U.S.-E.U. WINE NEGOTIATIONS: AUSTRIAN POSITION

UNCLAS VIENNA 002716 SIPDIS STATE FOR EB/TPP/ABT AND EUR/AGS STATE PASS USTR FOR MURPHY AND BOMER USDA FOR FAS/ITP/SHEIKH, FAS/EAMED/POMEROY, FAS/FAA/DEVER NOT FOR INTERNET DISTRIBUTION E.O. 12958: N/A TAGS: EAGR ETRD AU SUBJECT: U.S.-E.U. WINE NEGOTIATIONS: AUSTRIAN POSITION REF: STATE 127683 ¶1. Summary: On August 11, Dr. Rudolf Schmid, Deputy Head of the Ministry of Agriculture's Wine Department, provided written comments in response to reftel talking points. The response noted that Austria supported the European Commission in all previous proceedings of the U.S.-EU wine negotiations. However, Austria sees a clear need to resolve all controversial international matters (e.g. wine making procedures or denomination regulations) at the WTO-level if an agreement cannot be reached. End Summary. ¶2. The Ministry of Agriculture's statement noted that from an Austrian perspective, the draft agreement binds the United States to make concessions on specific matters (such as protected designations of origin and matter of semi-generic denominations) for the first time. However, these concessions are connected to extensive concessions by the European Union, especially in regards to winemaking procedures. ¶3. Additionally, although Austria is not affected by the debate about semi-generics, Austria expressed understanding for the position of the affected Member States during the proceedings in Brussels. The Ministry noted many "U.S.-regarded" semi-generic denominations are not semi-generic but are European designations of origin. Also, in the matter of traditional indicators, Austria does not believe equivalency exists between U.S. and EU winemaking regulations. ¶4. The Ministry noted that the fundamental question for Austria and the EC is the future of trade relations if a wine agreement is not reached. Austria sees a clear need to resolve all differences (e.g. winemaking procedures, denomination regulations) at the WTO-level. ¶5. Austria supported the European Commission in all previous wine negotiations in Brussels and notes that future concessions need to be made. ¶6. Austria sees an opportunity to establish a well- regulated trade system between the EU and its wine trading partners in the future. van Voorst