TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13179


WINE

Oenological Practices


Agreement Between the
UNITED STATES OF AMERICA
and OTHER GOVERNMENTS

Done at Toronto December 18, 2001

with

Annex



NOTE BY THE DEPARTMENT OF STATE

Pursuant to Public Law 89—497, approved July 8, 1966
(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued
under the authority of the Secretary of State shall be competent
evidence . . . of the treaties, international agreements other than
treaties, and proclamations by the President of such treaties and
international agreements other than treaties, as the case may be,
therein contained, in all the courts of law and equity and of maritime
jurisdiction, and in all the tribunals and public offices of the
United States, and of the several States, without any further proof
or authentication thereof.”



MULTILATERAL

Wine: Oenological Practices

Agreement done at Toronto December 18, 2001;
Entered into force December 1, 2002.
With annex.

AGREEMENT
ON MUTUAL ACCEPTANCE
OF
OENOLOGICAL PRACTICES
The Parties to this Agreement,
DESIRING to facilitate international trade and to avoid the application
of obstacles to trade in wine in accordance with the Marrakesh Agreement
Establishing the World Trade Organization of 15 April 1994 (hereinafter the
WTO Agreement);
HAVING an interest in regulating the wine produced as well as
consumed in their respective territories;
HAVING concluded such assessments of each Party's laws, regulations
and requirements in respect to oenological practices as are required by their
respective domestic laws;
HAVING a fundamental and legitimate interest in regulating the health
and safety aspects of wine imported into their respective territories;
HAVING an interest in preventing the use of deceptive labeling
practices;
RECOGNIZING that:
Import restrictions based on oenological practices have been used as obstacles to
international trade;
Oenological practices are the subject of laws, regulations and requirements in
the territories of the Parties and that uniform oenological practices cannot take
account of all local conditions, climatic variations and traditions;
Each Party has established acceptable mechanisms for regulating oenological
practices;
Grape growing and oenological practices will continue to evolve;
AGREE as follows:
ARTICLE 1
Objective
The objectives of this Agreement are:
(a) to facilitate trade in wine among the Parties; and
(b) to avoid, in accordance with the WTO Agreement, the application of
obstacles to such trade,
through the mutual acceptance by the Parties of their respective mechanisms for
regulating oenological practices as provided for in their respective laws,
regulations and requirements.
ARTICLE 2
Multilateral Obligations
Nothing in this Agreement shall limit the rights or obligations of the Parties
under the WTO Agreement.
ARTICLE 3
Scope
1. This Agreement shall be limited to international trade in wine as that
term is defined in Article 4(a) of this Agreement.
2. Nothing in this Agreement shall in any way prevent a Party from taking
measures, including but not limited to monitoring, for the protection of
human health and safety, provided such measures are in accordance with
the provisions of the WTO Agreement.
3. Nothing in this Agreement shall impose commercial obligations on any
entity with respect to the purchase and sale of products covered by this
Agreement.
4. Nothing in this Agreement is intended to interfere with the provisions of
a Party's existing agreements or preclude Parties, either individually or
collectively, from concluding agreements regarding oenological practices
with third countries.
5. Nothing in this Agreement shall require a Party to repeal, derogate from
or amend its definition of wine or its laws, regulations and requirements
relating to oenological practices for the production of wine in its
territory.
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ARTICLE 4
Definitions
For the purposes of this Agreement, the following definitions apply:
(a) "Wine" is a beverage produced by the complete or partial alcoholic
fermentation exclusively of fresh grapes, grape must, or products derived
from fresh grapes in accordance with oenological practices which are
authorized for use under the regulatory mechanisms of the exporting
Party, and contains an alcohol content of not less than 7% and not more
than 24% by volume;
(b) "Oenological practices" relate to wine making materials, processes,
treatments and techniques permitted by law in the exporting Party, but
do not include labeling, bottling or packaging for final sale; and
(c) "Consensus" is achieved if, after such notice as the Council's procedures
provide for, no party present at the meeting when a decision is taken formally
objects to that proposed decision.
ARTICLE 5
Mutual Acceptance of Oenological Practices
1. The Parties shall accept each other's laws, regulations and requirements
