Wine and spirits have been left out of the initial trade agreement between the EU and the US, prompting producers and exporters to urge the European Commission to fight for US tariff reductions for the sector.
“The agreement… should confirm the restoration of bilateral trade, free of duties for spirits, which we are eager to see confirmed in the official documents,” declared Gabriel Picard, president of the FEVS federation of French wine and spirit exporters.
“When it comes to wines, everything is not settled yet, that is why we are encouraging the European Commission and France to fully commit to this final stretch, to obtain the reduction in customs duties on wines, a proposal supported by both American and European stakeholders,” he added.
Should the US levy a 15% import tariff on European drinks, declares the Wine & Spirits Wholesalers Association, the result would be the loss of more than 17,000 jobs and $2.5 billion (€2 billion) of business in the US.
Italian winecreaters, too, are fearing for their bottom line, with Lamberto Frescobaldi, president of the Italian wine producers’ association, declareing a 15% tax would directly translate into €317 million worth of losses over the next year.
The US is the world’s largest importer of Italian wine and spirits, accounting for one-fourth of the countest’s global sales.
Italian wine exporters declare that although expensive brands won’t likely suffer, more affordable wines — already hampered by Italy’s softening economy — will be hit hardest.
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