 2005. Articles 4 and 9 of the Agreement 
on  trade  in  wine  will  continue  to  treat  wines  originating  in  the  United  States  in  the 
same  way  but,  in  accordance  with  Article  17(2)  of  that  Agreement,  Articles  4  and  9 
will only apply from the first day of the second month following receipt of the written 
notice referred to Article 6(3) of the Agreement on trade in wine. 

OJ  L  145,  31.5.2001,  p. 12.  Regulation  as  amended  by  Regulation 
(OJ L 345, 31.12.2003, p. 24). 
OJ  L  128,  10.5.2001,  p. 1.  Regulation  as 
(OJ L 163, 30.4.2004, p. 56). 

last  amended  by  Regulation  (EC)  No 908/2004 

(EC)  No 2324/2003 

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(5) 

(6) 

(7) 

It was therefore necessary to negotiate a separate agreement in the form of an exchange 
of letters to cover the period from 31 December 2005 until the date of application of 
Articles 4 and 9 of the Agreement on trade in wine. 

The agreement in the form of an exchange of letters should therefore be approved. 

In order to facilitate the implementation of the agreement in the form of an exchange of 
letters,  the  Commission  should  be  authorised  to  adopt  the  necessary  acts  for  their 
implementation,  in  accordance  with  the  procedure  referred  to  in  Council  Regulation 
(EC)  No  1493/1999  of  17  May  1999  on  the  common  organisation  of  the  market  in 
wine3,  including  any  necessary  prolongation  of  the  derogation  provided  for  in 
Regulation (EC) No 1037/2001, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The Agreement in the form of an exchange of letters between the European Community and 
the United States of America on matters related to trade in wine (hereinafter referred to as “the 
Agreement”) is hereby approved on behalf of the Community. 

The text of the Agreement is attached to this Decision. 

The President of the Council is hereby authorised to designate the person empowered to sign 
the Agreement in order to express the consent of the Community to be bound thereby. 

Article 2 

Article 3 

The  Commission  is  hereby  authorised  to  adopt  the  necessary  acts  for  implementation  of  the 
Agreement, in accordance with the procedure referred to in Article 75(2) of Regulation (EC) 
No 1493/1999,  including  any  necessary  prolongation  of  the  derogation  provided  for  in 
Regulation (EC) No 1037/2001. 

Article 4 

This Decision shall be published in the Official Journal of the European Union. 

Done at Brussels,  

For the Council 
The President 

3 

OJ  L  179,  14.7.1999,  p. 1.  Regulation  as  last  amended  by  Regulation  (EC)  No 1428/2004 
(OJ L 263, 10.8.2004, p. 7). 

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ANNEX  

AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS 

BETWEEN 

THE EUROPEAN COMMUNITY AND THE UNITED STATES OF AMERICA 

ON MATTERS RELATED TO TRADE IN WINE 

A. Letter from the Community 

Dear Sir, 

I  have  the  honour  to  confirm  the  following  understanding  reached  between  the  European 
Community (hereinafter the “Community”) and the United States of America (hereinafter the 
“United States”) in connection with the Agreement between the European Community and the 
United  States  of  America  on  Trade  in  Wine  (the  “Wine  Agreement”)  initialled  on 
14 September 2005. 

1. 

2. 

3. 

Taking into account the need not to disrupt trade in wine between the Parties pending 
the entry into force of the Wine Agreement and in particular the date of application of 
its Articles 4 and 9 as provided for in its Article 17(2), the Community shall continue 
to apply: 

(a) 

its authorisations regarding wine-making practices in effect as of the date of this 
letter for wines originating in the United States set forth in Council Regulation 
(EC) No 1037/2001, and prolonged by Council Regulation (EC) No 2324/2003; 
and 

(b) 

the certification requirements in effect as of the date of this letter specified in 
Commission Regulation (EC) No 883/2001. 

