WTO?prepares vodka verdict

A long-standing debate over the correct definition of vodka could soon be over, thanks to an agreement between member states’ governments, members of the European Parliament and the European Commission.

Disagreements over the labelling of vodka arose during a revision of a 1976 regulation on the definition of spirit drinks. Countries producing large quantities of vodka, led by Sweden, Finland and Poland, argued that only potato and cereal-based vodkas should keep their name, with vodkas distilled from fruit needing a new label.

A compromise put forward last year by the Finnish EU presidency suggested renaming all non-potato or cereal vodkas as "vodka made from", leading to claims of discrimination from manufacturers of fruit-based vodka and importers.

A new compromise negotiated by the German EU presidency would require vodka’s raw material to be specified on the bottle, but not necessarily as part of the name on the front label. Vodkas made from potato or cereal would be exempt from the new law.

The compromise was last week sent to the World Trade Organization’s technical barriers to trade (TBT) committee in Geneva for approval.

The Parliament and Commission have given their support for the compromise, pending advice from the TBT.

"We are happy for the EU to go along with any new system as long as it is legally watertight," said a Commission spokesman in charge of agriculture.

Commission lawyers last year concluded that it would be difficult to defend the Finnish compromise in the European Court of Justice "for reasons of proportionality". It would also, they said, "with near certainty" be defeated in a WTO panel.

The TBT has 60 days to decide. If approved, the spirits drinks regulation will go to a plenary vote in Parliament this June and then be adopted as an ‘A’ point, without debate, in the Council of Ministers.

Poland still says it will oppose the new compromise but is not thought to have enough support to block a deal.

A long-standing debate over the correct definition of vodka could soon be over, thanks to an agreement between member states’ governments, members of the European Parliament and the European Commission.