EUROPE | Wine companies across Europe have warned against the exclusion of wine from a trade deal with the United States.
The Comité Européen des Entreprises Vins (CEEV) has learned with concern that wine and aromatised wines may be left out of the EU trade offer currently being negotiated in the context of a broader agreement with the U.S. administration.
“We are deeply concerned about the potential exclusion of wine from the list of sensitive goods included in the deal package,” said Marzia Varvaglione, President of CEEV.
“The European wine sector is already navigating an extremely difficult period, and the definitive establishment of an ad valorem tariff would only amplify this crisis and hurt thousands of wineries and grape growers across the EU. We therefore call on the European Commission to ensure that wine and aromatised wine products remain an integral part of the negotiation package with the U.S. administration.”
The United States of America remains the largest export destination for EU wines, representing 27 percent of EU wine exports in value and 21 percent in volume. The US wine market is fundamental for the economic sustainability of the EU wine sector and the rural communities it sustains.
The damage to EU wine overseas sales of the 10 percent US import duty in place since April is estimated to be around 12 percent. If the US duty was set in the range of (17-20) percent, and considering the current currency rate, USD lost 15 percent compared to EUR, the estimated damage would reach 30 percent.
The assessment of EU-U.S. wine trade relations must go beyond export statistics. The assessment of the US economic surplus that the US holds in the sale of EU wine shall also be part of the equation.
“European wine exports do not harm the U.S. economy, on the contrary, they support it,” said Ignacio Sánchez Recarte, Secretary General of CEEV.
“Because of the three-tier system for alcohol distribution in the US, separation of producer, distributor and retailer, it is estimated that for every USD 1.00 generated by European wine exports to the U.S., American distribution and hospitality sectors earn USD 4.50. The EUR 4,88 billion EU wine exported to the US in 2024 would have generated roughly USD 22 billion revenue for US companies across the tree-tier.” he added.
Wine is a win-win relationship that must be protected, not undermined. Wine should not be viewed as a weak point in the negotiations, but rather as a strategic and mutually beneficial asset.
The EU and U.S. wine sectors have consistently opposed the imposition of tariffs on wine trade. On both sides of the Atlantic, CEEV has strongly supported free and fair trade and open markets for wine between the EU and the U.S.
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