Docstoc

World Wine Trade Group presentation - Welcome To PMG.org.za

Document Sample
World Wine Trade Group presentation - Welcome To PMG.org.za Powered By Docstoc
					        WORLD WINE TRADE GROUP

  AGREEMENT ON MUTUAL ACCEPTANCE OF
       OENOLOGICAL PRACTICES
AGREEMENT ON THE REQUIREMENTS FOR WINE
              LABELLING


BRIEFING TO THE SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS
                   (NATIONAL COUNCIL OF PROVINCES)
                             20 JULY 2010
              WORLD WINE TRADE GROUP
• The World Wine Trade Group (WWTG) is an informal group of wine producing countries
  with the following objectives:

  •    Facilitate the trade in wine
  •    Reduce barriers in the wine trade
  •    Share information and collaborate on aspects relating to trade and production of wine
  •    Share and exchange laws & regulations related to wine making practices and wine labelling


• The Group has no formal membership, membership fees and no secretariat.
• The Group is chaired by a rotating chair who functions as secretariat and organises the
  meetings of the group (1 or 2 meetings per year).
• Meetings are attended by both Government and wine industry representatives (in joint
  and separate sessions).



                                                                                        2
           WORLD WINE TRADE GROUP
• The group was formed in 1998.
• Participants: Argentina, Australia, Canada, Chile, Georgia, New Zealand, South
  Africa and the USA.
• The Mutual Acceptance Agreement (MAA) and the Labelling Agreement are at
  the core of the group.
• Negotiations on the MAA were concluded in 2001 and on the Labelling
  Agreement in 2007.
• All members, except South Africa and Georgia, have implemented the MAA .
• The Labelling Agreement is at various stages of ratification, only the USA and
  Chile have completed the necessary internal processes.
• South Africa actively participated in the negotiations of both agreements but
  waited for reforms at the OIV before pursuing accession.




                                                                              3
             WORLD WINE TRADE GROUP
The MAA and Labelling Agreements:

•   Are enabling agreements aimed at facilitating wine trade
•   Are in conformity with the provisions of the WTO
•   Required small changes to South Africa’s wine legislation
•   Will ease the export of wine to signatory countries
•    Accession to the agreements is strongly supported by the South African wine
    industry




                                                                                   4
                  WORLD WINE TRADE GROUP
Mutual Acceptance Agreement

•   Recognizes wine making practices of signatories as compliant with own practices.
•   Includes a common definition for wine.
•   Does not limit rights or obligations under the WTO Agreement.
•   Does not interfere with existing or future agreements on oenological practices with third
    countries.


Benefits for South Africa

• Reduces cost related to documentation and analysis.
• Export logistics to WWTG countries are simplified (e.g. currently DAFF has to provide a
  certificate with each consignment of wine exported to the USA (this requirement will fall away
  once we have acceded to the MAA) – less pressure on government resources.)



                                                                                                5
                  WORLD WINE TRADE GROUP
Labelling Agreement

•   Objective: Accept common labelling information and minimize labelling-related trade barriers.
•   Label information must be clear, specific, accurate, truthful and not misleading to the consumer.
•   Does not prevent national mandatory information (e.g. health warnings).
•   Does not limit rights or obligations under the WTO Agreement.


Benefits for South Africa

•   Creates certainty in terms of labeling requirements for WWTG markets
•   One label for mandatory information can be used for all the WWTG markets
•   Reduces cost – do not have to print a label for each market
•   Simplifies entry into and export logistics to these markets




                                                                                               6
WORLD WINE TRADE GROUP
Legislative changes required to accede to the two agreements:

• The Liquor Products Act, Act 60 of 1989 had to be amended to provide for these
  agreements
• The LP Act deals with production, compositional and labeling requirements, as well as
  import and export certification of liquor products
• Table 6 of the regulations was amended in 2008 to ensure that wine containing
  Pimarizin is not exported to the WWTG countries (Pimarizin is not allowed to be added
  to wine in these countries, although there is no food safety risk in terms of its use. It is
  allowed on cheese and sausages in Europe and other countries and it works effectively
  to prevent the formation of moulds)
• Section 16 and 27 of the LP Act was amended in May 2009 to allow for the
  implementation of the provisions of the MAA and Labelling agreement.




