CELEX: 51988PC0159
Language: en
Date: 1988-04-18 00:00:00
Title: Recommendation for a COUNCIL DECISION authorising the Commission to enter into negotiations with a view to concluding an agreement between the European Economic Community and the United States of America on cooperation in the Wine Sector (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 159
Vol. 1988/0047
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM(88 ) 159 final
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                               /V              HJ
                                       c-* ^ ^îy    Brussels / 18 April 1988
                                       4Ì
                            Recommendation for a
                              COUNCIL DECISION
 authorising the Commission to enter into negotiations with a view to
  concluding an agreement between the European Economic Community and
    the United States of America on cooperation in the Wine Sector
                      ( presented by the Commission )
 ---pagebreak---                              Exolanatorv mémorandum
Since the early 1980 's , consultations between the Commission and the United
States of America government agency responsible for the control and
enforcement of certain areas of Federal Legislation ( Bureau of Alcohol ,
Tobacco and Firearms ) have led to cooperation In the Wine sector . In 1983 ,
the Community and the US participated In scientific meetings , and this
ongoing cooperation helped expand the technical knowledge on oenologlcal
processes and encouraged the US to participate In the work of the
International Office of Vine and Wine ( OIV ) In 1984 . In September 1984 , the
BATF published revisions to Its regulations deleting a large number of
substances whose use had hitherto been permitted In the manufacture of wine
and revised the nomenclature employed to make Identification easier . In
November 1983 , the BATF began the legal process to ensure that geographic
names referring to Community wine-growing areas were no longer used as
generic names unless such use was traditional . This process continues . The
Community , for Its part , provided for specific derogations from regulations
governing oenologlcal processes for wines Imported from the US . These
temporary derogations are permitted until 26 July 1988 .
In a   letter of 13 February 1986 from the BATF to the Commission ,       the US
requested that   the temporary derogations provided for , be either granted
permanently or extended for a five year period , from July 1988 .
In light of the benefits that would ensue from further cooperation between
the Community and the US In the wine sector , an agreement is proposed which
would cover the following areas :
1 . Oenologlcal Processes
    The revisions made In the regulations In the United States on the
    nomenclature of oenologlcal processes mentioned above also witnessed the
    prohibition of a number of these processes and greater regulation and
    control In this field . There remain , however , a number of these processes
    which continue to be permitted within the United States but which are
    prohibited within the Community .
    Following extensive discussions within the Council working group on Wine ,
    the Commission recommends that extensions be made to the derogations
    requested by the US .
2 . Import documentation
    Community legislation demands that US wines imported Into the Community
    are accompanied by documents certifying to the provisions of the country
    of origin and giving certain analytical Information . Temporary provision
    has been made that producers approved by the US authorities establish
    these documents themselves . The US authorities have requested that this
    temporary provision be granted for a further period .
    The Commission recommends that this extension be granted to the US .
 ---pagebreak---                                         - 3 -
5 . Protection of geographic names used to designate wines-
    The Community attaches great Importance to the controlled and regulated
    use of geographic names to designate wines . The US has begun to take
    steps to define Its wines through the use of geographic designation ,
    nevertheless , certain wines , known In the US as " generics ", continue to
    employ the terms brought over to the US when wine production was
    Introduced by European settlers .
    It Is In the Community 's Interest to control and protect , where possible ,
    Its wines bearing a geographical ascription , not only within the
    Community , but also In third country markets . The US Is the Community 's
    largest export market and a significant producer and exporter Itself .
    Control and protection of certain Community geographic ascriptions within
    the US would bring Immediate economic benefits , by Inter alia , educating
    the consumer so that he may discern more precisely between products , and
    would help the momentum for            further  protection  of   geographical
    designations In the years ahead .
    The Commission considers that the negotiations should aim at specific
    commitments should be made by the US with regard to the control and
    protection of geographical names referring to Community wine-growing
    areas .
6 . Harmonising rules on Wine Labelling
    Cooperation between the US and the Community with a view to harmonising
    rules on wine labelling could facilitate trade between the Community and
    the US , assure that consumers receive objective , clear and comparable
    Information about the wine they purchase , minimise or eliminate confusion
    among producers and distributors arising from divergent regulatory
    provisions and help reduce international marketing costs associated with
    preparing special labels and maintaining separate Inventories for domestic
    and export markets .
