Proposal P253 - Wine Production Requirements (Australia Only)
FINAL ASSESSMENT REPORT
21 August 2002
EXECUTIVE SUMMARY AND STATEMENT OF REASONS
Problem
Australian wine sales to the European Union (EU) may be jeopardised when, at the end of the two-year transition period, Volume 1 of the Food Standards Code is repealed if the provisions of Volume 1 relating to wine are not carried over.
During the Review of the Food Standards Code, Australia New Zealand Food Authority (ANZFA) now FSANZ determined that some of the production provisions for wine that underpin Australia's Agreement with the EU (and that are contained in Volume 1 of the Food Standards Code) were inappropriate in a joint wine standard because they prescribed practices relating to wine quality that could become technical barriers to trade. ANZFA developed a joint standard on wine, Standard 2.7.4 - Wine and Wine Product, that recognises accepted wine practices throughout the world. Wine made in New Zealand or imported from other wine producing countries need comply only with this Standard. However Australia's Agreement with the EU on trade in wine relies on Australian wine being recognised as wine of designated quality and origin (e.g.appellation controllé, DOC, qualitats wein etc.) and the provisions in this minimally prescriptive joint standard do not implement these requirements.
As a temporary measure until a more appropriate legislative vehicle is found, Standard 2.7.4 - Wine and Wine Product of Volume 2 of the Food Standards Code refers directly to provisions of Standard P4 - Wine, Sparkling Wine and Fortified Wine in Volume 1 of the Food Standards Code.
It was intended at the time of the Review that the Australian Wine and Brandy Corporation Act 1980 (AWBC Act) might incorporate these provisions. However, officers in the Department of Agriculture, Fisheries and Forestry - Australia (AFFA) have since informed FSANZ that t here are difficulties associated with placing such provisions in AWBC Act. This is because the AWBC Act did not have coverage of all wine made and sold within Australia, particularly wine manufactured by unincorporated bodies and not traded interstate or internationally.
Ministers' strong support for the development of a production standard on wine
In June 2002 Ministers of the Australia New Zealand Food Standards Council (ANZFSC) approved policy guidelines for the development of primary production and processing standards. These guidelines were notified to ANZFA on 28 June 2002, and FSANZ has had regard to these guidelines in developing this Proposal. However, the guidelines address, primarily, matters relating to food safety and hygiene. This Proposal is driven by trade and market access considerations rather than falling within the model developed for primary production and processing standards.
In their joint communiqué of 24 May 2002, ANZFSC Ministers strongly supported ANZFA's stated intention to proceed urgently with the development of a wine standard for Australia to maintain the requirement of the old Food Standards Code and, thus, ensure continuation of the current access of Australian wine to the European Community market.
Objective
The intent of this Proposal (P253) is to carry over the effect of the production provisions for wine made in Australia only, which are currently contained in Volume 1 of the Food Standards Code. It is proposed that these provisions be contained in an Australia-only standard, Standard 4.1.1 - Wine Production Requirements (Australia only), in a new Chapter (Chapter 4) of Volume 2 of the Food Standards Code. This new chapter will accommodate standards regulating primary production and processing as they are developed.
The minimally prescriptive joint Standard on wine developed during the Review, i.e., Standard 2.7.4 - Wine and Wine Product, in Chapter 2 of Volume 2 of the Food Standards Code will remain the compliance standard for wine made in New Zealand and for wine imported into Australia and New Zealand.
Regulatory options and impact analysis
This Proposal involves transfer, without substantive amendment, of wine production provisions from Volume 1 of the Food Standards Code to Volume 2 of the Food Standards Code. Since there is no regulatory change proposed there will be no change to the impact on stakeholders.
WTO notification
The proposed wine production standard will not apply to wine imported into Australia or New Zealand. It will affect only wine producers in Australia. Therefore no World Trade Organization (WTO) notification is considered necessary.
Previous Authority consideration
ANZFA released the P253 Draft Assessment for public comment on 8 May 2001.
Only one round of public comment was undertaken because the recommendations of this Proposal, if accepted, were considered to have no significant adverse effect on the interests of any person or body; the matter has been recently considered with extensive consultation during the recent Review, so stakeholders are well acquainted with the issues; the stakeholders are highly concentrated (Australian and New Zealand wine industry, Australian government departments with responsibility for agriculture and trade, New Zealand Government) and can be effectively targeted and consulted with one round of public comment; and the provisions in question already exist but will be moved to an Australia-only standard in a new chapter of Volume 2 of the Food Standards Code, which is to contain production and processing standards.