relating to oenological practices and the mechanisms to regulate them.
2. The Parties shall permit the importation of wine produced in the territory
of another Party in conformity with that other Party's laws, regulations and
requirements relating to oenological practices and the mechanisms to regulate
them.
3. Wine exported by a Party to another Party shall conform to the exporting
Party's laws, regulations and requirements relating to oenological practices
governing wine intended for the exporting Party's domestic consumption. The
exporting Party, at its option, also may export to an importing Party wine
produced in compliance with the importing party's laws, regulations and
requirements relating to oenological practices governing wine intended for the
importing Party's domestic consumption.
4. No Party shall require any other Party to apply for a derogation or other
exemption or to provide routine certification with regard to any oenological
practice except as a Party may require consistent with Article 3(2).
5. When a Party has reason to believe that any wine produced in, exported
from or imported into its territory would compromise human health or safety,
the Party shall notify all other Parties immediately via a mechanism to be
determined by the Council.
ARTICLE 6
Labeling of Wine Subject to this Agreement
1. Technical regulations and standards relating to labeling shall be
transparent, and non-discriminatory, and issued in accordance with the WTO
Agreement, and particularly the Agreement on the Application of Sanitary and
Phytosanitary Measures and the Agreement on Technical Barriers to Trade and
not be used as a mechanism to frustrate the object and purpose of this
Agreement.
2. The Parties shall enter into negotiations for an agreement on labeling
with a view to concluding such an agreement within a period of one calendar
year from the date that this Agreement has entered into force.
ARTICLE 7
Management of this Agreement
1. A Council of the Parties, in which each Party has equal representation, is
hereby established to manage this Agreement. All decisions by the Council shall
be by consensus. The Council shall determine its own rules and procedures.
2. The Council may consider any matter relating to the effective
functioning of this Agreement. In particular it shall be responsible for:
(a) seeking resolution of any questions relating to the application of this
Agreement;
(b) providing a forum for discussion of issues that may arise concerning this
Agreement;
(c) considering ways to enhance the operation of this Agreement;
(d) adopting amendments to this Agreement and its annex in accordance
with Article 10;
(e) determining the working languages under this Agreement; and
(f) deciding upon the application of States to accede to this Agreement
pursuant to Article 13(2).
ARTICLE 8
Transparency
1. The laws, regulations and requirements relating to oenological practices
and the mechanisms to regulate them of the States referred to in Article 12(1) as
at the date of entry into force of this Agreement for each Party shall be
incorporated in a Schedule.
2. Upon the decision of the Council referred to in Article 13(2) to agree to
the accession of a State to this Agreement, the laws, regulations and
requirements relating to oenological practices and the mechanisms to regulate
them of that State as submitted to the Council pursuant to Article 13(1) shall be
incorporated in the Schedule.
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3. Any modification of the laws, regulations or requirements relating to
oenological practices and the mechanisms to regulate them of a Party shall be:
(a) published or otherwise made available in a manner consistent with and
to the extent provided in the WTO Agreement, and in particular the
Agreement on the Application of Sanitary and Phytosanitary Measures
and the Agreement on Technical Barriers to Trade, and
(b) included in the Schedule.
4. Each Party shall, in a manner consistent with and to the extent provided
in the WTO Agreement, and in particular the Agreement on the Application of
Sanitary and Phytosanitary Measures and the Agreement on Technical Barriers
to Trade, notify to the Council any proposals to amend its laws, regulations or
requirements relating to oenological practices and the mechanisms to regulate
them prior to such amendments coming into effect in its territory and give the
other Parties the opportunity to comment on such proposals.
ARTICLE 9
Consultations and Dispute Settlement
1. If one or more Parties considers a measure taken by one or more Parties
to be inconsistent with this Agreement, that Complaining Party or Parties (the
Complainant) may request in writing consultations with the other Party or
Parties (the Respondent). The Parties to the dispute shall, within 20 days of
receipt of the request, consult with each other with a view to resolving the issue.
2. If the issue has not been resolved through consultations within 45 days
