spiritsNEWS September 2018

A stroll through our trade priorities for the months to come

First of all, we warmly welcome the agreement reached by the Commission with the Trump administration in July which puts a break on possible trade war escalation between the US and EU. We look forward to the outcome of the Executive Working Group that was set up to carry a joint agenda forward.

Secondly, we call on the ratification and implementation of the FTAs with Vietnam, Japan and Singapore. FTAs are essential to address tariffs and non-tariffs barriers but also to offer protection to our spirits covered by geographical indications such as Scotch Whisky, Cognac, Polish Vodka. It is important to remember that geographical indications (+240) account for 2/3 of our exports. Another important benefit of FTAs is the inclusion of dispute settlement mechanism based on the WTO which should ensure that agreements are enforced and disputes are settled. The EU-Vietnam FTA (EVFTA) is of particular importance to us because we have been granted a full elimination of 45% import tariff over a 7-year period and we are eager to give the starter very soon now! Indeed, we are facing tough competition (and tax discrimination) in Vietnam and the EVFTA can go a long way in mitigating these concerns. Overall, the EU should aim for the agreement’s ratification and entry into force by the end of 2018 and before the European Parliament elections in spring 2019. This is the only way to ensure that EU Trade Policy continues to deliver on its promise of economic growth, job creation and engagement on issues of sustainable development. We could have mentioned MERCOSUR agreement as well but it is unrealistic to imagine a deal before the next elections despite efforts on both sides.

Thirdly, we strongly believe in the role WTO to secure an open and rules-based trade for the benefits of all and we value in particular the dispute settlement body. We are not naïve and we see the need for reforms to preserve the institution and its role. We agree with Commissioner Malmström: “It is time to stand up for the global order and rules-based trade. Turning back the clock would be a recipe for economic disaster”.

Last but not least, we have always been calling on the Commission to be strict on full and proper enforcement of negotiated FTAs. It is time for CETA to deliver on its promises, and in particular for the spirits drinks by removing remaining non-tariffs barriers. The first meeting of the Wine and Spirits Committee was held in Brussels on 5 July and a long list of topics have been addressed offering clarification on a number of issues such as on GIs’ protection but sadly, leaving open other issues related to commercial practices which should have long been solved. We look forward to faster progress but in trade we trust and we will continue!

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