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No more whining about geographical indications: assessing the 2005 agreement between the United States and the European community on the trade in wine.


by Rose, Brian

(154.) TRIPS, supra note 7, art. 24(5).

(155.) Conrad, supra note 114, at 42-43.

(156.) See id. at 41-43.

(157.) See Lindquist, supra note 67, at 332 (arguing that "the United States [is] obliged to enter negotiations").

(158.) See Conrad, supra note 114, at 29-34 (asserting that the United States "had tried to limit the minimum protection standards to non-generic appellations of origin for wine, if use of such a name would 'mislead the public as to the true origin of the wine").

(159.) TRIPS, supra note 7, arts. 24(5)-(6); see supra text accompanying notes 137-45, 151-56.

(160.) See Conrad, supra note 114, at 11, 40, 42.

(161.) TRIPS, supra note 7, art. 23(4).

(162.) See Chen, supra note 12, at 29, 55.

(163.) See, e.g., Agreement Between the United States of America and the European Community on Trade in Wine, Sept. 14, 2005, http://www.ustr.gov/assets/Document_Library/Fact_Sheets/2005/ asset_upload_file917_8030.pdf [hereinafter Wine Agreement].

(164.) Corie Brown, Sour Grapes: U.S., Europe in Tussle Over Wine Labeling, J. GAZETTE (Fort Wayne), Nov. 30, 2003, at Bus.lD, available at 2003 WLNR 13270613.

(165.) Sogg, supra note 3.

(166.) See Wine Agreement, supra note 163; see Lindquist, supra note 67, at 324.

(167.) Letter from John M. Walker, Jr., Assistant Sec'y (Enforcement and Operations), U.S. Treasury Dep't, and Stephen E. Higgins, Dir., Bureau of Alcohol, Tobacco and Firearms, to Leslie Fielding, Dir.-Gen. for External Relations, Comm'n of the Eur. Comtys. (July 26, 1983), http://www.fas.usda.gov/itp/agreements/euwine.html [hereinafter Wine Letter[. This letter is considered the United States' official trade document concerning the Accord. Lindquist, supra note 67, at 324 n.134. For the European Community, the Accord was pressed into law by virtue of Council Regulation 1873/84. Council Regulation 1873184, 1984 O.J. (L 176) 6.

(168.) Lindquist, supra note 67, at 324. The 1980s were the infancy of U.S. wine exports. See SPAHNI, supra note 14, at 234 fig.5.10 (charting U.S. exports by year). This spike in exports resulted from California production surpluses during the early 1980s, which forced these wineries to find additional markets for their product. Id. at 234.

(169.) Wine Letter, supra note 167.

(170.) See id. Certification is the process of detailing lab results on the particular characteristics of a wine, including: acidity, alcohol percentage, and levels of sulphur dioxide (a wine preservative). SPAHNI, supra note 14, at 104. It is the normal practice of bilateral agreements for certification to be "accelerated" in the importing country such that the importing country performs "only a few analyses and certification documents delivered by authorities of the exporting country are accepted at face value by the recipient country." Id.

(171.) See Wine Letter, supra note 167.

(172.) See id.

(173.) See id. A viticultural area is defined as "[a] delimited grape growing region distinguishable by geographical features." 27 C.F.R. [section] 4.25.

(174.) Wine Letter, supra note 167. More specifically, the Wine Letter promised "the willingness of the United States to work within the regulatory framework of 27 C.F.R. [section] 4.24(c)(3)." Id.

(175.) See Council Regulation 1873/84, supra note 167, art.1.

(176.) U.S. Officials Signal Acceptance of EU Terms in Wine Talks, But Wait for EU, FOOD & DRINK WKLY., Nov. 2, 1998, available at 1998 WLNR 3673630 [hereinafter Wine Talks]. The United States was able to extract these one year extensions because Europe strongly desired to reach a comprehensive wine agreement that addressed a number of issues. See id. For their part, American exporters benefited from the fairly relaxed certification requirements permitted under the one year extensions. See Daniel Sogg, Trade Bill Could Limit U.S. Wine Lovers' Selection of European Imports, WINE SPECTATOR, Nov. 11, 2002, http://www.winespectator.com/Wine/Daily/News/0,1145, 1887,00.html.

(177.) California News Report, SINOCAST, Dec. 21, 1998, http://www.westlaw.com (follow "Business & News" hyperlink; then search "Sinocast;" then search "California News Report and Wine" restricted by date 12/21/1998).

(178.) Wine Talks, supra note 176.

(179.) U.S. DEP'T OF AGRIC. FOREIGN AGRIC. SERVICE, GAIN REPORT: FRANCE WINE ANN. 2004, 4 (2005), http://www.fas.usda.gov/gainfiles/200501/146118497.doc.

(180.) See Thomas Fuller, U.S. and EU Reconcile Over Glass of Wine, INT'L HERALD TRIB., Sept. 16, 2005, http://www.iht.com/articles/2005/09/15/business/wine.php (discussing the lengthy negotiation period for the new agreement).

(181.) See Sogg, supra note 176.

(182.) Id.

