Photo by Klara Kulikova on Unsplash
The EU should demonstrate unity in responding to Donald Trump’s controversial tariffs.
So says the European Parliament’s Intergroup on Wine, Quality Foodstuff and Spirits after it analysed the consequences of the 20% tariffs.
The new additional taxes will be applied to all EU products starting from April 9.
During a meeting, representatives from CEEV, CEVI and EFOW outlined the impact that tariffs are already having in the wine sector.
Since President Trump threatened to impose 200% tariffs on EU wines and spirits on March 13 -as retaliation for the countermeasures announced by the European Commission in response to the US’s 25% steel tax- the sector has been incurring losses of approximately €100 million per week.
Esther Herranz, Co-Chair of the Intergroup from EPP, emphasised the need for diplomacy to reach mutually beneficial agreements with the US for specific products and avoid an escalation of the trade war initiated by the Trump administration. In that sense, Herranz called on the EC to establish a dialogue as soon as possible with the US to reach those objectives.
Eric Sargiacomo, Co-Chair of the Intergroup from S&D, stressed that applying a single tariff to all products of each country is not the worst option for the wine and spirits sector, nevertheless the rationale behind the calculation of the rates seems particularly unclear. Regarding the European response to President Trump, he considers that “the European Union should demonstrate unity in responding to this announcements but it should be proportionate to avoid an escalation”.
On behalf of Patriots, the VC of the Intergroup, Enikő Győri mentioned that the sector cannot be treated as a bargaining chip in a trade war that we have not started. At the same time, Győri highlighted that the sector has been already the victim of COVID19 crisis and the green agenda during the last mandate. We need to focus on the deregulation and simplification of EU’s legislation that is suffocating the sector. Commission was very late and wrong in its reactions; it should finally start thinking out of the box and come up with smart proposals.
Joachim Streit, VC of the Intergroup from Renew, asked for a wine diplomacy. Describing the situation as a test for the European Commission President, Streit explained the need to open to new markets and explore agreements with countries from Asia, Latin America and other regions to strengthen the European economy and avoid intimidation from the US.
A representative from Spirits Europe reiterated the importance of de-escalating the conflict. In this context, she called for the removal of tariffs on spirits from both the EU and US. The impact of these tariffs on the sector are enormous and poses a long-term threat, potentially endangering its survival over the coming decades.
A representative from OriginEU highlighted the risks and uncertainty currently faced by EU quality products.
He also emphasised the need for new tools to better protect intellectual property rights of GIs (Geographical Indications) and DOs (Designations of Origin) in the international markets, particularly in the US.