of receipt of the request for consultations, and imports have been prohibited or
restricted, any of the Parties to the dispute may request, in writing, to the other
Party to the dispute and the Chairman of the Council that a Committee of
Experts be established to consider the issue in accordance with procedures set
out in the Annex. Any conclusions adopted by the Committee shall be by
consensus.
3. After the request for a Committee of Experts has been made and the
Committee formed to hear the dispute, the Complainant shall submit its views in
writing (the complaint) to the Chairman of the Council and the Respondent.
Within 30 days of receiving the complaint, the Respondent shall forward its
reply to the Chairman of the Council and the Complainant, together with its
supporting evidence and documentation.
4. The Committee of Experts shall forward its conclusions to the Parties to
the dispute within 60 days of the date on which the Committee of Experts
received the Respondent's submission provided for in paragraph 3 of this Article
or the expiration of the period in which such submission is to be made in
accordance with paragraph 3 of this Article.
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5. Where the Committee of Experts finds that the Respondent has breached
this Agreement, the Committee shall provide in its decision a reasonable period
of time for the Respondent to rectify its breach. The period established shall be
the shortest reasonable time period feasible. If the Parties to the dispute have
not agreed by the expiry of that period that the breach has been rectified, the
Complainant may set forth in writing, to the presiding expert and the
Respondent evidence of non-compliance and request the Committee to decide
whether the breach has been rectified. The Respondent shall have 21 days from
the date of receipt of the Complainant's request to the presiding expert to
respond to the Complainant's allegations. The Committee shall issue its
decision within 15 days after the expiration of the deadline for the Respondent's
response.
6. If the Committee finds that the Respondent has failed to rectify such
breach within the designated period of time, the Complainant may suspend its
obligations in relation to the Respondent under paragraphs 1 to 4 of Article 5 of
this Agreement.
7. The Parties to the dispute may agree for purposes of a specific dispute
under this Article to follow different procedures than those set out in this Article
for the purpose of expediting, enhancing, or facilitating the resolution of the
specific dispute.
8. Paragraphs 2 to 6 of this Article shall not apply to matters arising under
Article 3(2) of this Agreement or to any matters under this Agreement that also
raise issues of WTO consistency. Nothing in this Article shall be interpreted as
implying any change in the rights and obligations of a Party under the WTO
Agreement, including the dispute settlement provisions of that Agreement.
ARTICLE 10
Amendment
1. Any Party may propose amendments to this Agreement or its annex.
The text of any proposed amendment shall be submitted to the depositary, which
shall promptly communicate it to all Parties at least ninety days in advance of its
consideration by the Council.
2. Initial consideration of any proposed amendment shall take place at the
first meeting of the Council following communication of the proposed
amendment. Amendments shall be adopted by the Council by consensus.
3. Instruments of acceptance in respect of an amendment shall be deposited
with the depositary. An amendment shall enter into force for Parties having
accepted it on the thirtieth day following the receipt by the depositary of the
instruments of acceptance of a majority of Parties. Thereafter, it shall enter into
force for each Party depositing its instrument of acceptance on the thirtieth day
following the receipt by the depositary of that Party's instrument of acceptance.
Each State that accedes to this Agreement after the entry into force of any
amendment shall become a Party to the Agreement as amended.
ARTICLE 11
Withdrawal
A Party may withdraw from this Agreement by written notification to the
depositary. Withdrawal shall take effect six months after the date of receipt of
the notification, unless the notification specifies a later date or the notification is
withdrawn prior to this date.
ARTICLE 12
Parties and, Entry into Force
1. This Agreement shall be open for signature by Argentina, Australia,
Canada, Chile, New Zealand, South Africa and the United States of America
until March 31, 2002.
2. This Agreement is subject to ratification, acceptance or approval by
signatory States. Instruments of ratification, acceptance or approval shall be
deposited with the depositary.
3. This Agreement shall enter into force on the first day of the month
following the date of deposit of the second instrument of ratification, acceptance
