14 December 1998
Wine sours EU-South Africa deal

THE European Union (EU) is held up from concluding a trade deal with South Africa by a dispute over wine labelling.

Under the agreement the EU would abolish tariffs on 94% of South African imports while South Africa would abolish 86% of tariffs on imports.

The agreement would open up many agricultural markets, although the EU has insisted that tariffs on milk, beef and cereals remain.

The liberalisation would take place over 10 years.

The dispute centres on a trademark issue: the EUs insistence that South Africa cannot describe its EU-bound wine as port and sherry.

  • Financial Times 14/12/98 page 1, 4