Provided  that  the  conditions  in  paragraphs  1(a)  and  1(b)  are  satisfied,  the  United 
States  shall  not  restrict,  on  the  basis  of  either  wine-making  practices  or  product 
specifications, the importation, marketing or sale of wine originating in the territory 
of the Community that is produced using wine-making practices and procedures that 
are authorised under laws, regulations and requirements of the Community as of the 
date of this letter, and the United States accepts those practices and procedures within 
the meaning of Section 2002(a)(1)(B) of US Public Law 108-429. This undertaking 
by  the  United  States  is  with  respect  to  wine  that  falls  within  the  scope  of  the  Wine 
Agreement and, in particular, Article 3 thereof. Measures taken by either Party for the 
protection of human health and safety are outside the scope of this undertaking. The 
agreement hereinafter described does not contain any requirement for a certification 
by  the  Community  that  the  practices  and  procedures  used  to  produce  wine  in  the 
Community constitute proper cellar treatment within the meaning of Section 2002 of 
US Public Law 108-429. 

Recognising  that  the  Wine  Agreement  does  not  apply  to  wines  with  an  alcohol 
content  of  less  than  7  percent  (7%)  by  volume,  but  also  recognising  that  such  wine 
originating  in  the  territory  of  the  Community  is  produced  using  the  wine-making 
practices and procedures that are authorised under laws, regulations and requirements 
of the Community listed in Annex I of the Wine Agreement, the United States accepts 
those  practices  and  procedures  with  respect  to  such  wine  within  the  meaning  of 

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Section 2002(a)(1)(B) of US Public Law 108-429 for so long as either the conditions 
of  paragraphs  1(a)  and  1(b)  above  are  satisfied  or  Articles  4  and  9  of  the  Wine 
Agreement  are  in  force.  Furthermore,  the  agreement  hereinafter  described  does  not 
contain  any  requirement  for  certification  by  the  Community  that  the  practices  and 
procedures used to produce wine with an alcohol content of less than 7 percent (7%) 
by volume in the Community constitute proper cellar treatment within the meaning of 
section 2002(a)(1)(B) of US Public Law 108-429. Measures taken by either Party for 
the protection of human health and safety are outside the scope of this undertaking. 

Paragraphs 1 and 2 shall apply until the date of application of Articles 4 and 9 of the 
Wine  Agreement,  as  provided  for  in  Article  17.2  thereof,  but  no  longer  than  for  a 
period of three  years from  the date  of entry into force  of this agreement hereinafter 
described.  Notwithstanding  the  foregoing,  if  Articles  4  and  9  are  not  in  application 
within this three-year period, the period shall be extended for an additional two years. 

Should either Party notify the other of its intention not to sign the Wine Agreement, 
or should it withdraw from the Wine Agreement, the agreement hereinafter described 
shall terminate twelve months after the date of receipt of notification by a Party that 
the  other  Party  does  not  intend  to  sign  the  Wine  Agreement,  or  on  the  date  that 
withdrawal  from  the  Wine  Agreement  under  Article  14  thereof  is  effective,  as 
applicable. 

Either  Party  may  withdraw  from  the  present  agreement  hereinafter  described  at  any 
time by providing written notification to the other Party. Withdrawal shall take effect 
twelve months after the date of receipt of the notification by the other Party, unless 
the  notification  specifies  a  later  date  or  the  notification  is  rescinded  prior  to  the 
specified date. 

4. 

5. 

6. 

If the foregoing is acceptable to the United States, I have the honour to propose that this letter 
and  your  letter  in  reply  confirming  that  you  share  this  understanding  shall  constitute  an 
agreement between the Community and the United States, which shall enter into force on the 
date of your letter in reply. 

Please accept, Sir, the assurance of my highest consideration. 

For the European Community 

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B. Letter from the United States 

Dear Sir, 

I have the honour to acknowledge receipt of your letter of this date which reads as follows: 

“I  have  the  honour  to  confirm  the  following  understanding  reached  between  the  European 
Community (hereinafter the “Community”) and the United States of America (hereinafter the 
“United States”) in connection with the Agreement between the European Community and the 
United  States  of  America  on  Trade  in  Wine  (the  “Wine  Agreement”)  initialled  on 
14 September 2005. 

1. 

2. 

3. 

Taking into account the need not to disrupt trade in wine between the Parties pending 
the entry into force of the Wine Agreement and in particular the date of application of 
its Articles 4 and 9 as provided for in its Article 17(2), the Community shall continue 
to apply: 

(a) 

its  authorisations  regarding  wine-making  practices  in  effect  as  of  the  date  of 
this  letter  for  wines  originating  in  the  United  States  set  forth  in  Council 
Regulation  (EC)  No 1037/2001,  and  prolonged  by  Council  Regulation  (EC) 
No 2324/2003; and 

(b) 

the  certification requirements in effect as of the date of this letter specified in 
Commission Regulation (EC) No 883/2001. 

