Wine Sector Eyes South America with EU-MERCOSUR Deal

The European Committee of Wine Companies (CEEV) has reiterated its strong endorsement of the EU-MERCOSUR trade agreement, emphasizing its critical importance for the economic sustainability of the European wine sector. CEEV, which represents European wine producers and traders, stresses that the agreement will unlock significant new trade opportunities, particularly in South America.

CEEV encompasses 25 national organizations, representing producers and marketers responsible for over 90% of European wine exports, including still, sparkling, aromatized, and liqueur wines. The organization views the EU-MERCOSUR agreement as a pivotal opportunity to enhance market access and expand the reach of European wines to consumers in Argentina, Brazil, Paraguay, and Uruguay.

After a quarter-century of negotiations, CEEV President Mauricio González-Gordon has called for the swift ratification of the agreement. He pointed out that the initial provisions for improved wine market access and geographical indication (GI) protections were already promising. Recent updates addressing environmental concerns have further strengthened the case for finalizing the deal. González-Gordon highlighted the pressing need for European wine companies to secure new markets amid ongoing challenges in the global economy.

The agreement promises to reduce tariffs and simplify trade regulations, which are currently major hurdles for European wine exports to MERCOSUR countries. Brazil, in particular, presents a significant growth opportunity for high-quality European wines. However, import tariffs of up to 27% and burdensome import procedures have stymied progress in this market. Ignacio Sánchez Recarte, CEEV's Secretary General, underscored the need to dispel misconceptions about the agreement, pointing out that it would primarily eliminate barriers hindering European wine exports while not posing a risk of excessive wine imports from non-EU countries.

CEEV also highlighted the alignment of the EU-MERCOSUR agreement with the European wine sector's commitment to sustainability and responsible trade. This dual focus on economic growth and environmental stewardship positions the agreement as mutually beneficial for both regions.

The organization has urged policymakers to move forward with concluding and ratifying the deal, emphasizing its potential to deliver significant economic benefits to the European wine industry.