BOTTLING OF QUALITY WINES PRODUCED IN
SPECIFIED REGIONS
(18900)
6356/98
COM(98) 86
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Draft Council Regulation amending Regulation (EEC) No. 823/87 laying down special provisions relating to quality wines produced in specified regions.
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Legal base: |
Articles 36 and 37 EC; qualified majority voting
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Department: |
Agriculture, Fisheries and Food
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Basis of consideration:
| Minister's letter of 24 July 2000
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Previous Committee Report:
| HC 155-xxiii (1997-98), paragraph 8 (1 April 1998)
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To be discussed in Council:
| No date set |
Committee's assessment:
| Politically important |
Committee's decision:
| Not cleared; awaiting further information
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Background
3.1 The wine régime under the Common
Agricultural Policy includes special provisions relating to quality
wines produced in specified regions, which enable the Member State
concerned to set minimum quality standards by such means as defining
the area of production, the vine varieties to be grown, husbandry
and wine-making practices, and maximum yields. In February 1998,
the Commission put forward a proposal which would have extended
this principle by allowing Member States to make bottling of quality
wines in the specified region of production compulsory, subject
to certain conditions. These were that such bottling gives the
wine special characteristics, and that the overwhelming majority
of the operators in the sector are in favour of such an obligation.
The Commission justified this on the grounds that transporting
a wine involves the loss of some of its natural aroma; that the
distinctive characteristics of certain wines are acquired only
after bottling and a certain period of ageing in the bottle; and
that it implied stricter checks on authenticity. There would,
however, have been a five year transitional period during which
operators outside the designated region who had been bottling
a quality wine for three years before the entry into force of
the regulation could continue to do so.
3.2 In commenting on this proposal, the
Government pointed out that, although some Member States currently
required bottling at source, this was the subject of a case before
the European Court of Justice, in which the United Kingdom had
intervened in support of a Belgian bottling company which had
challenged restrictions imposed by Spain. If agreed, the proposal
could affect those in the UK who currently bottle quality wine
bought in bulk from the region of production, and it could set
a precedent for other products with protected designations of
origin (though some UK producers, such as those in the Scotch
Whisky sector, might see this as helpful).
3.3 In the conclusion to our Report of 1
April 1998, we said that we found it odd that the Commission should
have brought this proposal forward whilst a case seeking to determine
the legality of compulsory bottling at source was currently before
the European Court, and that we remained to be convinced that
the Commission had produced an adequate rationale for a measure
which seems to us tantamount to a quantitative restriction on
exports (and could best be left to the market to resolve). We
also said that, before taking a view, we would like to know the
outcome of the consultation which the Government had undertaken,
and to have a better idea of the impact of the proposal on the
bottling of quality wines in the United Kingdom. In the meantime,
we did not clear the document.
3.4 We subsequently received a number of
letters from MAFF Ministers. These indicated that the value of
imports of bulk quality wine was around £20 million, and
that between 12 and 15 bottling firms might be directly affected
by the proposal. Also, although the Scotch Whisky Association
saw certain advantages, other organisations, including the Wine
and Spirits Association, were opposed. We were also told that
the Government remained opposed to the measure, but that early
discussion in the Council appeared to be unlikely until the European
Court had delivered its ruling on the case before it, following
a finding in favour of Spain by the Advocate General.
Minister's letter of 24 July 2000
3.5 We have now received a letter of 24
July 2000 from the Minister of State (Commons) at the Ministry
of Agriculture, Fisheries and Food (The Rt. Hon. Joyce Quin) informing
us of the latest position. She says that the European Court has
now confirmed the Advocate General's Opinion that the Spanish
legislation requiring bottling at source was not incompatible
with Community law, and that accordingly Spain is not in breach
of its Community law obligations. Although the Court had found
against a Spanish supplier of Rioja in an earlier case (on the
grounds that bottling at source could only be justified if this
preserved the particular characteristics associated with the wine
originating in that region), the Court had now been convinced
by new evidence suggesting that, if bottling was not carried out
in accordance with strict requirements in terms of filtering,
clarifying and cooling, the quality might be seriously impaired.
It also accepted other arguments relating to intellectual property.
3.6 The Minister goes on to say that, while
it remains the case that Community law does not explicitly permit
compulsory bottling at source, the Court ruling in favour of Spain
clears the way for other wine regions to introduce similar restrictions.
She adds that the Commission proposal would in its current form
make such explicit legal provision permitting the compulsory bottling
at source of quality wines under certain circumstances, and that
it now remains to be seen if the proposal will be revived in the
light of this judgment. She says that it is not clear if the Commission
considers such legislation is no longer needed, and that the ball
is therefore firmly in the court of the French Presidency, which
has not so far shown any signs of wishing to revive the proposal.
However, should the proposal be tabled for substantive discussion,
she has said she will write to us again indicating the line the
UK proposes to take.
3.7 As regards the impact within the UK,
the Minister points out that about 10% of all wine consumed in
this country is bottled or boxed by those involved in this trade,
and that, although there is unlikely to be any immediate impact
(since the judgment affects only Rioja), UK bottlers could be
adversely affected, depending on how producer organisations in
other wine regions react. She does, however, make the point that
the Office International de la Vigne et du Vin (OIV) recently
recommended a Code of Good Practice for the bulk transport of
wine, based on existing UK guidelines. She suggests that, provided
this Code is adhered to, many of the concerns raised by the Court
should be addressed, and that producers of quality wine may be
less inclined to call for bottling at source.
Conclusion
3.8 We are grateful to the Minister for
this information, from which we note the recent European Court
ruling in favour of Spain. We also note that it is unclear whether
discussion will proceed on the Commission's proposal, but that,
if it does, she will write to us again on the line which the UK
would take. In view of these various uncertainties, and the potentially
adverse effect which the proposal would have on most of the UK
interests involved, we are maintaining our scrutiny reserve.
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