| Summary: | Thesis (MBA)--Stellenbosch University, 2002. === ENGLISH ABSTRACT: During the negotiating stages of the TOCA, the EU and South Africa could not
reach an agreement on the use of certain EU geographical indications related
to wine products. The geographical indication issue threatened the signing of
the entire TOCA. At the request of the EU, South Africa agreed to negotiate a
separate Wine and Spirits Agreement, in order to finalise the TOCA.
The EU-SA Wine and Spirits Agreement was eventually negotiated and came
into effect on 1 January 2002. The initial issue relating to the geographical
indications remained controversial throughout the negotiations and matters
were made worst when the initial contentious denominations of Port and
Sherry were expanded by the EU to include Grappa, Ouzo, Korn, Kornbrand,
Jagertee, Jaqertee, Jagatee and Pacharan. South Africa eventually agreed to
phase out the use of these denominations over specified time periods.
The current wording of the agreement will also result in South Africa having to
yield a variety of well known trade marks such as Nederburg and Roodeberg.
Article 7(8) of the Wine Agreement implies that in the case of conflict between
a South African wine trade mark and an EU geographical indication for wine,
the South African trade mark will always have to yield to the EU geographical
indication. The entire geographical indication matter is being contested by
South Africa and is still under negotiation. South Africa and the EU agreed to allocate reciprocal duty free tariff quotas to
wine products. These tariff quotas will remain effective until the FTA has been
established, following the transitional periods as agreed upon in the TOGA.
The duty free funds will however not have such a direct impact on the wine
industry as have been envisaged initially, because the funds are in the hands
of the EU importers. Various business plans are being implemented to allow
the South African wine industry to benefit from these and any future funds.
The EU offered financial assistance to the value of €15 million for the
restructuring of the South African wine industry as well as for the marketing of
the South African wine and spirits products. To date none of these funds have
been allocated and various proposals have been made to the South African
government in order to obtain these funds from the EU.
The EU-SA Wine and Spirits Agreement is a continuous evolving agreement,
where both parties are allowed to modify the existing agreement with the
consent of the other party. Such modifications are allowed with the premise
that it would contribute to the facilitation and promotion of trade in wine and
spirits products between South Africa and the EU.
South Africa must take cognisance of the implications of the
EU-SA Wine and Spirits Agreement and ensure that they do not end up
losing more than what they are gaining. === AFRIKAANSE OPSOMMING:
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