New world oak in wines raises Europe's hackles

By CLAIRE TREVETT

New Zealand winemakers are backing their Australian counterparts in a wrangle with the European Commission over the use of oak chips to flavour some wines.

Talks between the European Commission and Australia to update a 1994 wine and spirits trade agreement have broken down, with no timetable set for recommencement.

Reports in the Sydney Morning Herald and the Guardian said the dispute was over the Australian practice of using oak chips to flavour wine, rather than ageing it the traditional way, in expensive oak barrels.

The practice of using oak chips was frowned upon in Europe, where it can be used only in trial lots.

Several New World countries - including Chile, America and New Zealand - also use the technique for some wines.

NZ Wine Growers chief executive officer Philip Gregan said it should not affect New Zealand's wine trade with the EU, because most wines were made according to EU standards.

But he criticised the EC's moves to ban wines made by non-European methods as protectionist.

"It's just a prescriptive approach which is indicative of the whole European approach. If it hasn't been done for the last 100 years, you can't do it ... What they can't do is impose the same rules on importing countries if there's not a World Trade Organisation reason to do so, and that comes down to health and safety."

There were no health, safety or integrity issues to warrant banning the use of oak chips or flavouring, provided it was not labelled misleadingly, Mr Gregan said.

The use of oak chips was permitted by the international wine standards body, the Office of International Vine and Wine.

Villa Maria group winemaker Alastair Maling said the EU's stance was a ploy to cut out competition.

Villa Maria did not use oak chips, but some wines were made using oak staves - barrel off-cuts put into old barrels or bolted into tanks.

He said using alternative methods of giving wine oak flavour meant customers could get good value for money.

Montana managing director Peter Hubscher said snobbery over the use of oak chips or staves was "nonsense".

"You're getting puritanical when you say 'the way we do it is right or wrong' ... I wouldn't criticise anyone for doing it. I wouldn't want to say 'we are pure and they're not'. If you make cheaper wine and it's affordable and people like the taste, then go for it."

Babich Wines chairman Peter Babich said his company had used oak chips, but it was not a major part of the company's wine making.

"I don't think oak chips are a big deal in New Zealand ... We can't fight the world on price so we are not in there.

"We are a bit expensive, and if you're a bit expensive you've got to be better than chips will give you."

The European Commission has previously granted access for wine made with oak chips in Chile and America into European markets.

The adviser to the delegation of the European Commission to Australia and New Zealand, Tim Hurdle, would not comment on the reason for the cancellation of talks with Australia, saying only there was a pause in the negotiations while it consulted with the member states.

He said there was goodwill on both sides. No timetable had been set for future negotiations.

The EU is New Zealand's second-largest trading partner, with exports of $4.8 billion in 2002.

Wine exports to the EU have increased by 7 per cent from $110,737,000 in 2000 to $140,582,000 last year.