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PROPOSAL P253 - WINE PRODUCTION (AUSTRALIA ONLY)

8 May 2002

Initial/ Draft Assessment Report

DEADLINE FOR PUBLIC SUBMISSIONS to the Authority in relation to this matter: 19 June 2002

(See ' Invitation for Public Submissions ' for details)

Full Report [ pdf 220kb ]

Executive Summary

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Union (EU) may be jeopardised when, at the end of the two-year transition period, Volume 1 of theFood Standards Code is repealed. The EU has already raised concerns about this with Australian officials.

During the Review of the Food Standards Code, ANZFA determined that some of the production provisions for wine that underpin Australia' s Agreement with the EU (and 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 Products, 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 Products 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.

Officers in the Department of Agriculture, Fisheries and Forestry - Australia (AFFA) have since informed ANZFA that t here are difficulties associated with placing such provisions in the AustralianWine and Brandy Corporation Act 1980 (as was intended at the time of the Review) because the AWBC Act does not have coverage of all wine made and sold within Australia, particularly wine manufactured by unincorporated bodies and not traded interstate or internationally.

Objective

The intent of this Proposal (P253) is to duplicate 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 theFood Standards Code. This new chapter will contain production and processing standards.

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.

Conclusion and Draft Statement of Reasons

In order to underpin Australia' s agreement with the EU on trade in wine the combined initial/draft assessment 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 contain production and processing standards.

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.

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 placed 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 placed without substantive amendment into Standard 4.1.1 - Wine Production Requirements (Australia only) of Volume 2 of the Food Standards Code;

that the provisions defining sugars referred to in Standard P4 and contained in Standard K1 - Sugar and Related Products of Volume 1 of the Food Standards Code be placed 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 theFood Standards Code that restrict the use of food additives and processing aids to those that are currently listed in Standard P4;

that consequential amendments be made to Standard 2.7.4 - Wine and Wine Products 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);

seek public submissions in relation to these proposed draft variations to the Food Standards Code; and

seek public submissions on whether production provisions for wine product, currently in Standard P6 - Wine Products and Reduced Alcohol Wine of Volume 1 of the Food Standards Code should also be placed Standard 4.1.1 - Wine Production (Australia only) in Volume 2 of theFood Standards Code.

Full Report [ pdf 220kb ]