International Organisation of Vine and Wine Re-Accession: briefing

Meeting report

LAND AND ENVIRONMENTAL AFFAIRS SELECT COMMITTEE
24 June 2004
INTERNATIONAL ORGANISATION OF VINE AND WINE RE-ACCESSION: BRIEFING

Chairperson: Rev P Moatshe (ANC)

Documents handed out:
Agricultural Department Power Point Presentation
Agricultural Minister's letter to National Council of Provinces regarding re-accession
Statute of the Office International Document
Draft Internal Rules of Procedure Title 3: Regulations for the personnel (Version 1)
Draft Internal Rules of Procedure (Version 7)

SUMMARY
The Department of Agriculture briefed the Committee on the new International Organisation of Vine and Wine. The purpose of the presentation was to receive approval from the Select Committee (SC) for South Africa to be signed in as a member of the new International Organisation of Vine and Wine (OIV). The old OIV was reviewed because it was dominated by Eurocentric interests particularly French. All the Director Generals were French, the working language was predominantly French and decision making was dominated by votes in favour of large European wine producers.

The new OIV boasted increased participation by members because of the usage of five languages. Decision-making was based on scientific evidence and all member countries would have two base votes and one additional vote. The new OIV would establish international standards on wine and vine products setting guidelines on winemaking practices and techniques, product definition and labeling and food safety principles. The Committee endorsed the Department's request.

MINUTES
The Agricultural Department delegation included Dr E Mogajane, Ms W Jonker and Ms J Rathebe.

Dr Mogajane presented an overview of the International Organisation of Vine and Wine (OIV) providing its historic background and explaining the resolution in 1997 to review the OIV because of its Eurocentric approach and French dominated interests. The review led to the establishment of a new treaty in April 2001.

The Department requested Committee's consent to terminate South Africa's membership to the old OIV and approve its membership in terms of the new treaty.

The benefits of the reviewed OIV were that technical decisions were based on scientific evidence, there would be enhanced participation because of the use of five languages and an increased transparency on budgetary and administrative matters in the Organisation.

The Committee agreed to recommend that Parliament approve South Africa's accession to the treaty of April 2001 and termination of its membership to the old OIV.

Discussion
In response to Dr Mogajane stating that South Africa would have to contribute 45 000 Euros per annum to the new OIV, Mr M Mzizi (ANC) asked whether the renewal of membership would have additional costs as it was calculated in Euros.

Dr Mogajane believed that South Africa would not be much affected by the currency issue. The cost of membership would be calculated according to the mutually agreed upon formula. This formula was based on the individual country's position in the vitvinicultural world. In the old OIV all decision-making was based on voting and that meant that European countries such as France which had high production levels, would have more votes. However, in the new OIV, technical issues would be based on consensus. Decision-making would then be based only on scientific evidence.

Mr G Krumbock (DA) complained about the fact that South Africa was prevented from using names such as Champagne and Port when labeling wine. Champagne made in South Africa had to be called sparkling wine, which is not a name familiar to the international market. European countries imported most of its wine from South Africa and yet wine bottle labels did not indicate the manufacturing country of that product. He asked what role OIV played in ensuring that South African wines were labeled correctly to indicate country of origin.

Dr Mogajane responded that the new OIV should be separated from the European Union (EU). The old OIV was dominated by French interests. Successful lobbying over the past two years had ensured that the newly elected Director General (DG) was not French. There was an Italian DG at present. The benefits of the reviewed OIV such as greater participation by members because of the usage of five languages (including English) meant that clear deliberations on issues such as the one raised by Mr Krumbock could take place. Previously the OIV working language was predominately French. He hoped that sufficient monitoring could be done so that members could be briefed on a regular basis on decision-making processes at the Organisation.

Mr F Adams (NNP) asked what position South Africa holds in the world of winemakers.

Dr Mogajane responded that South Africa was definitely in the top ten in the vitivinicultural world.

Mr Adams referred to one of OIV's objectives being to set guidelines on production definition and labeling. He said that he was concerned about the foreign labeling and bottling of South African wine. For example, he had seen in Europe that South African wine was labeled: produced in South Africa, bottled in Chile. He asked how the Organisation could protect South African labeling and production from Europe and Australia, which is the next biggest importer of wine.

Dr Mogajane responded that industry-protected labeling would be discussed in technical committees set up by OIV. Therefore, it was critical that South Africa accedes to the treaty to ensure fair and equal participation in discussions around food safety standards and labeling.

The Chair asked how it was possible that if South Africa was in the top ten, it had a small research capacity.

Ms Rathebe responded that researchers here needed to interact with researchers from other countries and the OIV presented the perfect platform for interaction. Dr Mogajane explained that the research capacity was available but not in all scientific fields. For example, there could be advanced research in biochemistry in Italy that would necessitate communication with them by South Africa's researchers.

The Chair referred to the financial contribution of each member to OIV as decided by its General Assembly. He asked how that payment was formulated.

Ms Jonker responded that the calculation was derived from annual production, annual exports and imports, the total area planted and the country's position in the vitivinicultural world.

The Committee agreed to recommend that Parliament approve South Africa's accession to the treaty of April 2001 and termination of its membership to the old OIV.

The Chair thanked Dr Mogajane for the presentation and wished her well in her future endeavours.

The meeting was adjourned.