Brexit has been a major worry for
the Sherry business and the Consejo Regulador has been very concerned that if
Britain leaves the EU without a deal (hard Brexit) there may be no more protection
for European wines with a Geographical Indication such as Sherry. A hard Brexit
could lead to increased duty and import taxes, customs and exchange costs, not
to mention higher costs of logistics. Indeed, just weeks ago UK tax was
increased on wine which annoyed producers as there was no increase on the more
British products such as beer, cider and spirits. There have even been fears of
a revival of “British Sherry”, something unthinkable 51 years after it was
banned. Most of these problems would naturally affect all wines destined for the
UK but they would hit Sherry particularly hard as it already bears higher taxes
than table wines and the UK is its largest export market.
The Prime Minister, Theresa May,
and the EU have now thrashed out a 585 page draft agreement in which article
54/2 establishes that wines with a Geographical Indication, Denominacion de
Origen or traditional specialities recognised and protected under European law will
have the right to the same protection as hitherto. The problem now is that Mrs
May will need the agreement of the UK parliament which is by no means
guaranteed and the agreement of the 27 remaining EU states. It is a step
forward but much uncertainty remains.
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