or approval. It shall enter into force for each subsequent signatory State
thereafter on the first day of the month following the date of deposit of its
instrument of ratification, acceptance or approval.
4. A signatory State that has not deposited an instrument of ratification,
acceptance or approval within thirty months of the date this Agreement enters
into force or such additional period as approved by the Council shall be deemed
not to have signed this Agreement.
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ARTICLE 13
New Parties
1. Any State that has not signed this Agreement, and States having signed
but not ratified, accepted or approved this Agreement according to Article 12,
may by written application to the depositary seek to accede to it. Such
application shall include a copy of that State's laws, regulations and
requirements relating to oenological practices and the mechanisms to regulate
them.
2. The Council, at its first meeting following the receipt of any such
application, shall assess the laws, regulations and requirements relating to
oenological practices and the mechanisms to regulate them of the State
concerned. If the Council finds these acceptable, it shall notify the State
of its decision and may invite the State to accede to this Agreement.
3. Following receipt of the notification of the Council's decision in favour
of accession, but in no case later than 30 months thereafter or such period as
approved by the Council, the State concerned shall deposit its instrument of
accession with the depositary. This Agreement shall enter into force for that
State on the first day of the month following the date of deposit of its instrument
of accession.
The original of this Agreement, of which the English, French and Spanish
language texts are equally authentic, shall be deposited with the Government of
the United States of America.
IN WITNESS WHEREOF the undersigned, being duly authorised
thereto by their respective Governments, have signed this Agreement.
DONE at Toronto, on the 18th day of December in the year two
thousand and one.
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NOTE: English text of Agreement will be printed in this publication.
ANNEX
The Committee of Experts
1. The Parties shall establish a list of experts in the field of oenological
practices.
2. Each Party shall appoint four experts to the list, who shall be its
nationals.
3. The list shall be maintained by the depositary.
4. The Parties to the dispute shall agree on the selection of three experts
from the list, none of whom shall be nationals of the Parties to the dispute. In
the event the Parties to the dispute cannot agree within 15 days from the date of
the request for the establishment of a Committee of Experts made to the
Chairman of the Council, the Chairman of the Council shall select these three
experts, none of whom may be nationals of the Parties to the dispute, at random
from the list. The Chairman of the Council shall conduct such random selection
in the presence of official representatives designated by the Parties to the
dispute.
5. When the Chairman of the Council receives the Complainant's and
Respondent's complete submissions in accordance with Article 9 of this
Agreement, the Chairman of the Council shall forward the submissions to the
experts appointed by the Parties to the dispute within three days. Should an
expert not be available, a replacement shall be appointed by the affected Party or
Parties, or selected by the Chairman of the Council, in accordance with
procedures set out above in paragraph 4.
6. The Committee shall utilize telephonic and electronic communications
to the greatest extent possible.
7. The Parties to the dispute shall bear their own respective costs and
expenses incurred in relation to the proceedings before the Committee of
Experts. The fees and expenses of the experts shall be borne by the Parties to
the dispute, in equal shares.
8. The Council shall adopt rules of procedure that will apply to the
Committee of Experts established pursuant to Article 9 of the Agreement and
this Annex.
FOR THE GOVERNMENT OF THE COMMONWEALTH OF AUSTRALIA
POUR LE GOUVERNEMENT DU COMMONWEALTH D'AUSTRALIE
POR EL GOBIERNO DEL COMMONWEALTH DE AUSTRALIA
Signed on
Signé le
Firmado el
18 December 2001.
FOR THE GOVERNMENT OF CANADA
POUR LE GOUVERNEMENT DU CANADA
POR EL GOBIERNO DE CANADA
Signed on
Signé le
Firmado el
Dec 18, 2001
FOR THE GOVERNMENT OF THE REPUBLIC OF CHILE
POUR LE GOUVERNEMENT DE LA REPUBLIQUE DU CHILI
POR EL GOBIERNO DE LA RÉPUBLICA DE CHILE
Signed on
Signé le
Firmado el
December 18th
FOR THE GOVERNMENT OF NEW ZEALAND
POUR LE GOUVERNEMENT DE LA NOUVELLE ZÉLANDE
POR EL GOBIERNO DE NUEVA ZELANDIA
Signed on
Signé le
Firmado el
18 December 2001.
FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA
POUR LE GOUVERNEMENT DES ÉTATS-UNIS D'AMÉRIQUE
POR EL GOBIERNO DE LOS ESTADOS UNIDOS DE AMERICA
Signed on
Signé le
Firmado el
December 18, 2001