Allegrini 2018

The first response to Trump duties from Brussels: new funds for wine promotion campaigns

Among the novelties, the authorization to change the target markets of the campaigns and to extend them beyond the limit of 5 years
brussels, DUTIES, wine promotion, News
Brussels, the first response to Trump duties

The tones between the USA and Europe are back to rise, with France and its food and wine production, which comes back in the sights of President Trump. Threats of new duties, not even too veiled, short lists ready to go, and an Old Continent that is struggling to move compactly, too often preferring bilateral agreements to shared solutions. However, Brussels has managed to give a first response: the European Commission, in fact, will propose to member countries an increase in the EU contribution to the promotion campaigns for wine, within the Ocm, from 50 to 60% of eligible expenses, as the first response to U.S. tariffs on food products. The draft regulations, which will be presented today for a first discussion, include two other important innovations: they authorize producers to change the target markets of current campaigns, for example by moving them from China to the United States, and to extend them beyond the limit of 5 years. Two important limitations have thus fallen, which have often hampered continuous market coverage, while countries will be able to modify their national programmes, again in the promotion section, during the year whenever necessary. The concessions concern all European producers, even if the US duties only affect exports from Germany, France, Spain and the United Kingdom. Finally, bulk wines, sparkling wines and bag-in-boxes are not subject to the tariffs and are not covered by the new rules proposed.

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