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.
ECONOMIC SUSTAINABILITY
Illicit trade
- Turkey – The leader of the new opposition Democracy and Progress Party (DEVA) reportedly believes the Turkish government policy of taxing alcohol beverages heavily is causing bootlegging. The former deputy prime minister noted that alcohol prices in Turkey are three times higher than those of neighbouring nations. The cost of alcohol and tobacco reportedly surged there by 22.4 percent in June, following government tax increases.
International Trade
- Australia reviews its certification procedures: Australia has just opened a new consultation in updating its export procedures for organic products. This process will entail a review of export compliance issues, as well as traceability matters.
- French wines dropped from new Trump administration tariff list – The Trump administration reportedly intends to impose new tariffs on $1.3 billion worth of French goods in retaliation for new digital services taxes that will fall heavily on American internet companies. A report by the Trump administration last December had recommended tariffs as high as 100% on a list of imports that included wine, but the administration now recommends tariffs at 25% and wine has been dropped from the list entirely. The proposed tariffs will not take effect until in January 2021, reportedly to give the countries time to resolve their differences.
- FIVS member WSTA warns of post-Brexit threat for UK wine trade – Britain’s position as a leading fine wine trading hub reportedly may be threatened if Britain leaves the EU at the end of 2020 without a deal, causing EU rules to apply wholesale to all areas of commerce including wine trading. Whether the UK Government does not understand the economic importance of the UK’s fine wine trading interest, or has not yet considered that sector because its negotiations are proceeding at a higher level, the Wine and Spirit Trade Association (WSTA) is reportedly warning UK wine trade interests that little time remains for effecting needed change. If the no-deal scenario comes to pass, EU producers may decide to ship wine worth 250 million pounds annually directly to Hong Kong and the United States, rather than via the UK.
SOCIAL SUSTAINABILITY
Alcohol addiction treatment
- New Zealand – New Zealand’s Government has reportedly announced additional funding of $32 million over the next four years to strengthen and transform its drug and alcohol addiction recovery services.
Dietary guidelines
- Harder stance on alcohol in new Dietary Guidelines for Americans – A committee updating the Dietary Guidelines for Americans (which are updated every five years) reportedly plans to recommend that individuals who drink limit themselves to a single serving of wine, beer, or liquor per day. Earlier guidelines have indicated that moderate drinking is linked to fewer heart attacks, lower mortality, and keeping cognitive functioning intact with age, but the new guidelines reportedly will indicate instead that drinking less is better for health than drinking more. The committee will submit its guidelines in a report to the U.S. Departments of Agriculture and Health and Human Services, which are scheduled to publish the official dietary guidelines later this year.
Drink Drive
- United States – The U.S. House of Representatives has reportedly passed a $1.5 trillion transportation and infrastructure measure that includes a provision directing the National Highway Traffic Safety Administration to develop a rule within five years requiring advanced drunk driving prevention technology in all new cars. The U.S. Senate is unlikely to take up the legislation, but Volvo has reportedly announced a roll out of new vehicles this year with in-car camera technology aimed at detecting drunk driving.
- Ukraine – Ukraine’s Ministry of Internal Affairs is reportedly advocating legislation that would make individuals who drive while intoxicated three times in one year criminally liable. The First Deputy Minister of Internal Affairs reportedly proposed the imposition of a fine after the first offense, arrest for 15 days for the second offense, and several years in custody for the third offense in one year.