Trade perspectives in the wine sector Jean-Marie BARILLERE CEEV President European Parliament 21st April 2015

Key figures EU Wines key figures The European Union is the world’s leading producer, consumer, exporter and importer of wine, accounting for: 45 % of wine-growing areas 65 % of production 57 % of global consumption 70 % of exports in global terms World leaders

Positive trade balance Key figures Wine is EU’s biggest agriculture exporter EU wine exports 8.9 billion € Positive trade balance 6.5 billion €

Trade challenges Increase of the global consumption in the world (243 Mhl in 2012 vs 226 in 2000 – Source OIV) and will continue to grow (urbanisation, population growth,…) 7 countries still represent 60% of the consumption Perspectives of development are very positive in Asia, America, negative in Europe Global increase of wines exchanges in the world (102 Mhl of wine is exported in 2013 versus 55 Mhl in 1995) Future of EU wine goes through exports, even in a context of strong worldwide competition

Key factors to boost exports Elimination of tariffs in new markets Needed, in particular in the Asia/Pacific area to obtain similar market access conditions than our competitors, and to minimize the delay to obtain these conditions Country Entry into force Sparkling wine Bottled still wine China Chile 2015 0 % Australia 2019 ? EU - 14 % Thailand 0% 54 %

Key factors to boost exports Elimination of non tariff barriers Barriers have changed and are now more complicated, technically challenging and time consuming to detect, analyse and remove Burdensome customs procedures and discriminatory tax rules and practices Technical regulations and standards Misuse of SPS issues Poor protection of IPR: GIs and trademarks Abusive and/or non WTO compatible use of TDI Key challenge is to open or to maintain opened markets : by negotiating FTAs that are meaningful for EU exporters by ensuring trade agreements implementation (WTO and FTAs)

Key Free Trade Agreements EU/USA TTIP USA is the first worldwide consumer and the first export market for EU (€2,5 billion)  need for an ambitious TTIP including wine 2006 Wine Agreement needs to be improved in particular for semi-generics Protection of EU GIs is a sine qua non condition for any agreement EU/Japan FTA 3rd export market for EU wines (€730 M) Elimination of tariffs to maintain our competitiveness vis-à-vis our competitors (0% for Chile in 2020) Authorization of some additives internationally recognized (OIV)

Competitiveness is key in global wines markets Need to reinforce EU competiveness Recent study highlighted a decline of the competitiveness of EU wines particularly in the entry-level segment Leadership of EU wines in top range is still a reality Challenges Better adaptation of EU wines to the markets, on all segments, ensuring price and quality stability Reinforcing the bargaining power of EU companies Continuation of positive measures: investment, promotion,… Competitiveness is key in global wines markets

Conclusions Wine is a key offensive sector of the EU agriculture and trade, and we must reinforce our worldwide leader position Improving market access is crucial for the development of these sectors through direct targeted actions through ambitious bilateral agreements in terms of tariffs and NTBs Necessity to have a positive regulatory framework To increase the competitiveness of the sector To maintain a comprehensive, stable and efficient set of regulations in Europe for our companies, and our consumers.

Thank you for your attention!