(183.) Id. Expressing the underlying rationale of this legislation, John De Luca, President of the Wine Institute remarked, "If the Europeans would accept that agreement, then this legislation will be superseded." Id.

(184.) Id.

(185.) Charcossey, supra note 2.

(186.) Id. This law was passed in the wake of the September 11th attacks. Id.

(187.) See Brown, supra note 164.

(188.) Id.

(189.) Id. In response to such a move, it is likely that the United States would have taken up legal action with the World Trade Organization. Id.

(190.) March Wine Agreement Press Release, supra note 1.

(191.) Wine Agreement, supra note 163.

(192.) See id. tit. II, arts. 4-5.

(193.) Id. tit. II, art. 4.

(194.) Id. tit. II, art. 5; see also The Wine Institute, Signing of US-EC Trade Agreement Expands Opportunities for Wine, Mar. 10, 2006, http://www.wineinstitute.org/ industry/exports/2006/us_ec_trade_signing.php.

(195.) See Fuller, supra note 180. The addition of oak chips or particles is permitted under U.S. law. 27 C.F.R. [section] 24.246.

(196.) Wine Agreement, supra note 163, tit. III, arts. 6-9.

(197.) The seventeen terms include: Burgundy, Chablis, Champagne, Chianti, Claret, Haut Sauterne, Hock, Madeira, Malaga, Marsala, Moselle, Port, Retsina, Rhine, Sauterne, Sherry, and Tokay. Id. annex 2.

(198.) Id. tit. III, art. 6(1).

(199.) See id. tit. III, art. 6(4).

(200.) Id. tit. III, art. 6(2).

(201.) See id. (requiring that labeling be "in accordance with all regulations ineffect on September 14, 2005," which would include the Bureau of Alcohol, Tobacco, and Firearms regulations).

(202.) See 27 C.F.R. [section] 4.24(b)(1).

(203.) Press Release, U.S. Trade Representative, Trade Facts: United States--European Community Agreement on Trade in Wine (Sept. 15, 2005), http://www.ustr.gov/assets/Document-Library~Fact_Sheets/ 2005/asset_upload-file611_7970.pdf [hereinafter Trade Facts].

(204.) Tax Relief and Healthcare Act of 2006, Pub. L. No. 109-432, 120 Stat. 2922 (2006); see William New, US Congress Passes Legislation On "Semi-Generic" Wines, INTELLECTUAL PROP. WATCH, Dec. 15, 2006, http://www.ip-watch.org/weblog/index.php?p=490.

(205.) President George W. Bush, Remarks at the Signing of the Tax Relief and Health Care Act of 2006 (Dec. 20, 2006), in http://www.whitehouse.gov/news/releases/2006/12/20061220-2.html.

(206.) See Wine Agreement, supra note 163, tit. III, art. 7.

(207.) Id. tit. III, art. 7(1).

(208.) Id. tit. III, art. 7(1), annex IV, pt. A.

(209.) See 27 C.F.R. [section] 12.21.

(210.) Wine Agreement, supra note 163, tit. III, art. 7(2), annex V, pt. C.

(211.) Id. tit. III, art. 7(3).

(212.) Id. tit. III, art. 7(4).

(213.) See id. tit. III. art. 8.

(214.) Id. tit. III, art. 8(1).

(215.) Id. tit. III, art. 8(2). For example, American wine producers may continue to employ the following descriptors on their labels: chateau, classic, clos, cream, crusted/crusting, fine, noble, ruby superior, sur lie, tawny vintage, and vintage character. Id. (citing Protocol on Wine Labeling, pt. A, [section] 2.1(f) & app. I).

(216.) Id. (citing Protocol on Wine Labeling, pt. A, [section][section] 2.1(b), 3.6(a), 3.7(a), & app. IV).

(217.) Id. tit. III, art. 8(3).

(218.) See id. tit. III. art. 9 (allowing for standardized preprinted certifications and applications to be submitted electronically).

(219.) See id. tit. III, art. 9(1) (directing attention to Annex III(a), which provides the format and required information of a certification document).

(220.) Id. annex III(a). This represents a substantial loosening of the European certification requirements that previously required American wine exporters to detail the wine production practices. Sogg, supra note 3. Per Annex III(b), a copy of form 5100.31 to accompany bottles entering the United States may be found at www.ttb.gov, the website of the U.S. Department of Treasury, Alcohol, and Tobacco Tax and Trade Bureau. Wine Agreement, supra note 163, annex III(b).

(221.) Wine Agreement, supra note 163, tit. III, art. 9(2).

(222.) Id. tit. III, art. 9(5). This resolution to provide notice on certification requirements seems to answer a historical failure of both parties to provide openness in regulatory policy making. See Letter from James Clawson, Chief Executive Officer, JBC International, to Catherine A. Novelli, Assistant US Trade Representative (Feb. 11, 2005) (http://www.ustr.gov/assets/World_Regions/Europe_Middle_East/ Transatlantic_Dialogue/Public_Comments/asset_upload_file580_7237.pdf) (describing the historic lack of cooperation between the United States and European Union in regulatory policy formulation in the context of the 2004 U.S.-E.U. Declaration on Strengthening Our Economic Partnership).

(223.) Wine Agreement, supra note 163, tit. IV.


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