A wide-ranging support plan for the EU wine sector has been proposed by the European Commission to deal with serious challenges facing producers, from climate change to balancing supply and demand.
Proposals include payments for winemakers wishing to perform green harvesting, promotional support for wine exports, and greater investment support for wineries taking measures to adapt to climate change.
There are also plans to better support new products, such as new standardised ways of describing alcohol-free wines.
EU-wide labelling terms would include ‘alcohol-free’ if the strength does not exceed 0.5% abv, and ‘alcohol-light’ if the strength is above this level but ‘at least 30% below the minimum actual alcoholic strength of the category before de-alcoholisation’, according to the draft plan.
While the proposed support package has been put together over the past year in response to long-term challenges, it arrives amid concerns about deteriorating trade relations between the US and EU, and the prospect of punitive tariffs on wines and spirits.
Leading trade body Comité Européen des Entreprises Vins (CEEV) said that it welcomed the Commission’s efforts to provide greater support for wineries, but also that an urgent solution must be found to avoid a trade war with the US.
‘The wine package will fall short if a trade war involving wine erupts between the EU and the US,’ said Ignacio Sánchez Recarte, secretary-general of CEEV.
US president Trump recently threatened to levy 200% import tariffs on European wines and spirits, fuelling concerns about a spiralling tit-for-tat scenario.
‘Even though the 200% tariffs on EU wines have not been applied, the closure of the US wine market to our wines is already a reality, as importers have halted all shipments for fear of the potential tariffs,’ said Sánchez Recarte.
‘This is costing EU wine companies €100 million per week.’
Beyond the immediate risk of tariffs, the European Commission said that its new support package is a response to a wine sector under strain and would help to keep the industry competitive.
This isn’t the first time that the EU has sought to intervene to help the bloc’s wine sector. Major reforms were instigated back in 2008, including a widespread scheme to grub-up vines, as the sector also faced issues related to surplus production and declining consumer demand.
However, the EU still accounts for around 60% of world wine production.
‘The EU wine sector is a cornerstone of Europe’s cultural and economic fabric,’ said the Commission last week. ‘[It] plays a vital role in rural economies and is closely linked to European traditions, gastronomy, and tourism.’
Related articles
German winemakers plant French grapes as climate warms
France proposes €120m plan to uproot vines
Bordeaux gets alcohol-free wine shop as times change
The post EU unveils support plan for under-strain wine sector appeared first on Decanter.
Source : https://www.decanter.com/wine-news/eu-unveils-support-plan-for-under-strain-wine-sector-553850/