7 . Coopération agalnst Fraud
    The  Commission   has   submitted a   proposal to  the Council  on  rules on
    controls In the wine sector ^ 1 ). Following the establishment of such a
    structure , the Commission and BATF will enter     Into consultations with a
    view to further cooperation on the prevention of fraud In the wine sector .
For these reasons the Commission recommends that          the Council  adopt  the
Directive , the draft of which Is attached hereto .
(1)     OJ N' C 24 , 29.1 . 88 , p. 8
 ---pagebreak---                                      - 4
                             Recommendation for a
                               CQUNCLL   DECISION
                   authorising the Commission to enter Into
                    negotiations with a view to concluding
             an agreement between the European Economic Community
                       and the United States of America
                      on cooperation In the Wine Sector .
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , and
In particular Article 113 thereof .
Having regard to the recommendation of the Commission ,
Whereas It Is In the Interest of the European Economic Community to promote
trade In wine between the Community and the US , and to extend the protection
of Community wines bearing a geographical ascription ; whereas It is In the
Community 's Interest to Increase cooperation between the EC and the US on the
repression of fraud .
HAS DECIDED AS FOLLOWS :
 ---pagebreak---                                       5
                                Sol a Article
The Commission Is hereby authorised to enter Into negotiations with the
United States of America with a view to concluding an Agreement on
cooperation   In   the Wine sector . The Commission shall        conduct   the
negotiations  In consultation with   the Special  Committee provided   for  In
Article 113 of the Treaty and In Accordance with the directives contained In
the Annex to this Decision .
Done at Brussels ,                             For the Counc I I
                                               The President
 ---pagebreak---                                                                         ANNEX
                             Negotiating Direct Ivea
The negotiations shall aim at achieving an agreement whereby :
1 .    The United States of America undertakes to control and protect certain
       geographic names referring to Community wine growing areas .
2.     The European Economic Community undertakes          to grant     certain
       derogations , to wines originating In the US Imported Into the
       Community    for  direct human consumption ,    from the regulations
       stipulating the oenologlcal processes and to extend the temporary
       provision governing the establishment of VI 1 forms for a further
       per lod .
3.     The United States of America and the European Economic Community
       undertake to cooperate further on the harmonisation of rules on wine
        labelling and on cooperation against fraud In the wine sector .
 ---pagebreak---                                                         Ύ
                         FICHE D' IMPACT SUR LA COMPETITIVITE ET L' EMPLOI
    I. Quelle est la justification principale de la mesure ?
        lo promote trade in wine between the Community and US value of EC exports to US in 1986 :      896 Mio ECU
                                                                  value of US exports to EC in 1986 :     7 Mio ECU
  II . Caractéristiques des entreprises concernées
         En parti culier : Wine producers , cooperatives and traders .
        - Y a - t-i l un grand nombre de PME ?             Yes . Industry mixed including small and large
        - note - t - on des concentrations dans des régions
            - éligibles aux aides régionales des E.M. ? wine produced in ail Mediterranean countnes
            - eligibles au Feder ?                       + Luxemburg and Germany . Wine also traded from U.K.
III . Quelles sont les obligations imposées directement aux entreprises ?
         No specific obligations ^. The main aim of the mandate is to grant derogations from wine
         production processes^in the Community and to protect the geographic names of Community
         produce in the US .
 IV . Quelles sont les obligations susceptibles d' être imposées indirectement
       aux entreprises via les autorités locales ?
                             Not applicable
  V. Y a - t - il des mesures spéciales pour les PME ?
       - Lesquelles ?
      The prospective harmonisation of rules on wine labelling between the Commnity and US will
      minimise or eliminate confusion among producers and distributors arising from differing regulatory
      provisions an$i help . reduce costs . associated with special labelling and separate inventories for domes-
 VI . làuel est l effet prévisible Ï                     tic and export markets .
       - sur la compet i t i vi te des entreprises ? Overhead costs associated with separate inventories
                or excessive paperwork will be reduced . This will favour the smaller enterprises .
      - sur l' emploi ?           None
VII . Les partenaires sociaux ont -ils été consultés ?
      - avis des partenaires sociaux
      The current and prospective agreement with the US was addressed in the framework of the Advisory
      Committee for Wine which include offical representatives of producers , cooperatives , traders and
      consumers . The primary concern is that maximum protection possible be granted to Community
      geographic ascriptions of wine in the US .