Brussels will increase European financing of wine promotion programs to 60%

The Management Committee for the Common Organization of Agricultural Markets of horizontal issues has approved on Wednesday two legislative proposals aimed at making more flexible the promotion measure of the Spanish Wine Sector Support Program (PASVE).

Specifically, Brussels, at the request of Spain in a common position with France, has agreed to extend the financing to EU wine promotion programs from 50% to 60% for a period of twelve months from its entry into force. In addition, changes in promotion programs have been made possible when necessary during the financial year, the option of destination change is allowed and the extension of these programs to more than five years is possible.

These legislative modifications will allow the promotion projects to be adapted to the new needs following the measures adopted by the Donald Trump Administration. Spain has requested the European Commission to carry out a detailed follow-up of the markets of the products concerned so that, if necessary, other mechanisms of the Common Organization of the Agricultural Markets are put in place and even resort to tools on the sidelines of the CAP, to minimize the impact on the agri-food sector.

Spain, with more than 950,000 hectares of planted area, is the country with the largest vineyard area worldwide with 13% of the total. With respect to the European Union, Spain represents 30% of the vineyard area and in terms of production it is in third place worldwide after France and Italy.

EU support for the wine sector is carried out through support programs that are financed through financial items allocated to each Member State, giving them the possibility to choose a series of measures from a set menu at the community level to apply them in their territories for a period not exceeding five years.

The PASVE 2019-2023 is currently being implemented, which has a total budget of 210.3 million euros for the following measures: promotion of wine in third countries, restructuring and conversion of vineyards (including replanting for sanitary and phytosanitary reasons) , investments and distillation.

Trump tariffs
Agriculture has indicated that Brussels thus responds to one of the requests made by the Minister of Agriculture, Fisheries and Food, Luis Planas, since last October 18 the United States began to apply additional tariffs as a result of the Airbus case to certain products, among them agrifoods worth 764 million euros.

The origin of these additional tariffs responds to a conflict of subsidies in the aeronautical sector that is settled within the World Trade Organization (WTO), to which the agri-food sector is “completely foreign”, and on which the imposition of an additional tariff of 25% ‘ad valorem’ for sectors such as wine, olive oil, table olives, cheese, pig meat, citrus fruits and processed fruits.

With regard to wine, the additional tariffs applied do not affect all Spanish exports, since it only affects quiet wines packaged in volumes less than two liters and with a graduation not exceeding 14% in volume, so its impact is “Especially” significant for wines with protected designations of origin (PDO) and protected geographical indications (PGI), of higher quality and added value. The additional tariff for wine has been applied exclusively to the countries of the Airbus Consortium: Spain, France, Germany and the United Kingdom.

The United States is the third destination of Spanish wine exports in value, with an average of 283 million euros in the 2014-2018 period. With regard to wines affected by retaliatory measures, they represent 62.46% of the volume of wine exported to the US and 69.26% of their value. .

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