Issue link: http://read.dmtmag.com/i/534849
w w w. v w m m e d i a . c o m J u l y - A u g 2 015 | V I N E YA R D & W I N E RY M A N A G E M E N T 1 3 On May 18, the World Trade Organization ruled that country of origin labeling (COOL) of cer- tain meat products is discriminatory in violation of the NAFTA trade agreement, and violates WTO rules. That ruling opened the door for Canada and Mexico, the two countries that complained about the COOL labeling requirements, to impose retal- iatory tariffs on a number of U.S. products begin- ning as early as this summer or fall. Both the Wine Institute and WineAmerica, key industry lobbying groups, are encouraging Congress to take action to prevent the threat- ened tariffs against American wine and other products from going into effect. Hundreds of millions of dollars and hard-earned sales gains in the Canadian market could be at stake. "This all goes back to the 2002 farm bill, which was signed into law by President Bush. It required that certain cuts of beef be labeled according to the country of origin," explained Michael Kaiser, WineAmerica's director for pub- lic affairs. "It took a lot of time for the Depart- ment of Agriculture to actually implement the rule. Fast forward to 2014 and after it has been implemented for a few years, Mexico and Can- ada filed grievances with the World Trade Orga- nization saying it is a discriminatory practice and violated the NAFTA trade agreement." The WTO has ruled on more than one occa- sion that the labeling requirement is, in fact, discriminatory and the United States will either have to change the rule, or the Mexican and Canadian governments will be allowed to imple- ment retaliatory sanctions in the form of tariffs. "Canada last year put out the list of possible retaliation products, a whole host of products, U.S. Wine Targeted for Retaliatory Tariffs and wine was on the list. This isn't necessarily the final list – that will be coming out this summer, unless Con- gress is able to 'fix' the issue," Kai- ser said. He noted that Canada and Mexico have 30 days from May 18, the date of the last ruling, to submit a propos- al to the WTO regarding their losses from COOL labeling and proposed sanctions. The U.S. will then have a chance to appeal those findings or approved sanctions. Once that last appeal is heard and ruled on, the retaliatory tariffs can be implemented. That could be in late August or early September. NEWS FLASH Joseph Phelps Dies At 87 Pioneering California winemaker Joseph Phelps, founder of Joseph Phelps Vineyards, died on April 15 at age 87. One of the first California winemakers to embrace Rhone-style blends in the '70s, Phelps was perhaps best known for the iconic Insignia Bordeaux-style blend. Duckhorn Acquires Three Palms Duckhorn Wine Company has acquired Napa Valley's Three Palms Vineyard from Sloan and John Upton for an undisclosed price. Duck- horn Vineyards made its inaugural Three Palms Vineyard Merlot in 1978, and has been purchasing all of the grapes from the 83-acre Three Palms Vineyard since 2011. Seneca Lake Wine Trail Donates $35,000 to Wine Center The 35 winery members of the Seneca Lake Wine Trail have donated $1,000 each to support the construction of the Finger Lakes Commu- nity College Viticulture and Wine Center in Geneva, N.Y. The donation will be matched by the state for a total of $70,000 toward the con- struction of the 9,000-square-foot building. Inaugural Sonoma Barrel Auction Raises $461,700 The inaugural Sonoma County Barrel Auction, held May 1 in Santa Rosa, Calif., raised $461,700 for the Sonoma County Vintners. The trade tasting and auction event featured rare small-lot wines, mostly futures, representing 14 Sonoma County appellations. Oregon Wines Fly Free Extended The Oregon Wines Fly Free program, which allows visitors traveling from Oregon on Alaska Airlines to check a case of Oregon wine for free, has been extended through 2017. The program is a collaboration among the Oregon Wine Board, Travel Oregon and Alaska Airlines. More than 300 Oregon wineries participate. For more industry news briefs, visit the News Flash page on V&WM's website: http://www.vwmmedia.com/magazine/web-exclusive1.asp. BY TIM TEICHGRAEBER The U.S. requirement that certain meat products be labeled by country of origin has been ruled as discriminatory. Photo: Thinkstock