China terminates investigation of EU wine imports

China's Ministry of Commerce issued a notice on Monday to formally terminate anti-dumping and anti-subsidy investigations into EU wine exports to China after the EU and Chinese wine industries reached a Memorandum of Understanding on March 18, said a statement on the website of the ministry.

EU Agriculture Commissioner Dacian Ciolos said in a Friday press release, "I welcome the amicable solution that has been found by the two industries. My expectation is that the question mark hanging over EU wine exports as a result of the Chinese investigation is now clearly resolved and this is very good news.

"We have been strengthening collaboration and cooperation with China in the agricultural sector over the past four years and I am committed to taking this further, because the scope to bring benefits to farmers and consumers in China and Europe is very clear. I now look forward to working with my counterparts in the Chinese Government to build on this outcome."

EU Trade Commissioner Karel De Gucht said: "I applaud the fact that the Chinese wine industry will withdraw its application for anti-dumping and anti-subsidy measures. I expect that the case will now be formally terminated so that the EU wine industry can continue to export its quality products to China in a fair and competitive environment. After the recent agreement reached in the polysilicon case, this is yet another positive development which will further strengthen the EU-China bilateral relationship."

On July1st, 2013, the ministry initiated an anti-dumping and anti-subsidy investigation into EU wine exports to China.

In parallel to the investigation, a "Business to Business" dialogue between the EU wine industry, represented by the European Committee of Wine Companies, and the Chinese wine industry, represented by the Chinese Alcohol Drinks Association, was initiated in November 2013 in Beijing.

The MOU reached between CEEV and CADA during this dialogue consists of a commitment by the Chinese industry to withdraw its anti-subsidy and anti-dumping complaint against EU wine imports, and an agreement on technical assistance and cooperation between both parties for an initial period of 2 years.

Upon the withdrawal of the complaint and the subsequent termination of the investigation by the Chinese authorities, the EU wine industry will provide a number of technical assistance packages to China in areas such as winegrowing, including experimental vineyards and mechanization techniques; winemaking and quality control;, marketing approaches; wine tastings; and the Geographical Indications protection system.

This assistance will be provided through activities such as hosting study visits in Europe, seminars, and other training and internship activities. The Chinese wine industry will assist the EU industry to organize EU wine tastings in China, to improve wine knowledge among Chinese consumers and promote the appreciation of wine and its culture. Both parties will set up permanent information and communication exchanges, monitor the implementation of their cooperation, and collaborate at international level on advocacy activities aimed at improving market access conditions in third countries.

From 2007 through 2012, the Chinese wine market has experienced significant growth. EU wine exports to China amounted to 764 million euros in 2012, 71 percent of which were from France.