spiritsNEWS January 2017

Looking South

Colombia has finally passed the long awaited bill that reforms the legislation for alcohol, removing tax discrimination against imported spirits and increasing transparency on market access rules.  Since 1 January, our operators started to work under the new system even if many uncertainties remain on how the law will be implemented at Federal and local levels.  We will need time to ensure that this reform delivers effectively for our exports. 

The EU-Ecuador FTA also came into force on 1 January 2017.  Ecuador has been and remains a challenging market for us but it is equally promising.  The tariff duties were eliminated on day one and we hope that Ecuador will soon stop imposing the import surcharge that was put in place in March 2015 (15% on spirits).  The deal also provides for the recognition and protection of a number of European spirits Geographical Indications.  Again, implementation will be key as we still face a number of regulatory barriers to our exports which will need to be addressed rapidly. 

The modernization of the EU-Mexico FTA also offers opportunities for EU spirits exporters to improve their competitiveness on this large market.  Last but not least, we can only welcome the positive progress of EU trade deal negotiations with the MERCOSUR region with +/- 200 million consumers.  We support an ambitious deal on tariffs (the MERCOSUR Common External Tariff is set at 20% for spirits) and on Geographical Indications, which are currently inadequately protected in these markets.  Any increase of our exports in these markets, which already produce and consume alcoholic beverages is positive for both tariff elimination and GIs.  It is the result of an increasing consumer demand for premium European products and thus a sign of increased wealth in importing countries, driving sales, jobs and growth in the European regions where they are produced.

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