Provided  that  the  conditions  in  paragraphs  1(a)  and  1(b)  are  satisfied,  the  United 
States  shall  not  restrict,  on  the  basis  of  either  wine-making  practices  or  product 
specifications, the importation, marketing or sale of wine originating in the territory 
of the Community that is produced using wine-making practices and procedures that 
are authorised under laws, regulations and requirements of the Community as of the 
date  of  this  letter,  and  the  United  States  accepts  those  practices  and  procedures 
within  the  meaning  of  Section  2002(a)(1)(B)  of  US  Public  Law  108-429.  This 
undertaking by the United States is with respect to wine that falls within the scope of 
the  Wine  Agreement  and,  in  particular,  Article  3  thereof.  Measures  taken  by  either 
Party  for  the  protection  of  human  health  and  safety  are  outside  the  scope  of  this 
undertaking. The agreement hereinafter described does not contain any requirement 
for  a  certification  by  the  Community  that  the  practices  and  procedures  used  to 
produce wine in the Community constitute proper cellar treatment within the meaning 
of Section 2002 of US Public Law 108-429. 

Recognising that the Wine Agreement does not apply to wines with an alcohol content 
of  less  than  7  percent  (7%)  by  volume,  but  also  recognising  that  such  wine 
originating  in  the  territory  of  the  Community  is  produced  using  the  wine-making 
practices  and  procedures  that  are  authorised  under  laws,  regulations  and 
requirements  of  the  EC  listed  in  Annex  I  of  the  Wine  Agreement,  the  United  States 
accepts those practices and procedures with respect to such wine within the meaning 
of  Section  2002(a)(1)(B)  of  US  Public  Law  108-429  for  so  long  as  either  the 
conditions of paragraphs 1(a) and 1(b) above are satisfied or Articles 4 and 9 of the 
Wine Agreement are in force. Furthermore, the agreement hereinafter described does 
not contain any requirement for certification by the Community that the practices and 
procedures used to produce wine with an alcohol content of less than 7 percent (7%) 
by volume in the Community constitute proper cellar treatment within the meaning of 

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4. 

5. 

6. 

section 2002(a)(1)(B) of US Public Law 108-429. Measures taken by either Party for 
the protection of human health and safety are outside the scope of this undertaking. 

Paragraphs 1 and 2 shall apply until the date of application of Articles 4 and 9 of the 
Wine  Agreement,  as  provided  for  in  Article  17.2  thereof,  but  no  longer  than  for  a 
period of three years from the date of entry into force of this agreement hereinafter 
described.  Notwithstanding  the  foregoing,  if  Articles  4  and  9  are  not  in  application 
within  this  three-year  period,  the  period  shall  be  extended  for  an  additional  two 
years. 

Should either Party notify the other of its intention not to sign the Wine Agreement, or 
should  it  withdraw  from  the  Wine  Agreement,  the  agreement  hereinafter  described 
shall terminate twelve months after the date of receipt of notification by a Party that 
the  other  Party  does  not  intend  to  sign  the  Wine  Agreement,  or  on  the  date  that 
withdrawal  from  the  Wine  Agreement  under  Article  14  thereof  is  effective,  as 
applicable. 

Either Party may withdraw from the present agreement hereinafter described at any 
time by providing written notification to the other Party. Withdrawal shall take effect 
twelve months after the date of receipt of the notification by the other Party, unless 
the  notification  specifies  a  later  date  or  the  notification  is  rescinded  prior  to  the 
specified date. 

If the foregoing is acceptable to the United States, I have the honour to propose that this letter 
and  your  letter  in  reply  confirming  that  you  share  this  understanding  shall  constitute  an 
agreement between the Community and the United States, which shall enter into force on the 
date of your letter in reply.” 

I have the honour to  confirm that the United  States of  America  shares the  understanding  set 
forth  in  your  letter  and  to  confirm  that  your  letter  and  this  letter  in  reply  shall  constitute  an 
agreement between the United States of America and the European Community, which shall 
enter into force on the date of this reply. 

Please accept, Sir, the assurance of my highest consideration. 

For the United States of America 

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