The EU-Canada Wine Agreement: What You Need to Know
For those in the wine industry, a significant development occurred in September 2017 with the signing of the Comprehensive Economic and Trade Agreement (CETA) between the European Union (EU) and Canada. This agreement removes tariffs on wine exports and establishes a more level playing field between the two major wine-producing regions.
Previously, Canada levied a tariff of between 50 and 100 percent on imported wine, which made it tough for European winemakers to compete. Under the new agreement, 98% of tariffs on Canadian wines entering the EU will be removed immediately, with the remaining 2% being phased out over a seven-year period.
In turn, the EU will eliminate tariffs on wines imported from Canada. This is excellent news for winemakers in both regions, as it allows for greater access to each other`s markets and will lead to more competition and innovation.
For Canadian wine producers, the agreement provides an opportunity to expand their exports, particularly to the lucrative European markets. It is expected that the agreement will lead to a more significant presence of Canadian wines on store shelves throughout the EU.
EU winemakers, on the other hand, will get the chance to increase their sales in Canada. This is important as Canada is one of the fastest-growing wine markets globally, with demand for high-quality wines increasing every year.
It`s worth noting that the agreement only covers wines with an alcohol content of 13.5% or less, so fortified wines and spirits are not covered.
The agreement also emphasizes the importance of protecting geographical indications (GIs), which are indications that identify a product as originating from a specific place with specific characteristics. This is critical in the wine industry, as it ensures that consumers are getting high-quality, authentic products that are unique to a particular region.
The EU and Canada have agreed to protect each other`s GIs, meaning that only wines produced in specific regions can use certain names. For example, only sparkling wines produced in the Champagne region of France can be called “Champagne.”
In conclusion, the EU-Canada Wine Agreement is a significant development for the wine industry. It provides greater access to each other`s markets, increases competition and innovation, and ensures the protection of GIs. The agreement is a win-win for winemakers in both regions, and we can expect to see more Canadian wines on European store shelves and vice versa.