Wine: Europe is excited about the opportunities of Mercosur

Published 2024년 12월 25일

Tridge summary

The European wine industry is facing challenges such as drought, which is affecting production and leading to tariff agreements like Mercosur to reduce barriers for export. Despite these challenges and the ongoing impact of climate change, the sector remains optimistic with a projected decrease in production of 7% to 37 million hectolitres. The industry has seen some recovery in national consumption, with a 2.8% growth, but faces instability in the foreign market. The quality of grape remains high, despite the drought, and there is a drop in sales and stock in red wines, while white and rosé wines are performing better. The industry is hopeful for the future, especially with the Mercosur agreement, and expects the export market to recover, with the United States being the leading market for wine consumption.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

From Europe, the world of wine is affected, not by the loss of purchasing power and its impact on domestic consumption, but by uncertainty as a result of the drought. But it is not only that, the lack of water also impacts the decline in production of some varieties. The sector is optimistic and hopes for a better future, especially after agreements such as Mercosur. According to the information provided after the signing of this agreement on December 6, in the wine sector, tariffs of up to 35% are currently applied to EU wines that enter Mercosur, but with the agreement, tariffs for bottled wine will be progressively eliminated (in eight years). Climate change and drought have been two of the handicaps that wine has encountered in this year 2024, but they have not been the only ones; labeling, depressed consumption and the postponement of the planting of vineyards in some areas to avoid saturating the market have been other challenges. As for the harvest, a final production of 37 ...

Source: Agromeat