COMMISSION OF THE EUROPEAN COMMUNITIES C0M(93) 304 final Brussels, 28 July 1993 Proposal for a COUNCIL DECISION concerning the conclusion and signature of an Agreement between the European Economic Community and Australia on trade in wine mtffimmm (presented by the Commission) -• • '•* • - -1 - Explanatory Memorandum By Decision of 14 December 1992, the Council authorized the Commission to commence negotiations with Australia with a view to concluding a bilateral agreement between the EEC and Australia on trade in wine, with the objective of facilitating and promoting trade in wine between the community and Australia. 2. The negotiations, conducted by the Commission on the basis of the guidelines laid down by the Council, resulted in an Agreement based on the principles of non-discrimination and reciprocity. The main features of the Agreement are as follows : (a) Mutual recognition of oenological practices and requirements concerning the analytical composition of wines: Recognition takes account of the particular conditions in which wine is produced by the two contracting parties. The Agreement provides for a procedure whereby the list of mutually recognized oenological practices can be extended or restricted, particularly to take account of scientific progress or in the interests of public health; (b) Reciprocal protection of wine names: Protection includes not only geographical indications (and appellations of origin), but also traditional expressions used to describe a particular quality or type of wine. Under the Agreement, Australia formally undertakes to refrain from using, in Australia and on its export markets, all those Community geographical names which it has to date considered as generic or semi-generic. This operation will be carried out according to a well-defined timetable for most names. For certain names which are particularly sensitive for Australia, the transitional period during which they may still be used will be fixed by common accord before the end of 1997. In order to lay down certain minimum rules guaranteeing that consumers are correctly informed as to the origin of the wine and that there is fair competition between producers, the provisions concerning the protection of wine names are accompanied by provisions governing the use of geographical names and names of vine varieties; (c) Simplification of the rules on licensing for wine imports: The Community will grant Australia certain facilities regarding the import licensing arrangements for wine. The facilities are comparable to those already granted to the United states (see Regulations (EEC) No 3590/85 and No 2390/89). Australia, which has liberal import arrangements, undertakes not to take more restrictive measures; - /I OL - (d) Mutual assistance between the control authorities in the wine sector: There is provision for direct collaboration between the Community and Australian authorities, particularly by means of information exchange where it is suspected that the Agreement is being violated. 3. since the provisions of this Agreement are directly linked to measures covered by the common agricultural policy, and specifically by the Community rules on wine and winegrowing, this Agreement must be established at Community level. in order to facilitate the implementation of certain provisions of the Agreement, it is proposed that the Commission be authorized to make the necessary technical adjustments in accordance with the procedure laid down in Article 83 of Council Regulation (EEC) No 822/87, which enables close cooperation between the Member States and the Commission. 5. in view of the above, the Council is asked to approve this Agreement, Financial implications: As the trade in wine essentially only concerns high quality wine, the impact on the budget will be negligible. Small and medium-sized enterprises: No competitive or cost impact for small and medium-sized enterprises. - A *-- PROPOSAL for a Council Decision of concerning the conclusion and signature of an Agreement between the European Economic Community and Australia on trade in wine THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 113 thereof, Having regard to the proposal from the Commission, Whereas the conclusion of the Agreement negotiated between the European Economic Community and Australia on trade in wine will facilitate and promote trade in wine between the two contracting parties; whereas it is therefore desirable to approve the said Agreement; Whereas, in order to facilitate the implementation of certain provisions of the Agreement, the Commission should be authorized to make the necessary technical adjustments in accordance with the procedure laid down in Article 83 of Council Regulation (EEC) No 822/87 of 16 March 1987 on the common organization of the market in wine-*-, as last amended by Regulation (EEC) No 1756/922; Whereas, .since the provision:» ol this Aqrixwncnt. «iii> cliicclly linked to measures covered by the common agricultural policy, and specifically by the Community rules on wine and winegrowing, this Agreement must be established at Community level, 1 OJ No L 84, 27.3.1987, p. 1. 2 OJ No L 180, 1.7.1992, p. 27. - 2 - HAS DECIDED AS FOLLOWS: Article 1 The Agreement between the European Economic Community and Australia on trade in wine is hereby approved on behalf of the European Economic Community. The text of the Agreement is attached to this Decision. Article 2 The President of the Council is hereby authorized to designate the person empowered to sign the Agreement and to deposit the instrument of approval by the Community. The President of the Council shall make the notification provided for in Article 27(1) of the Agreement. Article 3 For the purposes of Article 17(2) of the Agreement, the Commission is hereby authorized to conclude the necessary acts amending the Agreement, in accordance with the procedure laid down in Article 83 of Regulation (EEC) No 822/87. Article 4 The commission, assisted by the representatives of the Member States, shall represent the Community in the Joint Committee set up by Article 18 of the Agreement. Article 5 This Decision shall be published in the Official Journal of the European Communities. Done at Brussels, For the Council The President 0003 EC/AUSTRALIA WINE AGREEMENT Agreement between the European Economic Community and Australia on trade in wine The European Economic Community, hereinafter called "the Community", of the one part, and Australia, of the other part, hereinafter called "the Contracting Parties", desirous of creating favourable conditions for the harmonious development of trade and the promotion of commercial cooperation in the wine sector on the basis of equality, mutual benefit and reci­ procity, recognising that the contracting Parties desire to establish closer links in the wine sector which will permit further development at a later stage, have agreed as follows : 0004 Article 1 The Contracting Parties agree, on the basis of non-discrimination and reciprocity, to facilitate and promote trade in wine originating in the Community and in Australia on the conditions provided for in the present Agreement. Article 2 1. The present Agreement applies to wines falling under heading 22.04 of the Harmonised System of the International Convention on the Harmonised Commodity, Description and Coding System, done at Brussels on 24 June 1983. 2. For the purposes of the present Agreement, unless the contrary intention appears: (a) "wine originating in" shall mean, when followed by the name of one of the Contracting Parties, a wine made within the territory of that Contracting Party from grapes which have been wholly harvested and produced in the territory of that Contracting Party; (b) "geographical indication" shall mean an indication as specified in Annex II, including an "Appellation of Origin", which is recognised in the laws and regulations of a Contracting Party for the purpose of the description and presentation of a wine originating in the territory of a Contracting Party, or in a region or locality in that territory, where a given quality, reputation or other characteristic of the wine is essentially attributable to its geographical origin; 0005 (c) "traditional expression" shall mean a traditionally used name as specified in Annex II, referring in particular to the method of production or to the quality, colour or type of a wine, which is recognised in the laws and regulations of a Contracting Party for the purpose of the description and presentation of a wine originating in the territory of a Contracting Party; (d) "description" shall mean the names used on the labelling, on the documents accompanying the transport of the wine, on the commercial documents particularly the invoices and delivery notes, and in advertising; (e) "labelling" shall mean all descriptions and other references, signs, designs, or trade marks which distinguish the wine and which appear on the same container, including its sealing device or the tag attached to the container and the sheathing covering the neck of bottles; (f) "presentation" shall mean the names used on the containers, including the closure, on the labelling and on the packaging; (g) "packaging" shall mean the protective wrappings, such as papers, straw envelopes of all kinds, cartons and cases, used in the transport of one or more containers. Article 3 1. Unless otherwise specified in this Agreement, importation and marketing shall be conducted in compliance with the laws