US embassy cable - 05VIENNA2716

UNCLAS VIENNA 002716 
 
SIPDIS 
 
STATE FOR EB/TPP/ABT AND EUR/AGS 
STATE PASS USTR FOR MURPHY AND BOMER 
USDA FOR FAS/ITP/SHEIKH, FAS/EAMED/POMEROY, FAS/FAA/DEVER 
 
NOT FOR INTERNET DISTRIBUTION 
 
E.O. 12958:  N/A 
TAGS: EAGR, ETRD, AU 
SUBJECT:  U.S.-E.U. WINE NEGOTIATIONS:  AUSTRIAN POSITION 
 
REF:  STATE 127683 
 
1.  Summary:  On August 11, Dr. Rudolf Schmid, Deputy 
Head of the Ministry of Agriculture's Wine Department, 
provided written comments in response to reftel talking 
points.  The response noted that Austria supported the 
European Commission in all previous proceedings of the 
U.S.-EU wine negotiations.  However, Austria sees a clear 
need to resolve all controversial international matters 
(e.g. wine making procedures or denomination regulations) 
at the WTO-level if an agreement cannot be reached.  End 
Summary. 
 
2.  The Ministry of Agriculture's statement noted that 
from an Austrian perspective, the draft agreement binds 
the United States to make concessions on specific matters 
(such as protected designations of origin and matter of 
semi-generic denominations) for the first time.  However, 
these concessions are connected to extensive concessions 
by the European Union, especially in regards to 
winemaking procedures. 
 
3.  Additionally, although Austria is not affected by the 
debate about semi-generics, Austria expressed 
understanding for the position of the affected Member 
States during the proceedings in Brussels.  The Ministry 
noted many "U.S.-regarded" semi-generic denominations are 
not semi-generic but are European designations of origin. 
Also, in the matter of traditional indicators, Austria 
does not believe equivalency exists between U.S. and EU 
winemaking regulations. 
 
4.  The Ministry noted that the fundamental question for 
Austria and the EC is the future of trade relations if a 
wine agreement is not reached.  Austria sees a clear need 
to resolve all differences (e.g. winemaking procedures, 
denomination regulations) at the WTO-level. 
 
5.  Austria supported the European Commission in all 
previous wine negotiations in Brussels and notes that 
future concessions need to be made. 
 
6.  Austria sees an opportunity to establish a well- 
regulated trade system between the EU and its wine 
trading partners in the future. 
van Voorst