EU gives pledge on wine changes

By FRAN O'SULLIVAN

European Union Trade Commissioner Pascal Lamy has promised that New Zealand will be able to present its case before a European crackdown on wine labelling takes effect next year.

Lamy has also renewed an EU offer for the local wine industry to negotiate its own agreement with Europe - an offer which has already been rejected.

The $150 million wine industry was stung when a draft paper was issued from Brussels a fortnight ago, presenting what Trade Negotiations Minister Jim Sutton terms a "fait accompli".

The "Brussels edict" was the main talking point at a business lunch Sutton hosted for Lamy in Auckland on Saturday.

Guests such as Montana chief executive Peter Hubscher reportedly said the new regulations - to come into effect on January 1 - could be seen as a protectionist measure against inroads by New Zealand brands.

The scheme would require production terms to be defined in the exporting country's regulations, and would restrict the use of names associated with European regions.

The wine industry fears it may also have to prove to European regulators that approved European methods are used in the production of wine.

Sutton said the details were complicated and officials were seeking further information on their effects.

Lamy assured Sutton that the labelling requirement was a "consumer" requirement, not a backdoor trade protection measure.

And he told the Herald: "If there are aspects of this which raise problems with third parties we will consult them.

"The door is not closed on our side to observations and if there are things that are a matter of concern to this country we will look at it."

If the regulations proceeded, transition measures would ensure that New Zealand wine, which had been through the labelling process, would not be severely affected.

Lamy's assurances have not allayed Sutton's fears.

"The basic situation is they are producing a vast amount of wine they can't find buyers for," he said.

"We are making infuriating inroads into their market because we have a less regulated industry where people can innovate and produce a better product in a way their traditional producers can not."

Lamy's visit followed a EU-led meeting in Fiji to assist developing countries from Africa, the Caribbean and the Pacific in building capacity.