FOR YOUR INFORMATION
We share below a number of recent developments. As always, we rely on FIVS Members to apprise us of noteworthy matters. Please contact the FIVS Secretariat with items that may be of interest.
International Trade
European Union-United Kingdom: OIV standards recognised in UK-EU agreement – This article notes that the Trade and Cooperation Agreement recently signed between the European Union and the United Kingdom demonstrated the significance of the international standards developed by the International Organisation of Vine and Wine (OIV). Article 2 of Appendix 5-TBT “Wine Trade” refers, for example, to oenological practices recommended and published by the OIV as the relevant international standards. Wines will not need a VI-1 certificate as wines from other non-European countries will, and the OIV reportedly hopes the United Kingdom will participate on related matters.
France-United States: Encouragement re tariffs from U.S. Treasury Secretary? – The French Finance Minister reportedly issued a readout of a phone conversation with the U.S. Treasury Secretary, during which they agreed that trade tensions between the two countries should be reduced. The French Minister emphasised the importance of ending the increased tariffs on French wines stemming from the Airbus aircraft dispute.
United Kingdom-United States: Will Biden ease tariffs? – Although President Biden’s advisers have signaled their desire to repair trade relations with allies strained during the Trump presidency, this author suggests that other international priorities will likely take precedence. Since the round of tariffs in October 2019, sales of Scotch Whisky in the United States are down by nearly one-third, and wine imports below 14% from France, Germany, and Spain are down by almost half. Bourbon and American whiskey sales in Europe have fallen by 43%. Fifty percent of cognac’s global business is now in America, where it is threatened by Trump’s 25% tariffs.
- United States: Will Biden remove wine tariffs? – President Biden’s U.S. Trade Representative nominee may bring about a timely resolution of the large civil aircraft dispute, and she is reportedly expert on the impact that tariffs on wine have caused U.S. businesses. (See other relevant articles here.) Since she is unlikely to be confirmed by the U.S. Senate before the upcoming February carousel date, however, a tariff review will probably not take place until August 2021. The wine industry is reportedly pressing in the meantime for President Biden to issue an executive order that would provide immediate relief from all food and wine tariffs.
Regulatory
Japan: Four additives authorized for wine – On 15 January 2021, Japan’s Ministry of Health, Labour and Welfare issued an order permitting four new additives – ammonium hydrogen sulfite, chitin-glucan, dipotassium DL-tartrate, and polyvinylimidazole-polyvinylpyrrolidone (PVI-PVP) copolymers – in wine making. The Ministry’s order reportedly listed corresponding specifications for the four additives, which are used typically to improve the clarification and stability of wines. These changes appear to be consistent with relevant International Organisation of Vine and Wine (OIV) recommendations.
International Organisations
Global: Outcomes from WHO Executive Board meeting – The 148th session of the World Health Organisation Executive Board, which was held on 18-27 January 2021, focused mainly on the coronavirus pandemic and reportedly concluded with no negative outcomes for the alcohol beverage industry. During discussions on the prevention and control of non-communicable diseases (NCD), nine countries – Austria, Bangladesh, Botswana, India, Israel, Philippines, Sri Lanka, Thailand, and Uruguay – reportedly mentioned alcohol beverages. Movendi International also called on member states to implement SAFER, the WHO’s technical roadmap that outlines five high-impact strategies to help governments reduce the harmful use of alcohol. An associated draft decision calls for the development of a roadmap for implementation of the WHO Global NCD Action Plan 2023-2030 to be developed by member states and relevant stakeholders for presentation during the 150th session of the WHO Executive Board.
Internet Sales
Global: Partnership to establish standards for safe online alcohol sales – Twelve online retailers, e-commerce sites, and delivery platforms have formed a partnership with the International Alliance for Responsible Drinking (IARD) to put mechanisms in place to prevent alcohol beverages from being delivered to minors or adults showing visible signs of intoxication. The group will also promote global standards to support in-country codes and practices for safe online alcohol sale and delivery services. The value of e-commerce may have grown by more than 40% in ten core countries in 2020.
Measurements
France: IOLM launch of World Metrology Day Resource Website – The International Organisation of Legal Metrology has launched its 2021 World Metrology Day Resource Website. Its theme for 2021 is “measurement for health” to create awareness of the role that measurement plays in health – in addition to its central role in scientific discovery and innovation, manufacturing, and trade in improving the quality of life and protecting the global environment.