Submissions closed on 19 June 2002.
Summary of submissions received
Six submissions were received in response to the P253 Draft Assessment Report: one from the peak industry body representing the Australian wine industry; one from government; one from a state-based food technology association; two from consumer associations; and one from a private company.
Five of the six submissions supported the recommendations of the Draft Assessment. Of these, one submission suggested minor changes to the drafting proposed at Draft Assessment.
The sixth submission was referred to the Project Manager of a scheduled application (A463), as it falls outside the scope of this Proposal.
Recommendations made at Draft Assessment
The Draft Assessment Report for P253 recommended that production provisions for wine, currently in Volume 1 of the Food Standards Code, be carried over without substantive amendment into an Australia-only standard, Standard 4.1.1 - Wine Production Requirements (Australia only), in a new chapter (Chapter 4) of Volume 2 of the Food Standards Code.
These proposed production provisions for wine in Volume 1 of the Food Standards Code are mainly from Standard P4 - Wine, Sparkling Wine and Fortified Wine but also include provisions from other standards (all from Volume 1) for 'brandy', 'grape spirit', and for specific sugars, as well as provisions restricting the use of food additives and processing aids to those currently permitted for wine in Volume 1.
Changes to Draft Assessment resulting from Final Assessment
The Final Assessment Report for P253 recommends minor changes to the drafting proposed at Draft Assessment. The proposed changes are not substantive and comprise deletion of redundant provisions relating to sugars; correction of typographical errors; and a minor wording change to clarify the intent of proposed subclause 3(1) i.e., that additives may be used throughout the wine production process.
In June 2002 Ministers on ANZFSC approved policy guidelines for the development of primary production and processing standards that address paddock to plate production and processing requirements, focussing primarily on matters relating to food safety and hygiene.
ANZFA to FSANZ transitional requirements for a proposal at full (draft) assessment have been followed and no additional submissions have been received. The full (draft) assessment that was carried out by ANZFA has been reviewed having regard to the policy guidelines notified to ANZFA on 28 June 2002.
It should be noted that, as the focus of this Proposal is maintenance of market access for Australian wine to key markets in the EU, it is not fully consistent with the Ministerial policy guideline for development of primary production and processing standards. The Ministerial policy guideline is advisory in nature.
Statement of Reasons
In order to underpin Australia's agreement with the EU on trade in wine the Final Assessment Report for P253 recommends that production provisions for wine made in Australia only, which are in Volume 1 of the Food Standards Code, be placed in an Australia-only standard in a new chapter (Chapter 4) of Volume 2 of the Food Standards Code. This chapter is to accommodate standards regulating primary production and processing as they are developed.
The inclusion of the wine production provisions in Volume 2 of the Food Standards Code will continue the current regulatorystatus quo for wine made in Australia only, when Volume 1 of the Food Standards Code is repealed at the end of the transition period and will have no effect on wine made in New Zealand or on imported wine.
Recommendations
Specifically, the recommendations of P253 are:
- that production provisions for wine, currently in Standard P4 - Wine, Sparkling Wine and Fortified Wine of Volume 1 of the Food Standards Code, be carried over without substantive amendment into an Australia-only standard, Standard 4.1.1 - Wine Production Requirements (Australia only), in a new chapter (Chapter 4) of Volume 2 of the Food Standards Code;
- that the provisions defining 'brandy' and 'grape spirit', referred to in Standard P4 and contained in Standard P3 - Spirits and Liqueurs of Volume 1 of the Food Standards Code, be carried over without substantive amendment into Standard 4.1.1 - Wine Production Requirements (Australia only) of Volume 2 of the Food Standards Code;
- that provisions be placed in Standard 4.1.1 - Wine Production Requirements (Australia only) of Volume 2 of the Food Standards Code that restrict the use of food additives and processing aids to those that are currently listed in Standard P4; and
- that consequential amendments be made to Standard 2.7.4 - Wine and Wine Product of Volume 2 of the Food Standards Code, removing references to Volume 1 of the Food Standards Code (viz: references to Standard P4 - Wine, Sparkling Wine and Fortified Wine, Standard P3 - Spirits and Liqueurs and Standard P6 - Wine Products and Reduced Alcohol Wine).