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The reforms are aimed at reversing falling sales and
reducing the wine lakes, costing hundreds of millions
of euros to get rid of.
The European Commission says the bloated wine sector
must cut overproduction or risk further decline against
cheaper wines from New World and other overseas producers.
Its plan suggests pulling up unprofitable vineyards,
ending subsidies for massive and costly distillation
of unsold wine into industrial products and harmonizing
labeling to make it more consumer-friendly.
It also wants to ban adding sugar to wine produced
in regions with a cooler climate. The plan is opposed
by the majority of countries in the 27-member bloc.
Vintners in areas with a lack of sun, including Germany,
Austria, Luxembourg and the Czech Republic use extra
sugar in a process known as chaptalisation, to produce
higher-quality wines or to get the right levels of alcohol.
"The blanket ban on sugar is a problem. The European
Commission will have to modify its proposal," said
Czech Agriculture Minister Petr Gandalovic.
The Commission and the Portuguese EU presidency continue
to discuss the draft reform separately with each of
the 27 EU member nations. An agreement on how far the
reform will go could be reached by the end of the year,
diplomats said.
European Union had filed a complaint against India
in WTO due to its high-taxation regime. When the central
government eliminated the Additional Customs Duties
bringing the Customs Duty from 100% to 150%-the limit
agreed by India with WTO, it suspended the complaint,
later withdrawing it. Maharashtra, subsequently, increased
the existing excise duty on wine from Rs.200 per bulk
liter to 150% of the assessable value, which went up
to 200% in a notification announce November 20th.
EU has been silent on the issue since the reduced duty
to 75% from 150% helps the whisky and liquor producers
who have much more to gain due to the bigger liquor
market in India.
Resource: http://www.iht.com
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