European Union, Mexico Raise New Barriers To U.S. Wine

American wine exporters now have new international trade barriers to hurdle in Europe and Mexico.

EU NOW BANNING U.S. LABELS CONTAINING THE WORDS CHATEAU, VINTAGE, SUPERIOR AND MORE

Chateau Montelena, Clos Pegase,  Chateau Ste. Michelle, and Clos du Bois are among the many wineries whose names have been banned on labels by the European Union which has reserved “chateau” and “clos” for itself. Also banned are “vintage, fine” and other words.

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MEXICO RETALIATES ON TRUCK IMBROGLIO, IMPOSES 20 PERCENT TAX ON AMERICAN WINE

American wine exporters must immediately begin paying a 20 percent tax on all wine shipper to Mexico, this because a bit  of special-interest legislation buried among  the thousands of earmarks in the most recent stimulus/bailout bill.

At issue is a provision to scrap a pilot program to allow Mexican transport trucks the ability to cross the border and make deliveries in the United States.

That provision — part of the 1994 North American Free Trade Agreement — has long opposed by the Teamsters Union and its supporters in Congress. Despite their initial assertions that the trucking practice would put unsafe trucks and drivers on the road, the U.S. Department of Transportation and other agencies have found no evidence of that.

Mexico has retaliated for the elimination of the trucking provision by imposing a taxes of 10 to 45 percent tax on a list of more than 90 U.S. products.

A fine overview of this issue has been written by Kevin McCallum at the Santa Rosa Press-Democrat. Read his article here.