A 2006 agreement that allowed the sale of U.S. wines using traditional old world terms like Chateau, Clos, Tawny, Superior and Classic etc was terminated last September. Beginning March 2009 wines with such names have been banned for imports into Europe, according to a letter sent Wednesday to Ambassador Ronald Kirk. Many wineries across the country are affected by the EU action, said the letter.
The wine community of the state has been reportedly working with legislators since spring this year including a meeting between members of the Washington Wine Commission and lawmakers in Washington, D.C. The commission would like to see the agreement put back in place until a permanent solution is found for the use of proper words.
"If the European Community's recent action overturning decades-long acceptance of these terms is allowed to stand, these wineries will be required to withdraw brands that have been sold for many years in the European markets," the letter said.
Hundreds of wineries in Washington and other US states could be affected by the new rule and will find themselves unable to export to more than 25 EU-member nations unless they have a trademark in that country.
European wineries have very strict rules protecting wine descriptions and place names and have long cried foul at U.S. vintners' use of geographic terms, such as Champagne, Burgundy, Port and Chianti.
Under a 2006 agreement, U.S. wineries agreed to stop using such place names in order to be allowed to sell wines in European Union markets, but some wineries already using them were allowed to continue. Last fall, that agreement was terminated.
U.S. wine exports touched a record $1 billion last year, according to the Wine Institute, an industry group. Almost $486 million worth of wine was exported to the EU, 9 percent more in 2008 from the previous year.
"If the European Community's recent action overturning decades-long acceptance of these terms is allowed to stand, these wineries will be required to withdraw brands that have been sold for many years in the European markets," they said. "The loss of these markets will financially harm local businesses in the communities we represent."
Wineries can of course export to the EU countries by registering their trademark. For instance, Clos du Val, a family-owned winery in Napa Valley since 1973, continues to export about 2,000 cases to the UK market, under a trademark. It is also working to establish or provide documentation of its trademarks in other EU markets, according to the PR department. Establishing a trademark can be a lengthy process at times.
In India, EU has forced directly or through government intervention most wineries to stop using the place names. When Sula first started producing bubbly, it was known as Sula Champagne (now it is Sula Brut). Indage Vintners, the biggest wine producer used to call itself Champagne Indage. Surprisingly, ‘Port’ allegedly made from molasses and alcohol mixed with some flavours continues to flourish in Goa despite its totally local roots and ingredients which possibly do not have any grape juice. Interestingly, ‘Port’ is still being made in South Africa. |