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