                                                                                             7
            WORLD WINE TRADE GROUP
  Future Work of the Group include:

• Memorandum of Understanding on Certification Requirements

      to further reduce and ease certification for wine trade


• Second Phase Labelling Agreement

     To address sustainability labelling (e.g. Greenhouse gas emissions, impact on
      environment)


• Labelling for allergens (e.g. possibility to use pictograms)
• Co-ordination with regard to Maximum Residue Levels
• Outreach in Asia (e.g. China to attend next meeting)

                                                                                      8
           WORLD WINE TRADE GROUP
International Organisation for Wine and Vine (OIV)

• OIV is an Intergovernmental organisation based in Paris, France (SA has been
  a member since 1963)
• OIV is a scientific and technical organisation and provides international
  standards and guidelines for wine, vine and wine-based beverages, new wine
  making practices and technologies.
• OIV went through a review process and the “new” OIV was established on 3
  April 2001(prior to this countries were concerned that OIV was too Eurocentric)
• The USA and Canada are the only WWTG participants that are not members of
  the OIV.
• DAFF sees no conflict between OIV and WWTG as the two organisations have
  different fields of work and objectives and compliment each other (WWTG
  focus on enhancing trade, while the OIV has a scientific and technical focus)


                                                                               9
                AGRICULTURAL EXPORTS: MAJOR PRODUCTS
                                2008

                                                Wine
                                                14%



                    Other
                    36%
                                                           Citrus fruit
                                                              13%




                                                          Maize (corn).
               Wool                                           10%
               3%

                                                       Grapes, fresh or
               Fruit juices                                dried.
                   3%                                       7%
                                                   Apples, pears and
                    Canned Fruit                       quinces
                        3%                                7%
                                   Cane sugar
                                      4%
Source: SARS
               SOUTH AFRICAN WINE EXPORTS
                        (HS 2204)
                          2008




Source: SARS
                                 SOUTH AFRICAN WINE EXPORTS
                                          (HS 2204)
                                         R- MILLION

          7000


          6000


          5000


          4000


          3000


          2000


          1000


               0
                   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008
Source: SARS
                                  SOUTH AFRICAN WINE IMPORTS
                                     INCLUDING ARGENTINA
                                           (HS 2204)
                                          R- MILLION
           180

           160

           140

           120

           100

               80

               60

               40

               20

                0
                    1999   2000   2001   2002     2003   2004   2005   2006   2007   2008

                                                TOTAL     ARGENTINA
Source: SARS
                             WORLD WINE PRODUCTION
                               OIV FORECAST 2007
                                   1 000 000 HL
50
45
40
35
30
25
20
15
10
 5
 0
     Fra          It a     Sp      US    Ar       Ch       Ge            So          Au            Ch
           nc         ly     ain     A     ge       i na     rm            uth           str         i le
              e                              nti                  an             Afr         ali
                                                na                   y               ica         a
                      WORLD WINE CONSUMPTION
                         OIV FORECAST 2007
                             1 000 000 HL
35

30

25

20

15

10

 5

 0
     Fr       Ita     US    Ge            Ch      Sp      UK   Ar        Ru        Ro
       an        ly     A     rm            in      ai           ge        ss        m
         ce                        an         a       n            nt         ia         an
                                      y                              in                    ia
                                                                       a
                          WORLD WINE EXPORTS
                           OIV FORECAST 2007
                               1 000 000 HL
20
18
16
14
12
10
 8
 6
 4
 2
 0
     Ita     Sp      Fr       Au        Ch      US    Ar        Po         Ge        So
        ly     ai      an       st        ile     A     ge        rtu        rm        ut
                 n       ce       ra                      nt          ga        an       h
                                    lia                     in           l         y       Af
                                                              a                              ric
                                                                                                a

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:28
posted:4/13/2011
language:English
pages:16