Notable Public Policy Developments Around the World – 20 October 2020

DRINK DRIVE

South Africa – South Africa’s Transport Minister reportedly introduced legislation before the South African Parliament on 13 October 2020 that would completely prohibit having any alcohol in your system while driving on a public road or occupying the driver’s seat of a vehicle while the engine is running. Recent data from the South African Medical Research Council and Unisa reportedly indicates that South Africa has one of the highest death rates internationally resulting from traffic accidents with alcohol use as a high contributor.

RESPONSIBLE CONSUMPTION

Marketing in the Netherlands – Dutch brewers reportedly launched an advertising code, effective 15 October 2020, stipulating that advertising for alcohol-free and low-alcohol beer may not be aimed at people under the age of 18, pregnant women, or those operating motor vehicles. The code applies to Dutch advertising for all beers with an alcohol content of up to 0.5%, including commercials on radio and TV, social media posts, beer labels, and advertising brochures.

ILLICIT ALCOHOL

Costa Rica – The Transnational Alliance to Combat Illicit Trade warns that the introduction of a new tax stamp scheme in Costa Rica to combat the growth of the illicit alcohol trade will be ineffective against unrecorded alcohol trade. They note that a tax stamp system in Ecuador reportedly cost taxpayers three time more than the revenue it generated and a tax system in Mozambique reportedly failed to deter illicit trade in alcohol, which increased from 60 percent to 73 percent over four years.

Italy – Italian police broke up a sophisticated operation producing counterfeit Sassicaia wine, using bottles and packaging that were reportedly identical to the originals. The group reportedly was turning out 700 cases per month but it is unclear for how long the operation had been in existence. A 2018 OECD report estimated that counterfeiting cost Italian food and drinks makers 4.2 billion euros in lost sales.

MINIMUM UNIT PRICING

Research news – A study from the University of Victoria in Canada reportedly suggests that minimum unit pricing for alcohol beverages could substantially reduce hospital stays and deaths related to alcohol. In one scenario, the study predicted that alcohol-attributable deaths in Québec, a province that has yet to institute such a policy, would be cut by 11.5 percent and hospital stays by 16.3 percent with the introduction of a minimum unit price of CAN$1.75.

• The researchers apparently used a new, open-access model – the International Model of Alcohol Harms and Policies (InterMAHP) – which has been used to estimate alcohol harms in other countries and to limit the potential health impacts of alcohol policies.

TRADE

EU-USA – The United States has reportedly offered to settle the aircraft subsidy dispute with the European Union by removing its tariffs on wine, whisky, and other products if Airbus repays billions of dollars in aid to European governments. The imposition of $7.5 billion in U.S. tariffs over Airbus subsidies has begun to have a severe impact on European imports into the United States. Meanwhile, the European Union reportedly appears prepared to ask the World Trade Organisation on 26 October 2020 to endorse a $4 billion hike in WTO-sanctioned retaliatory EU tariffs on U.S. goods.

• President Trump threatened to “strike back harder” if the EU imposes tariffs on U.S. goods, but efforts are underway to calm the situation, especially with the approach of the U.S. Presidential election, suggesting that further retaliatory action will not be taken before then.

Brexit – This article argues that a no-deal Brexit would hold disastrous consequences for the UK’s wine sector, leading to widespread job losses, dramatic price inflation, significant restructuring, less consumer choice, and adding further economic pain during the coronavirus pandemic and global recession.