Brussels | Tuesday
THE EU and South Africa have reached an agreement that will prevent South African wine and spirits producers from using traditional European terms such as Porto, Champagne or ouzo, sources said following a meeting of EU agriculture ministers in Brussels.
The agreement covers geographic references on labels and would also protect such names as Chianti, Mosel, grappa or sherry.
In addition, the accord calls for the mutual acceptance by the European Union and South Africa of each other’s wine-making practices.
The EU raised its quota for tax free imports to 420 000 hectoliters from 320 000 as of next year.
The 15-nation EU will also provide 15 million euros ($13,5-million) in aid to restructure the South African wine and spirits industry.
The value of South Africa wine exports to Europe totalled 201 million euros ($180-million) in 1999, 19 times the value of EU wine exports to South Africa.
”The deal will offer genuine commercial benefits to the European and the South African wine sector,” EU Farm Commissioner Franz Fischler said in a statement. – AFP, Sapa
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