WINE SECTOR: impact of the U.S Presidential election
The US presidential election involved all political commentators, trying to understand what Biden’s election as President of the United States could mean for Europe. It is reasonable to expect a return to more relaxed relations between Washington and Brussels. Which could lead, for example, to a shared solution on the tariffs front, which has seen the acceleration of the EU, ready to follow the spiral in which the US and the EU have become entangled in recent years.
However, the Trump administration has decided the extension of the 25% additional taxes to all EU non sparkling wines and to Armagnac, Cognac…
The crisis due to the Covid pandemic, the closure in many countries of the Horeca continues to worry the wine sector. The French, Italian and Spanish wine cooperatives – which represent more than 50% of European production – organized a public debate together with the European Think Tank Farm Europe on the crisis of wine sector due to Covid-19 pandemic and on the way to overcome the current crisis.
On December 16, the European Commission published the EU Agricultural Outlook 2020-2030 for the EU wine sector. It foresees that consumers are expected to favour less alcoholic and sparkling wine, slowing down the decline in consumption. In parallel, other uses such as distillation should increase. Regarding trade, EU exports should be driven by high demand for wine with a geographical indication and sparkling wines. Overall, EU wine production should slightly decline.
full note available on FE Members’ area