European wine sector voices alarm over possible exclusion from EU-U.S. trade deal

On Friday, July 11, the Comité Européen des Entreprises Vins (CEEV) expressed serious concern after learning that wine and aromatized wines may be excluded from the European Union’s current trade offer in negotiations with the United States. This development comes just two days after European Commission President Ursula von der Leyen reported to the European Parliament on the ongoing status of EU-U.S. trade talks. Von der Leyen stated that the EU remains in constant dialogue with the U.S. administration, aiming to reach an agreement that avoids new tariffs and protects European interests. She also emphasized that the EU is preparing for any possible outcome of these discussions.

The CEEV, which represents the interests of European wine companies, reacted strongly to reports that wine could be left out of the list of sensitive goods included in the deal package. Marzia Varvaglione, President of CEEV, said, “We are deeply concerned about the potential exclusion of wine from the list of sensitive goods included in the deal package.” She highlighted that the European wine sector is already facing significant challenges and warned that a permanent ad valorem tariff would worsen the crisis for thousands of wineries and grape growers across Europe. Varvaglione called on the European Commission to ensure that wine and aromatized wine products remain part of the negotiation package with U.S. officials.

The United States is currently the largest export market for EU wines, accounting for 27% of EU wine exports by value and 21% by volume. The U.S. market is considered essential for the economic sustainability of Europe’s wine sector and for rural communities across member states. Since April, a 10% U.S. import duty has been in place on EU wines, which industry estimates say has already caused a 12% drop in overseas sales. If this duty were to increase to between 17% and 20%, and given that the U.S. dollar has lost 15% against the euro recently, CEEV estimates that damage to EU wine exports could reach as high as 30%.

CEEV leaders argue that evaluating EU-U.S. wine trade relations should not be limited to export statistics alone. Ignacio Sánchez Recarte, Secretary General of CEEV, pointed out that American businesses also benefit significantly from European wine imports due to the three-tier system for alcohol distribution in the U.S., which separates producers, distributors, and retailers. According to Sánchez Recarte, for every dollar generated by European wine exports to the U.S., American distribution and hospitality sectors earn $4.50. In 2024, €4.88 billion worth of EU wine exported to the U.S. would have generated approximately $22 billion in revenue for American companies involved in distribution and hospitality.

Industry representatives stress that wine should not be seen as a weak point in trade negotiations but as a strategic asset that benefits both sides. Both EU and U.S. wine sectors have consistently opposed tariffs on wine trade and support free and open markets between Europe and America.

As negotiations continue, stakeholders across Europe’s wine industry are urging policymakers not to overlook their sector’s importance or its role in supporting jobs and rural economies on both sides of the Atlantic. The outcome of these talks will likely have significant consequences for producers, exporters, distributors, and consumers involved in transatlantic wine trade.