How much and on which Italian wines could US duties do us most harm? In percentage terms on white wines but the absolute terms on red Tuscan PDOs
Are the great Tuscan reds, Brunello, Bolgheri and Chianti Classico the ones that would come out with broken bones if Trump put import duties? Probably they are.
USA DUTIES ON WINE
An analysis made by Corriere Vinicolo draws the geography of the possible disaster, keeping in mind that after October 2019, that is after the application of the duties, it seems French wines lost 36% of their business to the USA, although Champagne and great reds were exempt from the tax. Such a backlash in purchases that perhaps the income of the American treasury has been negative even with respect to the past. Apparently the real effect of the duties was not the recovery of the money paid to the Airbus Consortium, which according to Trump brought Boeing to its knees (as if the 737 Boeing did not fall) but to terrorize European governments and create a veritable chaos in the US distribution system of importers, distributors and retailers.
WHAT WOULD HAPPEN IN THE ITALIAN CELLARS WITH THE ARRIVAL OF USA DUTIES?
But let’s see what would happen in Italy if the import taxes from the USA were to arrive on our bottles as well. The United States absorb 26% of the value of the export of Italian wine.
According to Corriere Vinicolo the wines with the largest export share in the USA are Marsala (60%), DOP Whites of Friuli Venezia Giulia (50%), sparkling IGT (42%) red Tuscan DOP (39%).
Following are the still and effervescent white wines both DOP and varietal and then the red wines of Piedmont DOP with 30% of the turnover.
THEY WOULD BE THE WHITE WINES OF NORTHERN ITALY AND THE TUSCANY THOSE MOST AFFECTED
In absolute terms the greatest blow will, in my opinion, be in Tuscany. In fact, the price of the bottles of Brunello, Bolgheri, Chianti Classico is clearly higher than that of Marsala or the white wines of Northern Italy.
Therefore in percentage terms it would be the whites which would take the greatest blow because the Italian bottles depend on the US market for 34% while the reds are 23% of the total but the US is still a strategic market for both. If to this we add the corona virus that will give a braking to the Chinese market and the Brexit with its still unclear effects both in terms of taxes and sentiment, the export of wine takes the form of a game of hazard with enormous unknowns.
FROM THE DUTIES TO THE DISRUPTION OF THE WORLD WINE MARKET
It remains to be seen how and where European wine will be sold, which is already unable to enter the United States due to duties. This is a knock-on effect on the entire planet, which will probably become even more evident as the months pass.
The hope is that the President of the European Commission, the German Ursula von der Leyen, will succeed in negotiating with Trump to prevent the disaster of the European agri-food industry. The list of products to be taxed includes above all food.
Hence, even from an ethical point of view, it is not fair to charge agriculture the price of the Airbus/Boeing funding dispute or that of Amazon’s e-commerce taxes. What do dairy, grape or pig producers have to do with the aviation industry?
THE IMPORTANCE OF A EUROPEAN POLITICAL NEGOTIATION TO END THE THREAT OF TARIFFS
Certainly, among other things, Italy is not part of the Airbus Consortium and therefore the US duties, which now hinder the export of Parmigiano or pecorino Romano cheese, appear even less justified than those that afflict French or German wineries.
Not to mention the Italian sounding ( parmisan, Parma ham …made in USA), with dubious correctness also under the sanitary profile, which is the major beneficiary of all this sad story.
And finally it is not by increasing the funding of the COM on the promotional investments of European agri-food companies in markets outside our continent that the problem is remedied. The solution must be political and community. As a result, we all shout Forza Ursula do not abandon us!